Federal Register

FEDERAL REGISTER

Vol. 86 Wednesday No. 123 June 30, 2021

Pages 34591–34904

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 86, No. 123

Wednesday, June 30, 2021

Agency for Healthcare Research and Quality Copyright Royalty Board NOTICES PROPOSED RULES Request for Nominations: Determination of Rates and Terms for Public Broadcasting, National Advisory Council for Healthcare Research and 34674–34677 Quality, 34752–34753 Education Department Agriculture Department PROPOSED RULES See Animal and Plant Health Inspection Service Proposed Priorities and Definitions: See Federal Crop Insurance Corporation Secretary’s Supplemental Priorities and Definitions for See Food and Nutrition Service Discretionary Grants Programs, 34664–34674 See Foreign Agricultural Service See Forest Service Energy Department NOTICES See Federal Energy Regulatory Commission Agency Information Collection Activities; Proposals, PROPOSED RULES Submissions, and Approvals, 34713 Energy Conservation Program: Energy Conservation Standards for Dehumidifiers, 34639– Animal and Plant Health Inspection Service 34640 NOTICES Test Procedures for Consumer Products, Early Environmental Assessments; Availability, etc.: Assessment Review—Dehumidifiers, 34640–34644 Determination of Nonregulated Status for Maize NOTICES Developed Using Genetic Engineering for Dicamba, Energy Conservation Program: Glufosinate, Quizalofop, and 2,4- Extension of Interim Waiver to AHT Cooling Systems Dichlorophenoxyacetic Acid Resistance, with Tissue- GmbH and AHT Cooling Systems USA Inc. from the specific Glyphosate Resistance Facilitating the Department of Energy Commercial Refrigerator, Production of Hybrid Maize Seed; Reopening of Freezer, and Refrigerator-Freezer Test Procedure, Comment Period, 34714–34715 34727–34730 Okanagan Specialty Fruits Inc.; Availability of a Request, a Financial Assistance for Weatherization Enhancement and Draft Plant Pest Risk Similarity Assessment, and Innovation, 34730–34731 Preliminary Determination for an Extension of Determination of Nonregulated Status for Non- Environmental Protection Agency Browning Apple, 34713–34714 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Bureau of Consumer Financial Protection Promulgations: RULES Missouri; Revision to Emission Data, Emission Fees and Protections for Borrowers Affected by the COVID–19 Process Information Rule, 34677–34679 Emergency under the Real Estate Settlement Procedures NOTICES Act, 34848–34903 Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals, 34745–34748 Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals, 34726–34727 Submissions, and Approvals: Annual Public Water Systems Compliance Report Bureau of the Fiscal Service (Renewal), 34737–34738 NOTICES Application for Reference and Equivalent Method Agency Information Collection Activities; Proposals, Determination (Renewal), 34736–34737 Submissions, and Approvals: Cross-Media Electronic Reporting Rule (Renewal), 34742– Claim Against the United States for the Proceeds of a 34743 Government Check, 34843–34844 EPA’s WaterSense Program (Renewal), 34743–34744 Public Health Emergency Workplace Response System Children and Families Administration (Renewal), 34738 NOTICES Privacy Act; Systems of Records, 34738–34742 Agency Information Collection Activities; Proposals, Proposed CERCLA Settlement Agreement and Order on Submissions, and Approvals: Consent: Head Start Program Performance Standards, 34753–34754 Commonwealth Utilities Corporation Power Plant Site, Rota, Commonwealth of the Northern Mariana Civil Rights Commission Islands, 34748 NOTICES Request for Nominations: Meetings: Science Advisory Board, 34744–34745 Nevada Advisory Committee, 34716–34717 Export-Import Bank Commerce Department NOTICES See International Trade Administration Agency Information Collection Activities; Proposals, See National Oceanic and Atmospheric Administration Submissions, and Approvals, 34748–34749

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Agency Information Collection Activities; Proposals, Federal Motor Carrier Safety Administration Submissions, and Approvals: RULES Generic Clearance for the Collection of Qualitative Extension of Compliance Date for Entry-Level Driver Feedback on Agency Service Delivery, 34749–34750 Training, 34631–34636 NOTICES Farm Credit Administration Hours of Service of Drivers; Exemption Applications: PROPOSED RULES Renewal of American Pyrotechnics Association Bank Liquidity Reserve, 34645–34653 Exemptions from the 14-Hour Rule and the Electronic Logging Device Rule During Independence Federal Aviation Administration Day Celebrations, 34834–34838 RULES Airspace Designations and Reporting Points: Federal Reserve System Dillon, MT, 34626–34627 PROPOSED RULES Great Falls, MT, 34625–34626 Debit Card Interchange Fees and Routing, 34644–34645 Airworthiness Directives: NOTICES Airbus SAS Airplanes, 34623–34625 Change in Bank Control: ATR-GIE Avions de Transport Regional Airplanes, Acquisitions of Shares of a Bank or Bank Holding 34621–34623 Company, 34751 PROPOSED RULES Airspace Designations and Reporting Points: Federal Transit Administration Mesa Del Rey Airport, CA, 34663–34664 NOTICES Airworthiness Directives: Funding Opportunity: The Boeing Company Airplanes, 34653–34662 Fiscal Year 2021; Areas of Persistent Poverty Program, NOTICES 34838–34843 Disposal of Aeronautical Property: Cincinnati/Northern Kentucky International Airport, Fish and Wildlife Service Hebron, KY, 34831–34832 PROPOSED RULES Petition for Exemption; Summary: Endangered and Threatened Species: American Airlines, Inc., 34832 Removing Golden Paintbrush from the Federal List of K and S Aviation Services, Inc., 34833 Endangered and Threatened Plants, 34695–34711 Sikorsky Aircraft Corp., 34833–34834 United States Marine Corps, 34832–34833 Food and Drug Administration Federal Communications Commission PROPOSED RULES RULES Filing of Color Additive Petition: Media Bureau Reinstates Commission’s Prior Rule Changes Gardenia Blue Interest Group, 34664 Regarding Media Ownership Consistent with the U.S. NOTICES Supreme Court’s Decision, 34627–34631 Agency Information Collection Activities; Proposals, PROPOSED RULES Submissions, and Approvals: Disruptions to Communications; Improving 911 Reliability, MedWatch; The Food and Drug Administration Medical 34679–34695 Products Reporting Program, 34754–34757 Television Broadcasting Services: New Plant Varieties Intended for Food Use, 34765–34767 Staunton, VA, 34695 Postmarketing Adverse Experience Reporting and NOTICES Recordkeeping for Drug and Biological Products, Agency Information Collection Activities; Proposals, 34759–34762 Submissions, and Approvals, 34750–34751 Determination of Regulatory Review Period for Purposes of Patent Extension: Federal Crop Insurance Corporation AXONICS, 34757–34759 RULES BALVERSA, 34764–34765 Area Risk Protection Insurance Regulations and Common FETROJA, 34762–34764 Crop Insurance Policy Basic Provisions, 34606–34611 OXBRYTA, 34767–34768 POLIVY, 34768–34770 Medical Devices—Exemption From Premarket Notification; Federal Energy Regulatory Commission Powered Patient Transport, All Other Powered Patient NOTICES Transport: Application: Correction, 34770 Golden Pass Pipeline, LLC, 34734–34736 Combined Filings, 34732–34734 Complaint: Food and Nutrition Service SOO Green HVDC Link ProjectCo, LLC v. PJM RULES Interconnection, LLC, 34732–34733 Supplemental Nutrition Assistance Program: Effectiveness Of Exempt Wholesale Generator Status: Rescission of Requirements for Able-Bodied Adults Tumbleweed Solar, LLC; PGR 2020 Lessee 8, LLC; Sugar Without Dependents; Notice of Vacatur, 34605–34606 Solar, LLC; et al., 34733 Initial Market-Based Rate Filings Including Requests for Foreign Agricultural Service Blanket Section 204 Authorizations: NOTICES Minco Wind Energy II, LLC, 34734 Agency Information Collection Activities; Proposals, Wheatridge Solar Energy Center, LLC, 34731–34732 Submissions, and Approvals, 34715–34716

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Forest Service National Credit Union Administration NOTICES RULES Agency Information Collection Activities; Proposals, Capitalization of Interest in Connection with Loan Submissions, and Approvals: Workouts and Modifications, 34611–34621 Law Enforcement and Investigations Ride-Along Program, 34716 National Institutes of Health General Services Administration NOTICES NOTICES Meetings: Meetings: Center for Scientific Review, 34770–34771 Office of Asset and Transportation Management; Scientific Advisory Committee on Alternative Presidential Commission on the Supreme Court of Toxicological Methods, 34771–34773 the United States, 34751–34752 National Oceanic and Atmospheric Administration Health and Human Services Department PROPOSED RULES See Agency for Healthcare Research and Quality Pacific Island Fisheries: See Children and Families Administration Amendment 9 to the Fishery Ecosystem Plan for Pelagic See Food and Drug Administration Fisheries of the Western Pacific; Modifications to the See National Institutes of Health American Samoa Longline Fishery Limited Entry See Substance Abuse and Mental Health Services Program, 34711–34712 Administration NOTICES Agency Information Collection Activities; Proposals, Homeland Security Department Submissions, and Approvals: See Transportation Security Administration Coral Reef Conservation Program, 34721–34722 See U.S. Customs and Border Protection Western Pacific Community Development Program Housing and Urban Development Department Process, 34722 NOTICES Meetings: Agency Information Collection Activities; Proposals, Fisheries of the Gulf of Mexico; Southeast Data, Submissions, and Approvals: Assessment, and Review, 34725–34726 Application for Roster Personnel (Appraisers) Designation Mid-Atlantic Fishery Management Council, 34726 and Appraisal Reports, 34778–34779 Permit Application: Fisheries of the Caribbean, Gulf of Mexico, and South Interior Department Atlantic; Reef Fish Fishery of Puerto Rico and the See Fish and Wildlife Service U.S. Virgin Islands; Exempted Fishing, 34722–34724 See Land Management Bureau Taking and Importing of Marine Mammals, 34724–34725 See National Park Service See Ocean Energy Management Bureau National Park Service NOTICES NOTICES Agency Information Collection Activities; Proposals, Meetings: Submissions, and Approvals: Chesapeake and Ohio Canal National Historical Park Natural and Cultural Resource Agencies Customer Commission, 34782 Relationship Management, 34779–34780 Requests for Nominations: International Trade Administration Mary McLeod Bethune Council House National Historic Site Advisory Commission, 34781–34782 NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Nuclear Regulatory Commission Certain Cut-To-Length Carbon-Quality Steel Plate from NOTICES the Republic of Korea, 34718–34720 Exemptions: Welded Line Pipe From the Republic of Korea and the COVID–19 Public Health Emergency, 34794–34796 Republic of Turkey, 34720–34721 Fuel Qualification for Advanced Reactors, 34794 Request for Applications: License Amendment Application: Corporation for Travel Promotion Board of Directors, PSEG Nuclear, LLC; Exelon Generation Company, LLC; 34717–34718 Salem Nuclear Generating Station, Unit No. 2, 34788–34790 International Trade Commission License Renewal Application: NOTICES GE-Hitachi Nuclear Energy Americas, LLC, Morris Investigations; Determinations, Modifications, and Rulings, Operation, 34790–34794 etc.: Regulatory Guide: Silicon Metal from Malaysia, 34786–34787 Plant-Specific, Risk Informed Decisionmaking: Inservice Testing, 34787 Land Management Bureau NOTICES Meetings: Ocean Energy Management Bureau Central California Resource Advisory Council, 34781 NOTICES Environmental Impact Statements; Availability, etc.: Library of Congress Vineyard Wind South Project Offshore Massachusetts, See Copyright Royalty Board 34782–34786

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Personnel Management Office Acquisition and Continuance in Control; Fortress PROPOSED RULES Investment Group LLC; Ohio River Partners Federal Employees’ Retirement System: Shareholder LLC, Katahdin Railcar Services, LLC, Present Value Conversion Factors for Spouses of DesertXpress Enterprises, LLC, Union Railroad Co., Deceased Separated Employees, 34637–34639 Gary Railway Co., Delray Connecting Railroad Co., NOTICES Texas & Northern Railroad Co., and Lake Terminal Agency Information Collection Activities; Proposals, Railroad Co., 34830 Submissions, and Approvals: Application for Death Benefits Under the Civil Service Transportation Department Retirement System; Documentation and Elections in See Federal Aviation Administration Support of Application for Death Benefits When See Federal Motor Carrier Safety Administration Deceased Was an Employee at the Time of Death, See Federal Transit Administration 34797–34798 CSRS/FERS Designation of Beneficiary, 34796–34797 Transportation Security Administration Evidence to Prove Dependency of a Child, 34797 NOTICES Agency Information Collection Activities; Proposals, Presidential Documents Submissions, and Approvals: EXECUTIVE ORDERS Critical Facility Information of the Top 100 Most Critical Government Agencies and Employees; Pipelines, 34775–34777 Federal Workforce Diversity, Equity, Inclusion, and Pipeline Operator Security Information, 34777–34778 Accessibility; Improvement Efforts (EO 14035), 34593–34603 Treasury Department ADMINISTRATIVE ORDERS See Bureau of the Fiscal Service United States-Northern Triangle Enhanced Engagement Act; Delegation of Certain Authorities and Functions Under U.S. Customs and Border Protection Section 353 (Memorandum of June 21, 2021), 34591 NOTICES Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties, Securities and Exchange Commission 34774–34775 NOTICES Application: Veterans Affairs Department iCapital KKR Private Markets Fund, et al., 34798–34805 NOTICES Investcorp Credit Management BDC, Inc., et al., 34822– Agency Information Collection Activities; Proposals, 34830 Submissions, and Approvals: Self-Regulatory Organizations; Proposed Rule Changes: Contract for Training and Employment, 34844 BOX Exchange, LLC, 34813–34815 Interest Rate Reduction Refinancing Loan, 34844–34845 Cboe BYX Exchange, Inc., et al., 34806–34807 uSPEQ Consumer Experience Survey (Rehabilitation), National Securities Clearing Corp., 34798 34844–34845 NYSE American, LLC, 34819–34821 The Depository Trust Co., 34807–34812 The Nasdaq Stock Market, LLC, 34815–34819 Separate Parts In This Issue

Substance Abuse and Mental Health Services Part II Administration Bureau of Consumer Financial Protection, 34848–34903 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Reader Aids 2022 National Survey on Drug Use and Health, 34773– Consult the Reader Aids section at the end of this issue for 34774 phone numbers, online resources, finding aids, and notice of recently enacted public laws. Surface Transportation Board To subscribe to the Federal Register Table of Contents NOTICES electronic mailing list, go to https://public.govdelivery.com/ Exemption: accounts/USGPOOFR/subscriber/new, enter your e-mail Abandonment; Union Pacific Railroad Co. in Riverside address, then follow the instructions to join, leave, or and San Bernardino Counties, CA, 34830–34831 manage your subscription.

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CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

3 CFR Executive Orders: 14035...... 34593 Administrative Orders: Memorandums: Memorandum of June 21, 2021 ...... 34591 5 CFR Proposed Rules: 843...... 34637 7 CFR 273...... 34605 407...... 34606 457...... 34606 10 CFR Proposed Rules: 430 (2 documents) ...... 34639, 34640 12 CFR 741...... 34611 1024...... 34848 Proposed Rules: 235...... 34644 615...... 34645 14 CFR 39 (2 documents) ...... 34621, 34623 71 (2 documents) ...... 34625, 34626 Proposed Rules: 39 (3 documents) ...... 34653, 34656, 34660 71...... 34663 21 CFR Proposed Rules: 73...... 34664 34 CFR Proposed Rules: 75...... 34664 37 CFR Proposed Rules: 381 (2 documents) ...... 34674, 34676 40 CFR Proposed Rules: 52...... 34677 70...... 34677 47 CFR 73...... 34627 Proposed Rules: 4...... 34679 9...... 34679 73...... 34695 49 CFR 380...... 34631 383...... 34631 384...... 34631 50 CFR Proposed Rules: 17...... 34695 665...... 34711

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Federal Register Presidential Documents Vol. 86, No. 123

Wednesday, June 30, 2021

Title 3— Memorandum of June 21, 2021

The President Delegation of Certain Authorities and Functions Under Sec- tion 353 of the United States-Northern Triangle Enhanced Engagement Act

Memorandum for the Secretary of State

By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, I hereby delegate to the Secretary of State all authorities and functions vested in the President by section 353 of the United States- Northern Triangle Enhanced Engagement Act (Subtitle F of Title III of Divi- sion FF of Public Law 116–260) (the ‘‘Act’’). Any reference herein to the Act related to the subject of this memorandum shall be deemed to include references to any hereafter-enacted provisions of law that are the same or substantially the same as such provisions. You are authorized and directed to publish this memorandum in the Federal Register.

THE WHITE HOUSE, Washington, June 21, 2021

[FR Doc. 2021–14072 Filed 6–29–21; 8:45 am] Billing code 4710–10–P

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Executive Order 14035 of June 25, 2021

Diversity, Equity, Inclusion, and Accessibility in the Federal Workforce

By the authority vested in me as President by the Constitution and the laws of the United States of America, including sections 1104, 3301, and 3302 of title 5, United States Code, and in order to strengthen the Federal workforce by promoting diversity, equity, inclusion, and accessibility, it is hereby ordered as follows: Section 1. Policy. On my first day in office, I signed Executive Order 13985 (Advancing Racial Equity and Support for Underserved Communities Through the Federal Government), which established that affirmatively advancing equity, civil rights, racial justice, and equal opportunity is the responsibility of the whole of our Government. To further advance equity within the Federal Government, this order establishes that it is the policy of my Administration to cultivate a workforce that draws from the full diversity of the Nation. As the Nation’s largest employer, the Federal Government must be a model for diversity, equity, inclusion, and accessibility, where all employees are treated with dignity and respect. Accordingly, the Federal Government must strengthen its ability to recruit, hire, develop, promote, and retain our Na- tion’s talent and remove barriers to equal opportunity. It must also provide resources and opportunities to strengthen and advance diversity, equity, inclusion, and accessibility across the Federal Government. The Federal Government should have a workforce that reflects the diversity of the Amer- ican people. A growing body of evidence demonstrates that diverse, equitable, inclusive, and accessible workplaces yield higher-performing organizations. Federal merit system principles include that the Federal Government’s recruitment policies should ‘‘endeavor to achieve a work force from all seg- ments of society’’ and that ‘‘[a]ll employees and applicants for employment should receive fair and equitable treatment in all aspects of personnel management’’ (5 U.S.C. 2301(b)(1), (2)). As set forth in Executive Order 13583 of August 18, 2011 (Establishing a Coordinated Government-Wide Initiative to Promote Diversity and Inclusion in the Federal Workforce), the Presidential Memorandum of October 5, 2016 (Promoting Diversity and Inclusion in the National Security Workforce), Executive Order 13988 of January 20, 2021 (Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation), the National Security Memorandum of Feb- ruary 4, 2021 (Revitalizing America’s Foreign Policy and National Security Workforce, Institutions, and Partnerships), and Executive Order 14020 of March 8, 2021 (Establishment of the White House Gender Policy Council), the Federal Government is at its best when drawing upon all parts of society, our greatest accomplishments are achieved when diverse perspectives are brought to bear to overcome our greatest challenges, and all persons should receive equal treatment under the law. This order reaffirms support for, and builds upon, the procedures established by Executive Orders 13583, 13988, and 14020, the Presidential Memorandum on Promoting Diversity and Inclusion in the National Security Workforce, and the National Security Memorandum on Revitalizing America’s Foreign Policy and National Security Workforce, Institutions, and Partnerships. This order establishes that diversity, equity, inclusion, and accessibility are priorities for my Administration and benefit the entire Federal Government and the Nation, and establishes

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additional procedures to advance these priorities across the Federal workforce. Sec. 2. Definitions. For purposes of this order, in the context of the Federal workforce: (a) The term ‘‘underserved communities’’ refers to populations sharing a particular characteristic, as well as geographic communities, who have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life. In the context of the Federal workforce, this term includes individuals who belong to communities of color, such as Black and African American, Hispanic and Latino, Native American, Alaska Native and Indigenous, Asian American, Native Hawaiian and Pacific Islander, Middle Eastern, and North African persons. It also includes individuals who belong to communities that face discrimination based on sex, sexual orientation, and gender identity (including lesbian, gay, bisexual, transgender, queer, gender non-conforming, and non-binary (LGBTQ+) persons); persons who face discrimination based on pregnancy or pregnancy- related conditions; parents; and caregivers. It also includes individuals who belong to communities that face discrimination based on their religion or disability; first-generation professionals or first-generation college students; individuals with limited English proficiency; immigrants; individuals who belong to communities that may face employment barriers based on older age or former incarceration; persons who live in rural areas; veterans and military spouses; and persons otherwise adversely affected by persistent poverty, discrimination, or inequality. Individuals may belong to more than one underserved community and face intersecting barriers. (b) The term ‘‘diversity’’ means the practice of including the many communities, identities, races, ethnicities, backgrounds, abilities, cultures, and beliefs of the American people, including underserved communities. (c) The term ‘‘equity’’ means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment. (d) The term ‘‘inclusion’’ means the recognition, appreciation, and use of the talents and skills of employees of all backgrounds. (e) The term ‘‘accessibility’’ means the design, construction, development, and maintenance of facilities, information and communication technology, programs, and services so that all people, including people with disabilities, can fully and independently use them. Accessibility includes the provision of accommodations and modifications to ensure equal access to employment and participation in activities for people with disabilities, the reduction or elimination of physical and attitudinal barriers to equitable opportunities, a commitment to ensuring that people with disabilities can independently access every outward-facing and internal activity or electronic space, and the pursuit of best practices such as universal design. (f) The term ‘‘agency’’ means any authority of the United States that is an ‘‘agency’’ under 44 U.S.C. 3502(1), other than one considered to be an independent regulatory agency, as defined in 44 U.S.C. 3502(5). Sec. 3. Government-Wide Diversity, Equity, Inclusion, and Accessibility Initia- tive and Strategic Plan. The Director of the Office of Personnel Management (OPM) and the Deputy Director for Management of the Office of Management and Budget (OMB)—in coordination with the Chair of the Equal Employment Opportunity Commission (EEOC) and in consultation with the Secretary of Labor, the Director of the Office of Science and Technology Policy, the Assistant to the President for National Security Affairs, the Assistant to the President for Domestic Policy (APDP), the Director of the National Economic Council, and the Co-Chairs of the Gender Policy Council—shall: (a) reestablish a coordinated Government-wide initiative to promote diversity and inclusion in the Federal workforce, expand its scope to specifically include equity and accessibility, and coordinate its implementation with

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the provisions of Executive Order 13985 and the National Security Memo- randum on Revitalizing America’s Foreign Policy and National Security Workforce, Institutions, and Partnerships; (b) develop and issue a Government-wide Diversity, Equity, Inclusion, and Accessibility Strategic Plan (Government-wide DEIA Plan) within 150 days of the date of this order that updates the Government-wide plan required by section 2(b)(i) of Executive Order 13583. The Government-wide DEIA Plan shall be updated as appropriate and at a minimum every 4 years. The Government-wide DEIA Plan shall: (i) define standards of success for diversity, equity, inclusion, and accessibility efforts based on leading policies and practices in the public and private sectors; (ii) consistent with merit system principles, identify strategies to advance diversity, equity, inclusion, and accessibility, and eliminate, where applicable, barriers to equity, in Federal workforce functions, including: recruitment; hiring; background investigation; promotion; retention; performance evaluations and awards; professional development programs; mentoring programs or sponsorship initiatives; internship, fellowship, and apprenticeship programs; employee resource group and affinity group programs; temporary employee details and assignments; pay and compensation policies; benefits, including health benefits, retirement benefits, and employee services and work-life programs; disciplinary or adverse actions; reasonable accommodations for employees and applicants with disabilities; workplace policies to prevent gender-based violence (including domestic violence, stalking, and sexual violence); reasonable accommodations for employees who are members of religious minorities; and training, learning, and onboarding programs; (iii) include a comprehensive framework to address workplace harassment, including sexual harassment, which clearly defines the term ‘‘harassment’’; outlines policies and practices to prevent, report, respond to, and investigate harassment; promotes mechanisms for employees to report mis- conduct; encourages bystander intervention; and addresses training, education, and monitoring to create a culture that does not tolerate harassment or other forms of discrimination or retaliation; and (iv) promote a data-driven approach to increase transparency and accountability, which would build upon, as appropriate, the EEOC’s Management Directive 715 reporting process; (c) establish an updated system for agencies to report regularly on progress in implementing Agency DEIA Strategic Plans (as described in section 4(b) of this order) and in meeting the objectives of this order. New reporting requirements should be aligned with ongoing reporting established by Execu- tive Order 13985 and the National Security Memorandum on Revitalizing America’s Foreign Policy and National Security Workforce, Institutions, and Partnerships. Agency reports on actions taken to meet the objectives of this order shall include measurement of improvements, analysis of the effectiveness of agency programs, and descriptions of lessons learned. The Director of OPM and the Deputy Director for Management of OMB shall support agencies in developing workforce policies and practices designed to advance diversity, equity, inclusion, and accessibility throughout agencies by, for example, providing updated guidance and technical assistance to ensure that agencies consistently improve, evaluate, and learn from their workforce practices; (d) pursue opportunities to consolidate implementation efforts and reporting requirements related to advancing diversity, equity, inclusion, and accessibility established through related or overlapping statutory mandates, Presi- dential directives, and regulatory requirements; and

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(e) support, coordinate, and encourage agency efforts to conduct research, evaluation, and other evidence-building activities to identify leading practices, and other promising practices, for broadening participation and opportunities for advancement in Federal employment, and to assess and promote the benefits of diversity, equity, inclusion, and accessibility for Federal performance and operations and barriers to achieving these goals. Agencies should use the capabilities of their evaluation officers and chief statistical officers and requirements under the Foundations for Evidence-Based Policy- making Act of 2018, Public Law 115–435, to advance this goal. Sec. 4. Responsibilities of Executive Departments and Agencies. The head of each agency shall make advancing diversity, equity, inclusion, and accessibility a priority component of the agency’s management agenda and agency strategic planning. The head of each agency shall implement the Government- wide DEIA Plan prepared pursuant to section 3 of this order and such other related guidance as issued from time to time by the Director of OPM or the Deputy Director for Management of OMB. In addition, the head of each agency shall: (a) within 100 days of the date of this order, submit to the APDP, the Director of OPM, and the Deputy Director for Management of OMB a preliminary assessment of the current state of diversity, equity, inclusion, and accessibility in the agency’s human resources practices and workforce composition. In conducting such assessment, the head of each agency should: (i) assess whether agency recruitment, hiring, promotion, retention, professional development, performance evaluations, pay and compensation policies, reasonable accommodations access, and training policies and practices are equitable; (ii) take an evidence-based and data-driven approach to determine whether and to what extent agency practices result in inequitable employment outcomes, and whether agency actions may help to overcome systemic societal and organizational barriers; (iii) assess the status and effects of existing diversity, equity, inclusion, and accessibility initiatives or programs, and review the amount of institutional resources available to support human resources activities that advance the objectives outlined in section 1 of this order; and (iv) identify areas where evidence is lacking and propose opportunities to build evidence to advance diversity, equity, inclusion, and accessibility and address those gaps identified; (b) within 120 days of the issuance of the Government-wide DEIA Plan, and annually thereafter, develop and submit to the APDP, the Director of OPM, and the Deputy Director for Management of OMB an Agency Diver- sity, Equity, Inclusion, and Accessibility Strategic Plan (Agency DEIA Stra- tegic Plan), as described by section 3(b) of Executive Order 13583 and as modified by this order. Agency DEIA Strategic Plans should identify actions to advance diversity, equity, inclusion, and accessibility in the workforce and remove any potential barriers to diversity, equity, inclusion, and accessibility in the workforce identified in the assessments described in subsection (a) of this section. Agency DEIA Strategic Plans should also include quarterly goals and actions to advance diversity, equity, inclusion, and accessibility initiatives in the agency workforce and in the agency’s workplace culture; (c) on an annual basis, report to the President on the status of the agency’s efforts to advance diversity, equity, inclusion, and accessibility within the agency, and the agency’s success in implementing the Agency DEIA Strategic Plan. Consistent with guidance issued as part of the Government-wide DEIA Plan, the agency head shall also make available to the general public information on efforts to advance diversity, equity, inclusion, and accessibility in the agency’s workforce; (d) oversee, and provide resources and staffing to support, the implementation of the Agency DEIA Strategic Plan;

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(e) enhance diversity, equity, inclusion, and accessibility within the agency, in collaboration with the agency’s senior officials and consistent with applicable law and merit system principles; (f) seek opportunities to establish a position of chief diversity officer or diversity and inclusion officer (as distinct from an equal employment opportunity officer), with sufficient seniority to coordinate efforts to promote diversity, equity, inclusion, and accessibility within the agency; (g) strongly consider for employment, to the extent permitted by applicable law, qualified applicants of any background who have advanced diversity, equity, inclusion, and accessibility in the workplace; and (h) in coordination with OMB, seek opportunities to ensure alignment across various organizational performance planning requirements and efforts by integrating the Agency DEIA Strategic Plan and diversity, equity, inclusion, and accessibility goals into broader agency strategic planning efforts described in 5 U.S.C. 306 and the agency performance planning described in 31 U.S.C. 1115. Sec. 5. Data Collection. (a) The head of each agency shall take a data- driven approach to advancing policies that promote diversity, equity, inclusion, and accessibility within the agency’s workforce, while protecting the privacy of employees and safeguarding all personally identifiable information and protected health information. (b) Using Federal standards governing the collection, use, and analysis of demographic data (such as OMB Directive No. 15 (Standards for Maintain- ing, Collecting, and Presenting Federal Data on Race and Ethnicity) and OMB Memorandum M–14–06 (Guidance for Providing and Using Administra- tive Data for Statistical Purposes)), the head of each agency shall measure demographic representation and trends related to diversity in the agency’s overall workforce composition, senior workforce composition, employment applications, hiring decisions, promotions, pay and compensation, professional development programs, and attrition rates. (c) The Director of OPM, the Chair of the EEOC, and the Deputy Director for Management of OMB shall review existing guidance, regulations, policies, and practices (for purposes of this section, ‘‘guidance’’) that govern agency collection of demographic data about Federal employees, and consider issuing, modifying, or revoking such guidance in order to expand the collection of such voluntarily self-reported data and more effectively measure the representation of underserved communities in the Federal workforce. In revisiting or issuing any such guidance, the Director of OPM, the Chair of the EEOC, and the Deputy Director for Management of OMB shall take steps to promote the protection of privacy and to safeguard personally identifiable information; facilitate intersectional analysis; and reduce duplicative reporting requirements. In considering whether to revisit or issue such guidance, the Director of OPM, the Chair of the EEOC, and the Deputy Director for Management of OMB shall consult with the Chief Statistician of the United States, the Chair of the Chief Data Officers Council, and the Co- Chairs of the Interagency Working Group on Equitable Data established in section 9 of Executive Order 13985. (d) The head of each agency shall implement any such revised guidance issued pursuant to subsection (c) of this section to expand the collection of voluntarily self-reported demographic data. The head of each agency shall also take steps to ensure that data collection and analysis practices allow for the capture or presence of multiple attributes and identities to ensure an intersectional analysis. (e) The head of each agency shall collect and analyze voluntarily self- reported demographic data regarding the membership of advisory committees, commissions, and boards in a manner consistent with applicable law, including privacy and confidentiality protections, and with statistical standards where applicable. For agencies that have external advisory committees, commissions, or boards to which agencies appoint members, agency heads shall

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pursue opportunities to increase diversity, equity, inclusion, and accessibility on such committees, commissions, and boards. Sec. 6. Promoting Paid Internships. (a) The Director of OPM and the Deputy Director for Management of OMB shall issue guidance to agencies and the Executive Office of the President with respect to internships and similar programs within the Federal Government, including guidance on how to: (i) increase the availability of paid internships, fellowships, and apprenticeships, and reduce the practice of hiring interns, fellows, and apprentices who are unpaid; (ii) ensure that internships, fellowships, and apprenticeships serve as a supplement to, and not a substitute for, the competitive hiring process; (iii) ensure that internships, fellowships, and apprenticeships serve to develop individuals’ talent, knowledge, and skills for careers in government service; (iv) improve outreach to and recruitment of individuals from underserved communities for internship, fellowship, and apprenticeship programs; and (v) ensure all interns, fellows, and apprentices with disabilities, including applicants and candidates, have a process for requesting and obtaining reasonable accommodations to support their work in the Federal Govern- ment, without regard to whether such individuals are covered by the Rehabilitation Act of 1973, Public Law 93–112. (b) The head of each agency shall, as part of the annual reporting process described in section 4(c) of this order, measure and report on the agency’s progress with respect to the matters described in subsection (a) of this section. Sec. 7. Partnerships and Recruitment. (a) The Director of the Office of Science and Technology Policy (OSTP), the Director of OPM, and the Deputy Director for Management of OMB, in consultation with the Chair of the EEOC, shall coordinate a Government-wide initiative to strengthen partnerships (Partnerships Initiative) to facilitate recruitment for Federal employment opportunities of individuals who are members of underserved communities. To carry out the Partnerships Initiative, the Director of OSTP, the Director of OPM, and the Deputy Director for Management of OMB shall take steps to increase diversity in the Federal employment pipeline by supporting and guiding agencies in building or strengthening partnerships with Historically Black Colleges and Universities, including Historically Black Graduate Institutions; Hispanic-Serving Institutions; Tribal Colleges and Universities; Native American-serving, nontribal institutions; Asian American and Pacific Islander-serving institutions; Tribally controlled colleges and universities; Alaska Native-serving and Native Hawaiian-serving institutions; Predominantly Black Institutions; women’s colleges and universities; State vocational rehabilitation agencies that serve individuals with disabilities; disability services offices at institutions of higher education; organizations dedicated to serving veterans; public and non-profit private universities serving a high percentage of economically disadvantaged students or first-generation college or graduate students; community colleges and technical schools; and community-based organizations that are dedicated to serving and working with underserved communities, including return- to-work programs, programs that provide training and support for older adults seeking employment, programs serving formerly incarcerated individuals, centers for independent living, disability rights organizations, and organizations dedicated to serving LGBTQ+ individuals. (b) The head of each agency shall work with the Director of OSTP, the Director of OPM, and the Deputy Director for Management of OMB to make employment, internship, fellowship, and apprenticeship opportunities available through the Partnerships Initiative, and shall take steps to enhance recruitment efforts through the Partnerships Initiative, as part of the agency’s overall recruitment efforts. The head of each agency shall, as part of the reporting processes described in sections 3(c) and 4(c) of this order, measure and report on the agency’s progress on carrying out this subsection.

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Sec. 8. Professional Development and Advancement. (a) The Director of OPM, in consultation with the Deputy Director for Management of OMB, shall issue detailed guidance to agencies for tracking demographic data relating to participation in leadership and professional development programs and development opportunities offered or sponsored by agencies and the rate of the placement of participating employees into senior positions in agencies, in a manner consistent with privacy and confidentiality protections and statistical limitations. (b) The head of each agency shall implement the guidance issued pursuant to subsection (a) of this section, and shall use demographic data relating to participation in professional development programs to identify ways to improve outreach and recruitment for professional development programs offered or sponsored by the agency, consistent with merit system principles. The head of each agency shall also address any barriers to access to or participation in such programs faced by members of underserved communities. Sec. 9. Training and Learning. (a) The head of each agency shall take steps to implement or increase the availability and use of diversity, equity, inclusion, and accessibility training programs for employees, managers, and leadership. Such training programs should enable Federal employees, managers, and leaders to have knowledge of systemic and institutional racism and bias against underserved communities, be supported in building skillsets to promote respectful and inclusive workplaces and eliminate workplace harassment, have knowledge of agency accessibility practices, and have increased understanding of implicit and unconscious bias. (b) The Director of OPM and the Chair of the EEOC shall issue guidance and serve as a resource and repository for best practices for agencies to develop or enhance existing diversity, equity, inclusion, and accessibility training programs. Sec. 10. Advancing Equity for Employees with Disabilities. (a) As established in Executive Order 13548 of July 26, 2010 (Increasing Federal Employment of Individuals with Disabilities), the Federal Government must become a model for the employment of individuals with disabilities. Because a workforce that includes people with disabilities is a stronger and more effective workforce, agencies must provide an equitable, accessible, and inclusive environment for employees with disabilities. In order for Federal employees and applicants with disabilities to be assessed on their merits, accessible information technologies must be provided and, where needed, reasonable accommodations must be available that will allow qualified individuals with disabilities to perform the essential functions of their positions and access advancement opportunities. To that end, the relevant agencies shall take the actions set forth in this section. (b) The Secretary of Labor, the Director of OPM, the Chair of the EEOC, the Deputy Director for Management of OMB, and the Executive Director of the Architectural and Transportation Barriers Compliance Board (Access Board), in consultation with the Administrator of General Services, as appropriate, shall coordinate with agencies to: (i) support the Federal Government’s effort to provide people with disabilities equal employment opportunities and take affirmative actions within the Federal Government to ensure that agencies fully comply with applicable laws, including sections 501, 504, and 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 791, 794, 794d); (ii) assess current practices in using Schedule A hiring authority to employ people with disabilities in the Federal Government, and evaluate opportunities to enhance equity in employment opportunities and financial security for employees with disabilities through different practices or guidance on the use of Schedule A hiring authority; and (iii) ensure that: (A) applicants and employees with disabilities have access to information about and understand their rights regarding disability self-identification;

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(B) applicants and employees with disabilities have access to information about Schedule A hiring authority for individuals with disabilities; (C) applicants and employees with disabilities have access to information about, understand their rights to, and may easily request reasonable accommodations, workplace personal assistance services, and accessible information and communication technology; (D) the process of responding to reasonable accommodation requests is timely and efficient; (E) the processes and procedures for appealing the denial of a reasonable accommodation request are timely and efficient; and (F) all information and communication technology and products developed, procured, maintained, or used by Federal agencies are accessible and usable by employees with disabilities consistent with all standards and technical requirements of the Rehabilitation Act of 1973. (c) To ensure that all Federal office buildings and workplaces are accessible to employees with disabilities, the Administrator of General Services, the Director of OPM, the Deputy Director for Management of OMB, and the Executive Director of the Access Board shall work with Federal agencies to ensure that Federal buildings and leased facilities comply with the accessibility standards of the Architectural Barriers Act of 1968, Public Law 90– 480, and related standards. (d) Beyond existing duties to comply with the Architectural Barriers Act of 1968 and related standards, the head of each agency shall maximize the accessibility of the physical environment of the agency’s workplaces, consistent with applicable law and the availability of appropriations, so as to reduce the need for reasonable accommodations, and provide periodic notice to all employees that complaints concerning accessibility barriers in Federal buildings can be filed with the Access Board. (e) The Secretary of Defense and the Secretary of Labor shall review the use of the Workforce Recruitment Program (WRP) for college students and recent graduates with disabilities and take steps, as appropriate and consistent with applicable law, to expand the WRP. The Secretaries shall submit a report to the APDP describing any steps taken pursuant to this subsection and providing recommendations for any Presidential, administrative, or congressional actions to further expand and strengthen the program and expand job opportunities. Sec. 11. Advancing Equity for LGBTQ+ Employees. (a) As established in Executive Order 13988, it is the policy of my Administration to prevent and combat discrimination on the basis of gender identity or sexual orientation. Each Federal employee should be able to openly express their sexual orientation, gender identity, and gender expression, and have these identities affirmed and respected, without fear of discrimination, retribution, or disadvantage. To that end, the relevant agencies shall take the actions set forth in this section. (b) The head of each agency shall, in coordination with the Director of OPM, ensure that existing employee support services equitably serve LGBTQ+ employees, including, as appropriate, through the provision of supportive services for transgender and gender non-conforming and non- binary employees who wish to legally, medically, or socially transition. (c) To ensure that LGBTQ+ employees (including their beneficiaries and their eligible dependents), as well as LGBTQ+ beneficiaries and LGBTQ+ eligible dependents of all Federal employees, have equitable access to healthcare and health insurance coverage: (i) the Director of OPM shall take actions to promote equitable healthcare coverage and services for enrolled LGBTQ+ employees (including their beneficiaries and their eligible dependents), LGBTQ+ beneficiaries, and LGBTQ+ eligible dependents, including coverage of comprehensive gender- affirming care, through the Federal Employees Health Benefits Program; and

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(ii) the Secretary of Defense shall take actions to promote equitable healthcare coverage and services for LGBTQ+ members of the uniformed services (including their beneficiaries and their eligible dependents), LGBTQ+ beneficiaries, and LGBTQ+ eligible dependents, including coverage of comprehensive gender-affirming care, through the Military Health System. (d) To ensure that LGBTQ+ employees (including their beneficiaries and their eligible dependents), LGBTQ+ beneficiaries, and LGBTQ+ eligible dependents have equitable access to all other insurance coverage and employee benefits, the head of each agency shall, in coordination with the Director of OPM, ensure that the Federal Government equitably provides insurance coverage options and employee benefits for LGBTQ+ employees (including their beneficiaries and their eligible dependents), LGBTQ+ beneficiaries, and LGBTQ+ eligible dependents, including long-term care insurance, sick leave, and life insurance. This includes ensuring that Federal benefits, programs, and services recognize the diversity of family structures. (e) To ensure that all Federal employees have their respective gender identities accurately reflected and identified in the workplace: (i) the head of each agency shall, in coordination with the Director of OPM, take steps to foster an inclusive environment where all employees’ gender identities are respected, such as by including, where applicable, non-binary gender marker and pronoun options in Federal hiring, employment, and benefits enrollment forms; (ii) the Secretary of Commerce, acting through the Director of the National Institute of Standards and Technology, shall update, as appropriate and in consultation with any other relevant agencies, any relevant Federal employee identification standards to ensure that Federal systems for issuing employee identity credentials account for the needs of transgender and gender non-conforming and non-binary employees. The Secretary, in coordination with any other relevant agencies, shall take steps to reduce any unnecessary administrative burden for transgender and gender non- conforming and non-binary employees to update their names, photographs, gender markers, and pronouns on federally issued employee identity credentials, where applicable; and (iii) the head of each agency shall, in consultation with the Director of OPM, update Federal employee identification standards to include non- binary gender markers where gender markers are required in employee systems and profiles, and shall take steps to reduce any unnecessary administrative burden for transgender and gender non-conforming and non-binary employees to update their gender markers and pronouns in employee systems and profiles, where applicable. (f) To support all Federal employees in accessing workplace facilities aligned with their gender identities, the head of each agency shall explore opportunities to expand the availability of gender non-binary facilities and restrooms in federally owned and leased workplaces. (g) The Director of National Intelligence, in consultation with the Director of OPM and the heads of agencies, shall take steps to mitigate any barriers in security clearance and background investigation processes for LGBTQ+ employees and applicants, in particular transgender and gender non-conforming and non-binary employees and applicants. (h) The Director of OPM shall review and update, if necessary, OPM’s 2017 Guidance Regarding the Employment of Transgender Individuals in the Federal Workplace. Sec. 12. Pay Equity. Many workers continue to face racial and gender pay gaps, and pay inequity disproportionately affects women of color. Accord- ingly: (a) The Director of OPM shall review Government-wide regulations and guidance and, as appropriate and consistent with applicable law, in order

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to address any pay inequities and advance equal pay, consider whether to: (i) work with agencies to review, and revise if necessary, job classification and compensation practices; and (ii) prohibit agencies from seeking or relying on an applicant’s salary history during the hiring process to set pay or when setting pay for a current employee, unless salary history is raised without prompting by the applicant or employee. (b) The head of each agency that administers a pay system other than one established under title 5 of the United States Code shall review the agency’s regulations and guidance and, as appropriate and consistent with applicable law, revise compensation practices in order to address any pay inequities and advance equal pay. Agencies should report to OPM any revisions to compensation practices made to implement this direction. (c) The Director of OPM shall submit a report to the President describing any changes to Government-wide and agency-specific compensation practices recommended and adopted pursuant to this order. Sec. 13. Expanding Employment Opportunities for Formerly Incarcerated Individuals. To support equal opportunity for formerly incarcerated individuals who have served their terms of incarceration and to support their ability to fully reintegrate into society and make meaningful contributions to our Nation, the Director of OPM shall evaluate the existence of any barriers that formerly incarcerated individuals face in accessing Federal employment opportunities and any effect of those barriers on the civil service. As appropriate, the Director of OPM shall also evaluate possible actions to expand Federal employment opportunities for formerly incarcerated individuals, including the establishment of a new hiring authority, and shall submit a report to the President containing the results of OPM’s evaluation within 120 days of the date of this order. Sec. 14. Delegation of Authority. The Director of OPM is hereby delegated the authority of the President under sections 3301 and 3302 of title 5, United States Code, for purposes of carrying out the Director’s responsibilities under this order. Sec. 15. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) authority granted by law to an executive department or agency, or the head thereof; or (ii) functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) Independent agencies are strongly encouraged to comply with the provisions of this order.

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(d) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE, June 25, 2021.

[FR Doc. 2021–14127 Filed 6–29–21; 8:45 am] Billing code 3295–F1–P

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Rules and Regulations Federal Register Vol. 86, No. 123

Wednesday, June 30, 2021

This section of the FEDERAL REGISTER requested by States, the able-bodied that the area in which the individuals contains regulatory documents having general adult without dependents (ABAWD) reside: applicability and legal effect, most of which time limit in areas that have an (i) Has an unemployment rate of over are keyed to and codified in the Code of unemployment rate of over 10 percent 10 percent; or Federal Regulations, which is published under or a lack of sufficient jobs. In addition, (ii) Does not have a sufficient number 50 titles pursuant to 44 U.S.C. 1510. the 2019 Final Rule limited carryover of of jobs to provide employment for the The Code of Federal Regulations is sold by ABAWD discretionary exemptions. individuals. the Superintendent of Documents. In the October 18, 2020, decision in (2) Required data. The State agency District of Columbia, et al., v. United may submit whatever data it deems States Department of Agriculture, et al., appropriate to support its request. DEPARTMENT OF AGRICULTURE No. 20–cv–00119–BAH (D.D.C. 2020), However, to support waiver requests the U.S. District Court for the District of based on unemployment rates or labor Food and Nutrition Service Columbia vacated the 2019 Final Rule. force data, States must submit data that This rule is being promulgated to relies on standard Bureau of Labor 7 CFR Part 273 revert the language of the regulations Statistics (BLS) data or methods. A non- [FNS–2021–0012] amended by the 2019 Final Rule to that exhaustive list of the kinds of data a which existed prior to the 2019 Final State agency may submit follows: RIN 0584–AE87 Rule. This rule is not subject to the (i) To support a claim of Supplemental Nutrition Assistance requirement to provide notice and an unemployment over 10 percent, a State Program: Rescission of Requirements opportunity for public comments agency may submit evidence that an for Able-Bodied Adults Without because it falls under the good cause area has a recent 12 month average Dependents: Notice of Vacatur exception at 5 U.S.C. 553(b)(B). The unemployment rate over 10 percent; a good cause exception is satisfied when recent three month average AGENCY: Food and Nutrition Service notice and comment is ‘‘impracticable, unemployment rate over 10 percent; or (FNS), USDA. unnecessary, or contrary to the public an historical seasonal unemployment ACTION: Final rule. interest.’’ Id. The 2019 Final Rule has rate over 10 percent; or already been vacated by a court of law. (ii) To support a claim of lack of SUMMARY: This final rule removes from This rule is simply an administrative sufficient jobs, a State may submit the Code of Federal Regulations the step that reverts the language of the evidence that an area: Is designated as final rule published on December 5, relevant regulations to reflect the court’s a Labor Surplus Area (LSA) by the 2019, titled ‘‘Supplemental Nutrition order vacating the 2019 Final Rule. Department of Labor’s Employment and Assistance Program: Requirements for Additionally, because this rule Training Administration (ETA); is Able-Bodied Adults Without implements a court order already in determined by the Department of Dependents.’’ This action responds to a effect, FNS has good cause to waive the Labor’s Unemployment Insurance decision of the U.S. District Court for 30-day effective date under 5 U.S.C. Service as qualifying for extended the District of Columbia that vacated the 553(d). unemployment benefits; has a low and rule. declining employment-to-population List of Subjects in 7 CFR Part 273 DATES: The action is effective June 30, ratio; has a lack of jobs in declining 2021. However, the court order had Able-bodied adults without occupations or industries; is described legal effect immediately upon its filing dependents, Administrative practice in an academic study or other on October 18, 2020. and procedures, Employment, Indian publications as an area where there are Reservations, Time limit, U.S. ADDRESSES: SNAP Program lack of jobs; has a 24-month average Territories, Waivers, Work Development Division, Food and unemployment rate 20 percent above Requirements. Nutrition Service, USDA, 1320 the national average for the same 24- Braddock Place, Alexandria, Virginia Accordingly 7 CFR part 273 is month period. This 24-month period 22314. amended as follows: may not be any earlier than the same 24- month period the ETA uses to designate FOR FURTHER INFORMATION CONTACT: PART 273—CERTIFICATION OF LSAs for the current fiscal year. Arpan Dasgupta, Certification Policy ELIGIBLE HOUSEHOLDS (3) Waivers that are readily Branch, Program Development Division, approvable. FNS will approve State Food and Nutrition Service, 703–305– ■ 1. The authority citation for part 273 agency waivers where FNS confirms: 1623, [email protected]. continues to read as follows: (i) Data from the BLS or the BLS SUPPLEMENTARY INFORMATION: On Authority: 7 U.S.C. 2011–2036. cooperating agency that shows an area December 5, 2019, the Food and ■ 2. In § 273.24, revise paragraphs (f) has a most recent 12 month average Nutrition Service (FNS) published a and (h) to read as follows: unemployment rate over 10 percent; final rule titled ‘‘Supplemental (ii) Evidence that the area has been Nutrition Assistance Program: § 273.24 Time limit for able-bodied adults. designated a Labor Surplus Area by the Requirements for Able-Bodied Adults * * * * * ETA for the current fiscal year; or Without Dependents’’ (84 FR 66782) (f) Waivers—(1) General. On the (iii) Data from the BLS or the BLS (hereinafter ‘‘2019 Final Rule’’). The request of a State agency, FNS may cooperating agency that an area has a 24 2019 Final Rule revised conditions waive the time limit for a group of month average unemployment rate that under which USDA would waive, when individuals in the State if we determine exceeds the national average by 20

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percent for any 24-month period no FNS will reduce the estimated number • Mail: Director, Product earlier than the same period the ETA of exemptions allocated to the State Administration and Standards Division, uses to designate LSAs for the current agency for the subsequent fiscal year by Risk Management Agency (RMA), US fiscal year. the corresponding number. Department of Agriculture, P.O. Box (4) Effective date of certain waivers. In * * * * * 419205, Kansas City, MO 64133–6205. areas for which the State certifies that In your comment, specify docket ID data from the BLS or the BLS Cynthia Long, FCIC–21–0005. cooperating agency show a most recent Acting Administrator, Food and Nutrition Comments will be available for 12 month average unemployment rate Service. viewing online at www.regulations.gov. over 10 percent; or the area has been [FR Doc. 2021–14045 Filed 6–29–21; 8:45 am] designated as a Labor Surplus Area by BILLING CODE 3410–30–P FOR FURTHER INFORMATION CONTACT: the Department of Labor’s Employment Francie Tolle; telephone (816) 926– and Training Administration for the 7829; or email [email protected]. current fiscal year, the State may begin DEPARTMENT OF AGRICULTURE Persons with disabilities who require to operate the waiver at the time the alternative means for communication waiver request is submitted. FNS will Federal Crop Insurance Corporation should contact the USDA Target Center contact the State if the waiver must be at (202) 720–2600 or 844–433–2774 modified. 7 CFR Parts 407 and 457 (toll-free nationwide). (5) Duration of waiver. In general, [Docket ID FCIC–21–0005] waivers will be approved for one year. SUPPLEMENTARY INFORMATION: The duration of a waiver should bear RIN 0563–AC74 Background some relationship to the documentation provided in support of the waiver Area Risk Protection Insurance FCIC serves America’s agricultural request. FNS will consider approving Regulations and Common Crop producers through effective, market- waivers for up to one year based on Insurance Policy Basic Provisions based risk management tools to documentation covering a shorter AGENCY: Federal Crop Insurance strengthen the economic stability of period, but the State agency must show Corporation, U.S. Department of agricultural producers and rural that the basis for the waiver is not a Agriculture (USDA). communities. The Risk Management seasonal or short term aberration. We Agency (RMA) administers the FCIC ACTION: Final rule with request for reserve the right to approve waivers for regulations. FCIC is committed to comments. a shorter period at the State agency’s increasing the availability and request or if the data is insufficient. We SUMMARY: The Federal Crop Insurance effectiveness of Federal crop insurance reserve the right to approve a waiver for Corporation (FCIC) amends the Area as a risk management tool. Approved a longer period if the reasons are Risk Protection Insurance (ARPI) Insurance Providers (AIPs) sell and compelling. Regulations and Common Crop service Federal crop insurance policies (6) Areas covered by waivers. States Insurance Policy (CCIP), Basic in every state through a public-private may define areas to be covered by Provisions. The intended effect of this partnership. FCIC reinsures the AIPs waivers. We encourage State agencies to action is to improve unit provisions and who share the risks associated with submit data and analyses that organic farming practice provisions, catastrophic losses due to major weather correspond to the defined area. If revise the definition of veteran farmer or events. FCIC’s vision is to secure the corresponding data does not exist, State rancher, and clarify provisions. The future of agriculture by providing world agencies should submit data that changes to the policy made in this rule class risk management tools to rural corresponds as closely to the area as are applicable for the 2022 and America. possible. succeeding crop years for crops with a Federal crop insurance policies * * * * * contract change date on or after June 30, typically consist of the Basic Provisions, (h) Adjustments. FNS will make 2021. For all other crops, the changes to the Crop Provisions, the Special adjustments as follows: the policy made in this rule are Provisions, the Commodity Exchange (1) Caseload adjustments. FNS will applicable for the 2023 and succeeding Price Provisions, if applicable, other adjust the number of exemptions crop years. applicable endorsements or options, the estimated for a State agency under DATES: actuarial documents for the insured paragraph (g)(2) of this section during a agricultural commodity, the fiscal year if the number of SNAP Effective date: This final rule is effective June 30, 2021. Catastrophic Risk Protection recipients in the State varies from the Endorsement, if applicable, and the State’s caseload by more than 10 Comment date: We will consider comments that we receive by the close applicable regulations published in 7 percent, as estimated by FNS. CFR chapter IV. (2) Exemption adjustments. During of business August 30, 2021. FCIC may each fiscal year, FNS will adjust the consider the comments received and FCIC amends the ARPI Basic number of exemptions allocated to a may conduct additional rulemaking Provisions (7 CFR 407) and the CCIP State agency based on the number of based on the comments. Basic Provisions (7 CFR 457.8). The exemptions in effect in the State for the ADDRESSES: We invite you to submit changes to the policy made in this rule preceding fiscal year. comments on this rule. You may submit are applicable for the 2022 and (i) If the State agency does not use all comments by either of the following succeeding crop years for crops with a of its exemptions by the end of the fiscal methods, although FCIC prefers that you contract change date on or after June 30, year, FNS will increase the estimated submit comments electronically through 2021. For all other crops, the changes to number of exemptions allocated to the the Federal eRulemaking Portal: the policy made in this rule are State agency for the subsequent fiscal • Federal eRulemaking Portal: Go to applicable for the 2023 and succeeding year by the remaining balance. http://www.regulations.gov and search crop years. These changes resulted from (ii) If the State agency exceeds its for Docket ID FCIC–21–0005. Follow the public comments received on two final exemptions by the end of the fiscal year, instructions for submitting comments. rules with request for comment.

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Comments Related to 85 FR 38749– the two crops under different plans of the completed production worksheet in 38760 Published June 29, 2020 insurance is the first insured crop. their internal loss files to get the proper Response: FCIC understands the production amounts required to elect The first final rule with request for confusion when considering two crops the quality loss option. No change will comment was published in the Federal under different plans of insurance and be made. Register on June 29, 2020, (85 FR needing to determine which crop is the Comment: A commenter stated the 38749–38760) amending the ARPI first insured crop. As explained in the requirement to give the AIP notice of Regulations; CCIP Basic Provisions; and June 29, 2020, final rule, the change to loss to allow replacement of post-quality the Common Crop Insurance section 15(h)(7) was intended to address actual yields for the previous crop year Regulations, Coarse Grains Crop the provisions that each insured crop is is currently only stated within section Insurance Provisions (Coarse Grains required to follow to determine if the 36. Section 14 contains the Crop Provisions). Comments were double cropping requirements have requirements regarding notices a received from five commenters. Three been met. Given the nature of the issues producer must provide to their AIP in comments were from individuals, that can come up if the two crops are the event of a loss. As this is implied to whose comments were unrelated to the under different plans, FCIC is working be a function of the loss process, the rule. One comment was from an with stakeholders to determine what provisions should be in section 14 as insurance company. The last comment change is appropriate. Any related well, so the producer is provided proper was from a trade association. FCIC change to the regulation will be in a communication of this requirement. addressed editorial comments in the future rulemaking. Response: FCIC agrees and is adding final rule with request for comment Comment: A commenter had concerns a new section 14(b)(6) to state the published in the Federal Register on regarding the phrase ‘‘than determined producer must give the AIP a notice of November 30, 2020, (85 FR 76420– in 15(i)’’ in section 15(i)(3). As item loss due to an insurable cause in the 76428). The public comments and FCIC 15(i)(3) is situated within 15(i), it would year of the crop loss to replace post- responses regarding the Coarse Grains be clearer if the specific item(s) of this quality actual yields with actual yields Crop Provisions will be addressed in a subsection was referenced. prior to quality loss adjustment. future final rule. The non-editorial Response: FCIC agrees and has public comments received regarding the clarified this section is referencing the Comments Related to 85 FR 76420– 76428 Published November 30, 2020 June 29, 2020, final rule with request for introductory paragraph of section 15(i). comment related to the ARPI Basic Comment: Two commenters The second final rule with request for Provisions and CCIP Basic Provisions recommended removing the comment was published in the Federal and FCIC’s responses to the comments requirement of a notice of loss to be Register on November 30, 2020, (85 FR are as follows: filed in the quality loss provisions 76420–76428) amending the Area Risk Comment: In the definition of contained in section 36(a)(3). Protection Insurance (ARPI) ‘‘second crop’’ a commenter questioned Response: FCIC does not agree with Regulations; Common Crop Insurance whether the 60 percent actual the recommended change to remove the Policy (CCIP), Basic Provisions; production history (APH) penalty to the notice of loss provisions. The Quality Common Crop Insurance Regulations, first insured crop described in section Loss Option allows insureds to replace Sunflower Seed Crop Insurance 3(i) would be applicable when a cover post-quality adjustment production Provisions (Sunflower Seed Crop crop or volunteer crop is hayed, grazed, amounts with pre-quality adjustment Provisions); and Common Crop silaged, etc. production amounts in their APH Insurance Regulations, Dry Pea Crop database for a given crop year. Pre- Insurance Provisions (Dry Pea Crop Response: No changes were made to quality adjustment and post-quality Provisions). Comments were received the APH penalty within the June 29, adjustment production amounts are from three commenters. One from an 2020 rule; therefore, no additional entry items on the production individual who simply stated they changes will be made. worksheet that is completed by the AIP agreed with the rule, one from a trade Comment: A commenter asked for the during the loss adjustment process. To association, and one from an individual. term ‘‘otherwise harvested’’ to be maintain program integrity and actuarial The public comments received defined as it is a key term used in first soundness, it is pertinent to capture regarding the November 30, 2020, final and second crop provisions and consistent production amounts across rule with request for comment and determinations in prevented planting various crops and diverse farming FCIC’s responses to the comments are as situations. Currently, the term is defined operations. If there is not a notice of loss follows: in the Prevented Planting Standards filed when there is a quality loss, the Comment: A commenter noted section Handbook (PPSH), but this definition AIP will not be able to capture the 15(h)(7) deals with situations where a has changed in the past and is subject appropriate production amounts on the ‘‘planted’’ second crop follows a first to change again unless codified in the production worksheet that are required insured crop. As such, it would not be Rule. to elect the quality loss option. Without applicable to the provisions of section Response: FCIC does not agree and a notice of loss provision in place, AIPs 17(f)(4) in situations where both the 1st will not add the definition to the CCIP will be inconsistent when determining insured and 2nd crops were prevented Basic Provisions. The PPSH defines acceptable production records that may from planting nor where a 1st insured ‘‘otherwise harvested’’ as ‘‘harvested for qualify for the quality loss option, crop was planted and a 2nd crop was reasons other than for haying, grazing, resulting in varying AIP determinations prevented. It would therefore appear or cutting for silage, haylage, or baleage. and disparate treatment amongst appropriate to add the text of section This could be for grain, seed, etc.’’ No insureds. 15(h)(7) to section 17(f)(4). change will be made. When there is a payable loss, AIPs Response: As stated above, FCIC is Comment: A commenter suggested will submit the production report working with stakeholders to determine clarifying the double cropping entries to FCIC using the Policy what change is appropriate in section provisions and the example in section Acceptance Storage System (PASS). In a 15(h)(7) and plans to make 15(h)(7) as it is unclear as to whether situation where there is a quality loss, corresponding changes in section there is a precedence based on which of but not a payable loss, AIPs will have 17(f)(4). Any related change to the

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regulation will be in a future Comment: A commenter disagreed Section 1—FCIC is revising the rulemaking. with the change in section 17(f)(8) and definition of ‘‘acreage reporting date’’ to Comment: A commenter noted in stated it negatively impacted farmers in replace the term ‘‘actuarial documents’’ section 17(e)(2) that an ‘‘uninsured California by eliminating prevented with ‘‘Special Provisions.’’ This change second crop’’ would include: (1) A planting payments to farmers who is being made to be consistent with the second crop planted after the Late leased land that is fallowed, unless the CCIP Basic Provisions. Planting Period (LPP) or the Final Plant fallowed land is farmed the next two FCIC is removing the definition of Date (if a LPP was not applicable); and years, regardless of water availability ‘‘NASS’’ (National Agricultural (2) A second crop which an insured and other challenges inherent in Statistics Service) for greater elected not to insure under the first and production agriculture. The land will be transparency regarding the data used to second crop provisions in order to eligible only if the entire leased acreage determine area yield guarantees and preserve a 100% indemnity for the 1st is in production in at least one year out indemnities, because FCIC no longer insured crop. The commenter had of four. A commenter suggested to phase uses NASS data but instead RMA data. program vulnerability concerns and in the new ‘‘1 in 4’’ requirement over 4 In addition to removing the definition, suggested a clarification or that the years to allow farmers who use FCIC is removing any references to provision be removed. The situation is prevented planting coverage sufficient NASS data throughout the provisions. rare, and the proposed remedy is time to modify existing farming Therefore, FCIC is removing paragraph unnecessary and has added significant practices as needed (e.g., install 15(e) and redesignating paragraphs (f) complexity to the provision, along with irrigation systems, acquire water, and and (g) as (e) and (f). increasing the likelihood the provisions secure related financing). CCIP Basic Provisions will apply to situations other than those Response: The ‘‘1 in 4’’ requirement intended. This is due to the provision Other changes applicable only to the applies specifically to physical acreage CCIP Basic Provisions (7 CFR 457.8) are: applying to every ‘‘uninsured 2nd crop’’ (land); not the producer, the lease, or following a failed first insured crop. Section 34—FCIC is adding a new the farming operation. No change will section 34(a)(4)(ix) to allow Crop Response: This change was made to be made. address the concern that in this Provisions to have enterprise units (EU) In addition to the changes described situation the same physical acres are by practice, type, or other insurance above, FCIC has made the following subtracted twice from the overall features. In 2018, FCIC developed the changes: prevented planting eligible acres. This multi-county enterprise unit (MCEU) occurrence is extremely rare, but in ARPI Basic Provisions and CCIP Basic endorsement. For the 2020 crop year, years where widespread prevented Provisions EUs by cropping practice for following planting is prevalent, such as in 2019, another crop and not following another For both ARPI Basic Provisions (7 the provision provides important crop (FAC/NFAC) were made available CFR 407) and CCIP Basic Provisions (7 coverage for producers. No change will in select grain sorghum and soybean CFR 457.8), FCIC is revising the be made. counties. For the 2021 crop year, when Comment: A commenter definition of ‘‘veteran farmer or a producer elects and fails to qualify for recommended adding the phrase rancher’’ in section 1 to allow the EUs on both irrigation or cropping ‘‘practice’’ in section 17(f)(1)(iv) like spouse’s veteran status not to impact practices they have an additional option section 17(f)(1)(i). whether a person is considered a to keep EU on practice that meets EU Response: FCIC will revise section veteran farmer or rancher. The qualifications and have basic or optional 17(f)(1)(iv) for consistency. provisions define ‘‘person’’ as an units on the other practice that does not Comment: A commenter suggested individual, partnership, association, meet EU qualifications. For example, a clarifying in section 17(f)(1) if proof of corporation, estate, trust, or other legal producer elects EU for both FAC and the rotation alone is sufficient or entity, and wherever applicable, a State NFAC cropping practices, but does not whether both proof of the rotation and or a political subdivision or agency of a qualify for EU for both practices. If inputs are required regarding the phrase State. The word ‘‘person’’ does not discovery for not qualifying is on or ‘‘or that acreage was part of a crop include the United States Government before the acreage reporting date, the rotation.’’ or any agency thereof. The provisions producer has an additional option to Response: FCIC believes the wording state all entity substantial beneficial elect an EU on one cropping practice is clear regarding the phrase ‘‘or that interest holders must qualify and basic or optional units on the other acreage was part of a crop rotation.’’ The individually as a veteran. The change to cropping practice. FCIC continues to word ‘‘or’’ being used at the beginning the definition of ‘‘veteran farmer or receive requests from stakeholders to of this phrase means that proof of rancher’’ will clarify the exception that add the EU structure for a crop or allow rotation alone is sufficient. No change allows a legal entity, comprised only of the EU structure on a different basis will be made. the veteran and their spouse, to qualify than currently allowed. FCIC continues Comment: Regarding section 17(f)(8), as a veteran farmer or rancher when a to review these requests individually to a commenter requested a system be in qualifying veteran has a non-veteran determine the feasibility of place to support the increase in seeking spouse. For example, a veteran starts implementing the EU request. With this and verifying this information for farming and forms a corporation with change, FCIC will have the flexibility to policies that have transferred between their non-veteran spouse. The veteran make these subsequent EU changes in agents and AIPs. meets the veteran farmer or rancher individual Crop Provisions. Response: FCIC encourages producers requirements, but the spouse is a non- Section 37—FCIC is revising sections to work with their agent in providing veteran. With this change, their 37(c) and (e) to allow a producer to documentation. AIPs have access to data corporation would qualify as a veteran report acreage as certified organic, or as that can assist with verifying insurance farmer or rancher. acreage in transition to organic, when history. There are other methods such as the producer certifies that they have ARPI Basic Provisions satellite imagery that may be beneficial requested, in writing, a written when proving if a crop was planted and Other changes applicable only to the certification or other written harvested. ARPI Basic Provisions (7 CFR 407) are: documentation from a certifying agent

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on or before the acreage reporting date publication to allow for Congressional of the National Environmental Policy (ARD). The producer may notify their review. This rule is not a major rule Act (NEPA, 42 U.S.C. 4321–4347) and insurance agent by phone, email, text, or under the Congressional Review Act, as the regulations of the Council on other electronic communication defined by 5 U.S.C. 804(2). Therefore, Environmental Quality (40 CFR parts method. Following the notification, the this final rule is effective June 30, 2021. 1500–1508). FCIC conducts programs organic plan or certificate must be in Although not required by APA or any and activities that have been determined place prior to coverage ending in other law, FCIC has chosen to request to have no individual or cumulative accordance with the policy. The comments on this rule. effect on the human environment. As producer’s acreage will remain insured specified in 7 CFR 1b.4, FCIC is under the practice reported on the Executive Orders 12866 and 13563 categorically excluded from the acreage reporting date unless they have Executive Order 12866, ‘‘Regulatory preparation of an Environmental a loss. If the producer has a loss and Planning and Review,’’ and Executive Analysis or Environmental Impact does not have a certificate or plan in Order 13563, ‘‘Improving Regulation Statement unless the FCIC Manager place at the time the claim is finalized, and Regulatory Review,’’ direct agencies (agency head) determines that an action then the acreage will be insured under to assess all costs and benefits of may have a significant environmental the practice for which it qualifies. available regulatory alternatives, and if effect. The FCIC Manager has Currently, policy requires producers regulation is necessary, to select determined this rule will not have a with certified organic or acreage in regulatory approaches that maximize significant environmental effect. transition to organic to have written net benefits (including potential Therefore, FCIC will not prepare an certification or written documentation economic, environmental, public health environmental assessment or from a certifying agent by the ARD and safety effects, distributive impacts, environmental impact statement for this which shows an organic plan is in effect and equity). Executive Order 13563 action and this rule serves as for the acreage. Procedures allow that a emphasized the importance of documentation of the programmatic certificate and plan must be in place quantifying both costs and benefits, of environmental compliance decision. each year to qualify for organic or reducing costs, of harmonizing rules, Executive Order 12988 organic transitional practices. A and of promoting flexibility. The previous certificate or plan may be used requirements in Executive Orders 12866 This rule has been reviewed under to qualify for insurance until a plan can and 13563 for the analysis of costs and Executive Order 12988, ‘‘Civil Justice be updated by a certifying agent. benefits apply to rules that are Reform.’’ This rule will not preempt The organic industry presented determined to be significant. State or local laws, regulations, or concerns to FCIC, Farm Service Agency, The Office of Management and Budget policies unless they represent an and Agricultural Marketing Service (OMB) designated this rule as not irreconcilable conflict with this rule. regarding producers’ inability to have significant under Executive Order Before any judicial actions may be organic plans and certificates ‘‘in effect’’ 12866, ‘‘Regulatory Planning and brought regarding the provisions of this by their crop insurance policy ARD due Review,’’ and therefore, OMB has not rule, the administrative appeal to COVID restrictions limiting travel and reviewed this rule and analysis of the provisions of 7 CFR part 11 are to be face to face interaction. To mitigate costs and benefits is not required under exhausted. these concerns and provide flexibility, either Executive Order 12866 or 13563. Executive Order 13175 FCIC provided relief through Manager’s Bulletins: MGR–20–0013 and MGR–20– Clarity of the Regulation This rule has been reviewed in 0026 and is incorporating the Manager’s Executive Order 12866, as accordance with the requirements of Bulletins in this rule. With this change, supplemented by Executive Order Executive Order 13175, ‘‘Consultation FCIC recognizes the on-going challenges 13563, requires each agency to write all and Coordination with Indian Tribal that the organic producers face and rules in plain language. In addition to Governments.’’ Executive Order 13175 provides flexibility, while also ensuring your substantive comments on this rule, requires Federal agencies to consult and the Federal crop insurance program we invite your comments on how to coordinate with Tribes on a continues to serve as a vital risk make the rule easier to understand. For government-to-government basis on management tool and organic example: policies that have Tribal implications, regulations remain in effect. • Are the requirements in the rule including regulations, legislative comments or proposed legislation, and Effective Date and Notice and Comment clearly stated? Are the scope and intent of the rule clear? other policy statements or actions that The Administrative Procedure Act • Does the rule contain technical have substantial direct effects on one or (APA, 5 U.S.C. 553) provides that the language or jargon that is not clear? more Indian Tribes, on the relationship notice and comment and 30-day delay • Is the material logically organized? between the Federal Government and in the effective date provisions do not • Would changing the grouping or Indian Tribes or on the distribution of apply when the rule involves specified order of sections or adding headings power and responsibilities between the actions, including matters relating to make the rule easier to understand? Federal Government and Indian Tribes. contracts. This rule governs contracts • Could we improve clarity by adding RMA has assessed the impact of this for crop insurance policies and therefore tables, lists, or diagrams? rule on Indian Tribes and determined falls within that exemption. • Would more, but shorter, sections that this rule does not, to our This rule is exempt from the be better? Are there specific sections knowledge, have Tribal implications regulatory analysis requirements of the that are too long or confusing? that require Tribal consultation under Regulatory Flexibility Act (5 U.S.C. • What else could we do to make the E.O. 13175. The regulation changes do 601–612), as amended by the Small rule easier to understand? not have Tribal implications that Business Regulatory Enforcement preempt Tribal law and are not expected Fairness Act of 1996. Environmental Review have a substantial direct effect on one or For major rules, the Congressional In general, the environmental impacts more Indian Tribes. If a Tribe requests Review Act requires a delay to the of rules are to be considered in a consultation, RMA will work with the effective date of 60 days after manner consistent with the provisions USDA Office of Tribal Relations to

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ensure meaningful consultation is program information (for example, ■ i. Remove paragraph (e); provided where changes, additions and braille, large print, audiotape, American ■ ii. Redesignate paragraphs (f) and (g) modifications identified in this rule are Sign Language, etc.) should contact the as paragraphs (e) and (f); and not expressly mandated by Congress. responsible Agency or USDA TARGET ■ iii. Revise redesignated paragraph (f). Center at (202) 720–2600 or 844–433– The revisions read as follows: The Unfunded Mandates Reform Act of 2774 (toll-free nationwide). 1995 § 407.9 Area risk protection insurance Additionally, program information may policy. Title II of the Unfunded Mandates be made available in languages other Reform Act of 1995 (UMRA, Pub. L. than English. * * * * * 104–4) requires Federal agencies to To file a program discrimination 1. Definitions assess the effects of their regulatory complaint, complete the USDA Program actions of State, local, and Tribal Discrimination Complaint Form, AD– * * * * * governments or the private sector. 3027, found online at https:// Acreage reporting date. The date Agencies generally must prepare a www.usda.gov/oascr/how-to-file-a- contained in the Special Provisions by written statement, including cost program-discrimination-complaint and which you are required to submit your benefits analysis, for proposed and final at any USDA office or write a letter acreage report. rules with Federal mandates that may addressed to USDA and provide in the * * * * * result in expenditures of $100 million or letter all the information requested in Veteran farmer or rancher. more in any 1 year for State, local or the form. To request a copy of the (1) An individual who has served Tribal governments, in the aggregate, or complaint form, call (866) 632–9992. active duty in the United States Army, to the private sector. UMRA generally Submit your completed form or letter to Navy, Marine Corps, Air Force, or Coast requires agencies to consider USDA by mail to: U.S. Department of Guard, including the reserve alternatives and adopt the more cost Agriculture, Office of the Assistant components; was discharged or released effective or least burdensome alternative Secretary for Civil Rights, 1400 under conditions other than that achieves the objectives of the rule. Independence Avenue SW, Washington, dishonorable; and: This rule contains no Federal mandates, DC 20250–9410 or email: OAC@ (i) Has not operated a farm or ranch; as defined in Title II of UMRA, for State, usda.gov. (ii) Has operated a farm or ranch for local, and Tribal governments or the USDA is an equal opportunity not more than 5 years; or private sector. Therefore, this rule is not provider, employer, and lender. (iii) First obtained status as a veteran subject to the requirements of sections during the most recent 5-year period. 202 and 205 of UMRA. List of Subjects (2) A person, other than an 7 CFR Part 407 individual, may be eligible for veteran Federal Assistance Program farmer or rancher benefits if all The title and number of the Federal Acreage allotments, Administrative substantial beneficial interest holders Domestic Assistance Program listed in practice and procedure, Barley, Corn, qualify individually as a veteran farmer the Catalog of Federal Domestic Cotton, Crop insurance, Peanuts, or rancher in accordance with paragraph Assistance to which this rule applies is Reporting and recordkeeping (1) of this definition; except in cases in No. 10.450—Crop Insurance. requirements, Sorghum, Soybeans, which there is only a married couple, Wheat. then a veteran and non-veteran spouse Paperwork Reduction Act of 1995 7 CFR Part 457 are considered a veteran farmer or In accordance with the provisions of rancher. Acreage allotments, Crop insurance, the Paperwork Reduction Act of 1995 * * * * * (44 U.S.C. chapter 35, subchapter I), the Reporting and recordkeeping rule does not change the information requirements. 15. Yields collection approved by OMB under Final Rule * * * * * control numbers 0563–0053. For the reasons discussed above, FCIC (f) Yields used under this insurance USDA Non-Discrimination Policy amends 7 CFR parts 407 and 457, program for a crop may be based on crop insurance data, other USDA data, In accordance with Federal civil effective for the 2022 and succeeding or other data sources, if elected by FCIC. rights law and USDA civil rights crop years for crops with a contract regulations and policies, USDA, its change date on or after June 30, 2021, * * * * * Agencies, offices, and employees, and and for the 2023 and succeeding crop years for all other crops, as follows: PART 457—COMMON CROP institutions participating in or INSURANCE REGULATIONS administering USDA programs are PART 407—AREA RISK PROTECTION prohibited from discriminating based on INSURANCE REGULATIONS ■ 3. The authority citation for part 457 race, color, national origin, religion, sex, continues to read as follows: gender identity (including gender ■ 1. The authority citation for 7 CFR Authority: 7 U.S.C. 1506(l) and 1506(o). expression), sexual orientation, part 407 continues to read as follows: disability, age, marital status, family or ■ 4. Amend § 457.8 as follows: parental status, income derived from a Authority: 7 U.S.C. 1506(l) and 1506(o). ■ a. In section 1 of the ‘‘Common Crop public assistance program, political ■ 2. Amend § 407.9 by: Insurance Policy,’’ revise the definition beliefs, or reprisal or retaliation for prior ■ a. In section 1: of ‘‘veteran farmer or rancher’’; civil rights activity, in any program or ■ i. Revise the definition of ‘‘acreage ■ b. In section 14 of the ‘‘Common Crop activity conducted or funded by USDA reporting date’’; Insurance Policy,’’ add paragraph (b)(6); (not all bases apply to all programs). ■ ii. Remove the definition of ‘‘NASS’’; ■ c. In section 15 of the ‘‘Common Crop Remedies and complaint filing and Insurance Policy,’’ in paragraph (i)(3), deadlines vary by program or incident. ■ iii. Revise the definition of ‘‘veteran add the phrase ‘‘the introductory Persons with disabilities who require farmer or rancher;’’ paragraph of section’’ after the phrase alternative means of communication for ■ b. In section 15: ‘‘than determined in’’;

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■ d. In section 17 of the ‘‘Common Crop or available to apply, or that acreage was remainder of the crop year, that acreage Insurance Policy,’’ revise paragraph part of a crop rotation). will remain insured under the reported (f)(1)(iv); * * * * * practice for which it qualified at the ■ e. In section 34 of the ‘‘Common Crop time the acreage was reported. Any loss Insurance Policy,’’ add paragraph 34. Units due to failure to comply with organic (a)(4)(ix); and (a) * * * standards will be considered an ■ f. In section 37 of the ‘‘Common Crop (4) * * * uninsured cause of loss. Insurance Policy,’’ revise paragraphs (c) (ix) You may elect enterprise units as * * * * * and (e). allowed by the Crop Provisions if The additions and revisions read as provided in the actuarial documents. Richard H. Flournoy, follows: * * * * * Acting Manager, Federal Crop Insurance Corporation. § 457.8 The application and policy. 37. Organic Farming Practices [FR Doc. 2021–13939 Filed 6–29–21; 8:45 am] * * * * * * * * * * BILLING CODE 3410–08–P Common Crop Insurance Policy (c) You must provide the following * * * * * organic records, as applicable: (1) By the acreage reporting date, NATIONAL CREDIT UNION 1. Definitions except as allowed by section 37(c)(2), ADMINISTRATION you must have: * * * * * 12 CFR Part 741 Veteran farmer or rancher. (1) An (i) For certified organic acreage, a individual who has served active duty written certification in effect from a [NCUA 2020–0114] in the United States Army, Navy, certifying agent indicating the name of RIN 3133–AF30 Marine Corps, Air Force, or Coast the entity certified, effective date of certification, certificate number, types of Guard, including the reserve Capitalization of Interest in Connection commodities certified, and name and components; was discharged or released With Loan Workouts and Modifications under conditions other than address of the certifying agent (A dishonorable; and: certificate issued to a tenant may be AGENCY: National Credit Union (i) Has not operated a farm or ranch; used to qualify a landlord or other Administration (NCUA). (ii) Has operated a farm or ranch for similar arrangement). ACTION: Final rule. not more than 5 years; or (ii) For transitional acreage, a (iii) First obtained status as a veteran certificate as described in section SUMMARY: The NCUA Board (Board) is during the most recent 5-year period. 37(c)(1)(i), or written documentation amending its regulations to remove the (2) A person, other than an from a certifying agent indicating an prohibition on the capitalization of individual, may be eligible for veteran organic plan is in effect for the acreage. interest in connection with loan farmer or rancher benefits if all (iii) For certified organic and workouts and modifications. The final substantial beneficial interest holders transitional acreage, records from the rule also establishes documentation qualify individually as a veteran farmer certifying agent showing the specific requirements to help ensure that the or rancher in accordance with paragraph location of each field of certified addition of unpaid interest to the (1) of this definition; except in cases in organic, transitional, buffer zone, and principal balance of a mortgage loan which there is only a married couple, acreage not maintained under organic does not hinder the borrower’s ability to then a veteran and non-veteran spouse management. become current on the loan. The Board are considered a veteran farmer or (2) If you do not meet the has also taken the opportunity afforded rancher. requirements in section 37(c)(1)(i) or by the rulemaking to make several * * * * * (ii), you must provide documentation technical changes to the regulations to that you have requested, in writing, improve their clarity and update certain 14. Duties in the Event of Damage, Loss, your written certification or organic references. The final rule follows Abandonment, Destruction, or plan by the acreage reporting date. publication of the December 4, 2020, Alternative Use of Crop or Acreage (i) Your certificate or plan must be in proposed rule and takes into * * * * * effect prior to the earlier of the end of consideration the public comments on (b) * * * the insurance period or when coverage the proposed rule. After careful (6) You must give us notice in ends as provided in section 11(b). consideration, the Board has decided to accordance with section 36(a)(3) to (ii) Your acreage will remain insured adopt the proposed rule without change. replace post-quality actual yields for under the practice you reported on the DATES: Effective July 30, 2021. acreage reporting date unless you have previous crop years. FOR FURTHER INFORMATION CONTACT: * * * * * a loss. If you have a loss and do not have a certificate or plan in place at the Policy: Alison L. Clark, Chief 17. Prevented Planting time the claim is finalized in accordance Accountant, and Timothy C. Segerson, with the applicable policy provisions, Deputy Director, Office of Examinations * * * * * and Insurance, at (703) 518–6360; Legal: (f) * * * then your acreage will be insured under the practice for which it qualifies. Ariel Pereira and Gira Bose, Senior Staff (1) * * * Attorneys, Office of General Counsel, at (iv) The acreage that was prevented * * * * * (703) 518–6540. from being planted constitutes at least (e) If any acreage qualifies as certified 20 acres or 20 percent of the total organic or transitional acreage on the SUPPLEMENTARY INFORMATION: I. Background: The Board’s December 4, insurable acreage in the field and you date you report such acreage, and such 2020, Proposed Rule provide proof that you intended to plant certification is subsequently revoked or II. Legal Authority another crop, crop type, or follow both suspended by the certifying agent, or the III. Discussion of Public Comments Received practices on the acreage (including, but certifying agent does not consider the on the December 4, 2020, Proposed Rule not limited to inputs purchased, applied acreage as transitional acreage for the IV. This Final Rule

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V. Regulatory Procedures capitalization by banks, also factored in role as share insurer for all FICUs.6 I. Background: The Board’s December the Board’s determination. Banks are Accordingly, the FCU Act grants the 4, 2020, Proposed Rule not subject to the same prohibition on Board broad rulemaking authority to capitalizing interest (the banking ensure that the credit union industry At its November 19, 2020, meeting, agencies have not adopted an absolute and the National Credit Union Share the Board proposed amending the standard equivalent to the rule that the Insurance Fund remain safe and sound. NCUA’s regulations to remove the Board codified in 2012). The banking III. Discussion of Public Comments prohibition on the capitalization of agencies have addressed capitalization Received on the December 4, 2020, interest in connection with loan of interest through guidance, letters, and Proposed Rule workouts and modifications. The Call Report instructions, none of which proposed rule was subsequently strictly prohibit the capitalization of A. The Comments, Generally published in the Federal Register on interest when modifying loans. Further, December 4, 2020.1 The prohibition is The proposed rule provided for a 60- the government-sponsored enterprises day public comment period, which codified in Appendix B to Part 741 (GSEs)—Fannie Mae and Freddie Mac— (hereinafter referred to as ‘‘Appendix closed on February 2, 2021. The NCUA have had a long-standing policy received 26 comments in response to B’’) of the NCUA’s regulations. supporting the ability of servicers to As explained in the preamble to the the proposed rule. These came from capitalize interest and fees as part of a December 4, 2020, proposed rule, the FICUs, individuals, and credit union prudent modification program. NCUA established the prohibition on leagues and trade associations. In authorizing additional advances to Accordingly, the Board issued the general, the commenters expressed finance unpaid interest in a May 3, December 4, 2020, proposed rule to support for lifting the prohibition on 2012, final rule.2 The May 2012 final make capitalization of interest a interest capitalization as a helpful tool rule established loan workout and permissible option indefinitely. The to assist financially distressed monitoring requirements applicable to proposed rule applies to workouts of all borrowers. The main reasons given by all federally insured credit unions types of member loans, including commenters for supporting the (FICUs). Among other amendments, the commercial and business loans. In proposed rule were parity with banks, final rule required that FICUs have proposing the change, the Board which are not prohibited from written policies addressing loan underscored that Appendix B currently capitalizing interest; parity for FICU workouts and nonaccrual practices. requires several safety and soundness members whose loans are held in Under that final rule, such policies were and consumer protection-oriented portfolio by the originating FICU and required to prohibit a FICU from measures that would also apply to who, unlike members whose loans are authorizing additional advances to a capitalizing interest. The Board also sold on the secondary market, cannot borrower to finance unpaid interest proposed to add several consumer currently take advantage of interest (capitalization of interest) and credit protection and safety and soundness capitalization; and flexibility for union fees and commissions. However, requirements to Appendix B for FICUs distressed borrowers for whom interest the final rule permitted FICUs to make when they modify loans with an interest capitalization may be the only realistic such advances to cover third-party fees, capitalization component. solution for avoiding foreclosure. such as force-placed insurance and The proposed rule also makes several While noting the Board’s interest in property taxes. technical changes to Appendix B to receiving public comment on all aspects The Board was prompted to improve its clarity and update certain of the interest capitalization issue, the reconsider these prohibitions because of references. Interested readers should preamble to the proposed rule also the challenges and economic disruption refer to the preamble of the December 4, provided six questions requesting input caused by the COVID–19 pandemic. For 2020, proposed rule for additional on specific issues related to the borrowers experiencing financial background and information on the proposed rule. This section of the hardship, a prudently underwritten and proposed regulatory changes. preamble summarizes the issues raised appropriately managed loan II. Legal Authority by the public commenters and provides modification, consistent with safe and the Board’s responses to these issues. sound lending practices, is generally in The Board issues this final rule This comment summary is organized in the long-term best interest of both the pursuant to its authority under the two sections. The first addresses the borrower and the FICU. Such Federal Credit Union (FCU) Act.3 Under comments received in response to the modifications may allow a borrower to the FCU Act, the NCUA is the chartering questions posed in the preamble. The remain in their home or a commercial and supervisory authority for federal second section summarizes the other borrower to maintain operations and credit unions (FCUs) and the Federal issues raised by the commenters. As can help FICUs minimize the costs of supervisory authority for FICUs.4 The previously noted, and discussed more default and foreclosures. Thus, the FCU Act grants the NCUA a broad fully in the responses below, after prohibition in the May 2012 final rule mandate to issue regulations that govern careful review of the comments, the on the capitalization of interest might be both FCUs and FICUs. Section 120 of Board has elected to adopt the proposed overly burdensome and, in some cases, the FCU Act is a general grant of regulatory amendments without change. possibly hamper a FICU’s good-faith regulatory authority and authorizes the However, the Board is clarifying below efforts to engage in loan workouts with Board to prescribe rules and regulations its supervisory position with regard to borrowers facing financial difficulty. for the administration of the FCU Act.5 FICUs that may already have begun Other considerations, such as parity Section 209 of the FCU Act is a plenary offering interest capitalization prior to with the treatment of interest grant of regulatory authority to the the finalization of this rule. NCUA to issue rules and regulations 1 85 FR 78269 (Dec. 4, 2020) (https:// necessary or appropriate to carry out its B. Comments on Specific Provisions www.govinfo.gov/content/pkg/FR-2020-12-04/pdf/ 2020-25988.pdf). Responses to NCUA Questions 1 to 4. 2 77 FR 31993 (May 31, 2012) (https:// 3 12 U.S.C. 1751 et al. The NCUA asked FICUs to lay out their www.govinfo.gov/content/pkg/FR-2012-05-31/pdf/ 4 12 U.S.C. 1752–1775. 2012-13214.pdf). 5 12 U.S.C. 1766(a). 6 12 U.S.C. 1789(a)(11).

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experience or level of use with interest expected to occur so infrequently that it loan types, including business and capitalization before the agency would be of no concern. commercial, or just consumer loans. prohibited the practice in 2012. Of those NCUA Response. The NCUA Another commented that NCUA should that answered the question, one FICU appreciates the thoughtful comments strive for balance so that administrative stated that it did not allow the use of submitted in response to the first four burdens do not outweigh member this mortgage modification tool. Others questions posed in the preamble to the benefits and noted that temporary stated that it was beneficial, including December 4, 2020, proposed rule. The income impairment may prevent a one who said it was frequently used, comments indicate that interest member from providing the particularly during the last financial capitalization was used prior to the documentary proof that examiners crisis. One FICU stated that its program 2012 change in policy, and that it will traditionally expect. Finally, one of enjoyed an 85 percent success rate from likely again be used following the these commenters added that NCUA 2010 to 2012 and included issuance of this final rule. Accordingly, examiners should refrain from adding approximately 170 workouts the Board continues to believe that the documentation requirements beyond representing about $22 million in capitalization of interest, when used those in the proposed rule and, absent mortgage loans that were saved from prudently, can be a helpful loan a safety and soundness issue, should foreclosure. modification tool in the best interests of also defer to the judgment of the FICU The NCUA also asked how likely members and FICUs. In response to the and its understanding of a borrower’s FICUs would be to use interest commenters concerned the change may ability to repay the loan. capitalization if the prohibition is lifted. raise risks for consumers, the Board Four commenters stated that existing All FICUs that answered the question reiterates that the consumer protection consumer protection measures are stated that they would use the tool to measures that currently apply to FICU sufficient to protect and inform varying degrees largely dependent on its loan workout policies also apply to loan members, including two whose specific suitability for individual borrowers. workouts involving the capitalization of comments are set forth below. One The NCUA asked what risks might interest. In addition, as provided in the commenter stated that the requirement proposed rule, the Board is adding to document a borrower’s ability to arise either to the FICU or the borrower several consumer protection repay would be problematic with in a mortgage modification that includes requirements that will apply to loan COVID-related loans due to the capitalization of interest. Of those that workouts involving the capitalization of enormous volume of members answered the question, one commenter interest. requesting COVID-related assistance. stated that the risks would include a Comment: Consumer Protection For example, if the FICU is capitalizing lack of understanding on the member’s Guardrails. NCUA question 5 asked interest it would be increasing the part of what interest capitalization commenters to provide their feedback current loan amount to avoid delays and means for their loan and there could be on the consumer protection guardrails unnecessary paperwork. Furthermore, if risk to the FICU if interest is capitalized and documentation requirements in the the new loan amount does not exceed on loans that already have high loan-to- proposed rule. The proposed rule states 110 percent of the original loan amount value ratios. This commenter noted, that capitalization of interest is not an then the FICU does not need to verify however, that such risks could be appropriate solution in all cases and, as income or request a new appraisal. In effectively mitigated by the FICU Appendix B currently provides, a FICU these situations, a certification from the providing clear communication to its should consider and balance the best borrower that his/her income has not members and reviewing its member’s interests of the FICU and the borrower. decreased from the time the loan was ability to repay the modified loan. Some The Board proposed adding several originally approved should suffice. stated that the consumer protection consumer protection and safety and Therefore, the NCUA should waive the guardrails in the proposed rule would soundness requirements to the ‘‘ability-to-repay’’ documentation help mitigate any consumer protection Appendix for FICUs that capitalize requirements in these instances. risks. Others noted that the risk of not interest in connection with loan The second commenter stated that the permitting interest capitalization workouts. At a minimum, if a FICU’s revisions required of a FICU’s needed to be weighed against any loan modification policy permits modification policy are so burdensome potential risk in permitting the practice. capitalization of unpaid interest, under that they will deter many FICUs from Some commenters noted that they the proposed rule, the policy would offering interest capitalization because evaluate each member’s situation have to require documentation that the requirements effectively require individually and did not anticipate any reflects a borrower’s ability to repay, a FICUs to complete a full underwriting of risks to the FICU or the member. borrower’s source(s) of repayment, and a modified loan multiple times. The The NCUA asked how the limitations when appropriate, compliance with the commenter stated that the NCUA’s imposed by the GSEs on the use of FICU’s valuation policies at the time the existing rule already requires credit interest capitalization would impact a modification is approved. unions to make loan workout decisions credit union’s use of this mortgage Of the commenters that referenced the based on a borrower’s renewed modification tool. Those that answered documentation requirements, 17 stated willingness and ability to repay the loan this question stated that the impact that they support them. Some of these and if a loan workout is granted then the would be minimal. One FICU stated that commenters, however, asked for credit union must document the they already underwrite to Fannie Mae clarification or suggested changes to determination that the borrower is guidelines and are aware of the certain aspects of the requirements. For willing and able to repay the loan. This limitations. One commenter stated that example, one of the commenters existing requirement thus fulfils the loans that feature interest capitalization suggested additional consumer ability to repay and documentation would not be loans that it would sell on guardrails to prohibit changes in loan requirements while recognizing the the secondary market. Another stated terms such as interest rates or punitive need for flexibility. that its recent sales to the GSEs were all fees established in the existing loan The commenter stated that the newly originated and that a loan contract. Another commenter asked for existing rule also enables FICUs to requesting forbearance between clarification as to whether the proposed respond to large-scale, short-term origination date and sale date is consumer protections would apply to all financial challenges arising, for

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example, from natural disasters such as the additional documentation should consider allowing the hurricanes, temporary gaps in requirements for other types of loan capitalization of fees up to a certain employment, or the current pandemic modifications. In addition, several of the level. Another stated that for consumer which may make it difficult to access guardrails reflect current best practices protection purposes any fees charged for documentation, even though the FICU and requirements that should not a modification involving interest reasonably determines that the impose any additional significant capitalization should not be borrower’s mid- to long-term income burden on credit unions. For example, commissionable and that fees should be prospects remain intact. credit unions are already required to limited to actual costs incurred. Finally, the commenter stated that the comply with all applicable consumer One FCU commenter stated that its way the proposed rule is drafted implies protections laws and regulations. The mortgage modifications are handled by that these additional documentation guardrails reiterate the need for a third-party service provider which requirements would apply to all compliance to emphasize the charges a fee for each modification. If modification types if the credit union importance of these legal consumer the fee cannot be capitalized and the merely permits interest capitalization.7 protections. Likewise, FICUs are already borrower cannot afford to pay it as a NCUA Response. The Board assumed to undertake the necessary due direct charge, the FCU’s only appreciates the support expressed by diligence to ensure a borrower’s ability alternatives are to deny the modification the large majority of commenters for the to repay. For example, Appendix B or absorb the cost. This commenter was proposed consumer protection currently requires that a FICU’s loan the only one to provide some data guardrails. The final rule adopts these modification policy ‘‘must also ensure regarding the actual cost of modification consumer protection measures without credit unions make loan workout fees. Prior to 2012, when interest change. decisions based on the borrower’s capitalization was permitted, the cost to Appendix B applies to consumer and renewed willingness and ability to this FCU for the modification of 170 commercial loans. The rule requires that repay the loan.’’ 8 The Board also notes mortgage loans would have been loan modification policies must provide that the rule does not prescribe a approximately $42,500. If the cost to the for ‘‘[c]ompliance with all applicable specific method for making this FCU of managing the program and consumer protection laws and determination, thereby providing credit operating its loan system were included, regulations.’’ The term ‘‘applicable’’ unions with a large degree of flexibility the cost more than doubled. The FCU indicates that FICUs must comply with in meeting the requirement. The rule further noted that the fees are the the laws and regulations that apply to a requires only that FICUs maintain reimbursement of costs and not a particular transaction. While some of documentation reflecting how the revenue generation opportunity. those, such as the Equal Credit determination was made. NCUA Response. Having reviewed the Opportunity Act, might apply to a Comment: Prohibition on Advancing comments, the Board is not persuaded commercial loan, most will not. Credit Union Fees and Commissions. that FICUs should be permitted to As noted, one of the comments Seventeen commenters responded to capitalize credit union fees and suggested additional consumer question 6 regarding whether NCUA commissions at this time. Most guardrails to prohibit changes to interest should lift the current prohibition on commenters advocating for the change rates or fees. The Board designed the the capitalization of credit union fees did not include any discussion of how proposed rule to provide FICUs greater and commissions. borrowers would be protected from flexibility when restructuring an The commenters in support of excessive fees or supply any data on the existing loan. However, the proposed maintaining the prohibition stated that actual cost to FICUs of providing loan rule requires that, when doing so, a they did not deem it necessary to charge workouts with interest capitalization. FICU must consider whether the loan such fees or feel that it was appropriate The final rule continues to permit FICUs modification is well-designed and to charge internal fees to members who to make advances covering third-party fees, such as force-placed insurance or provides a favorable outcome for are struggling. They noted that property taxes. The Board, however, borrowers. While a fair consideration of continuing to prohibit the practice is an continues to believe that the current a borrower’s circumstances would important consumer protection. One of restrictions on fee reimbursement have generally not support an increase to the commenters stated that in the event provided a level of protection for interest rates or fees, the Board believes the NCUA did decide to authorize the borrowers in distress. The Board agrees the language of the proposed rule capitalization of credit union fees and with the comment that it would be provides the desired protections and commissions, appropriate limitations contrary to the purposes of the credit declines to change it at this time. should be put in place, without which union system to capitalize internally In response to the commenters who the potential for predatory behavior and generated fees and commissions in a raised concerns that compliance with risk to the member-borrower may be time of economic stress. Accordingly, the new requirements might be heightened. credit union fees and commissions must burdensome, the Board notes that the Two commenters in support of be paid directly by the borrower at the consumer protection guardrails added removing the prohibition stated that time of the modification and not added by this rule apply solely to loan FICUs should have the ability to charge to the loan balance. modifications that involve the reasonable modification fees so long as capitalization of interest. FICUs will those fees are disclosed. One stated that C. Other Issues Raised by Commenters FICUs have an incentive to not therefore not be required to comply with Comment: Federal Preemption of overburden the member with excessive State Consumer Protection Laws. Two 7 workout-related fees to help the member The proposed rule states in the regulatory text: commenters raised state preemption ‘‘Modifications of loans that result in capitalization repay the loan. Another commenter issues. Both commenters asked the of unpaid interest are appropriate only when the stated that if the NCUA chose not to borrower has the ability to repay the debt in NCUA to clarify that the proposed rule’s allow all FICU fees to be capitalized, it accordance with the modification. At a minimum, requirement that all FICUs follow if a FICU’s loan modification policy permits capitalization of unpaid interest, the policy must 8 See 12 CFR part 741, Appendix B, section applicable state consumer protection require each of the following . . .’’ (Supra note 1, captioned ‘‘Written Loan Workout Policy and laws does not override its regulation at 78272). Monitoring Requirements.’’ preempting state law on issues

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pertaining to ‘‘terms of repayment’’ (12 their members. In their June 2020 any TDR requirements through this CFR 701.21(b)(1)(ii)(B)). Both interagency examiner guidance, the rulemaking. commenters noted that some states NCUA and the other banking agencies IV. This Final Rule prohibit the charging of interest on noted that loan modifications are interest which if not preempted will ‘‘positive actions that can mitigate A. Capitalization of Interest dampen the effectiveness of NCUA’s adverse effects on borrowers due to the The Board is amending Appendix B to proposed rule. pandemic.’’ 12 The interagency guidance remove the prohibition on the NCUA Response: As an initial matter, specifies that ‘‘[e]xaminers will not capitalization of interest in connection the NCUA notes that the part 701 criticize institutions for working with with loan workouts and modifications. regulations, including § 701.21, borrowers as part of a risk mitigation As noted, the change applies to generally apply solely to FCUs. strategy intended to improve existing workouts of all types of member loans, Federally insured, state-chartered credit loans, even if the restructured loans including commercial and business unions (FISCUs) must follow any have or develop weaknesses that loans. The NCUA also notes that— requirements established by their State ultimately result in adverse credit regarding the terms of repayment.9 With consistent with the scope of Appendix classification.’’ 13 The NCUA will take respect to FCUs, this final rule does not B—the regulatory amendments made by into account the interagency examiner in any way amend the regulation this final rule apply only to loan regarding the relationship between State guidance in assessing any loan modifications involving the law and the NCUA’s regulations on modification actions taken by credit capitalization of interest. The final rule loans made to members and lines of unions, including interest does not address the capitalization of credit (12 CFR 701.21). The Board is not capitalization, prior to the effective date interest that may occur in other inclined to provide a blanket of this final rule. contexts. The Board notes that banks preemption of any or all State laws that Comment: Troubled Debt frequently include interest may relate to capitalization of interest. Restructuring. One commenter stated capitalization as one of several FCUs may need to evaluate the that the NCUA should emphasize, either components in a loan restructuring to application of relevant state laws on a in the regulation or in supervisory mutually benefit the lender and the case-by-case basis and may contact the guidance, the importance of a FICU borrower. The Board expects that FICUs will follow suit, and provide borrowers NCUA for its opinion in the event a update to its troubled debt restructuring with the option to capitalize interest particular State law raises a preemption (TDR) policy because a TDR policy that along with other loan modification issue. harmonizes interest capitalization and options, such as the lowering of loan Comment: Retroactive Applicability. other accounting tools is essential if payments or the interest rate, extending Two commenters asked that the NCUA NCUA’s proposed rule is to achieve its the maturity date, partial principal or apply the rule retroactively. One stated full, intended effect. that NCUA should make January 1, interest forgiveness and other 2020, the effective date to fully capture NCUA Response. The Board modifications. the economic disruption caused by the appreciates this comment and agrees The final rule adds a definition of pandemic. The other commenter stated that FICUs should update their TDR capitalized interest to the Glossary of that in the interests of fairness if a credit policies as necessary to maintain Appendix B. For the purposes of this union has already been capitalizing consistency with applicable rulemaking, capitalization of interest interest on loans without receiving an requirements. TDRs are a concept found constitutes the addition of accrued but examination finding or Document of in generally accepted accounting unpaid interest to the principal balance Resolution (DOR),10 then examiners principles (GAAP),14 which FICUs are of a loan. should not take corrective action for generally required to follow pursuant to The final rule continues to provide these practices once the rule is section 202 of the FCU Act.15 The that a FICU may not, under any event, finalized. NCUA and the other banking agencies authorize additional advances to finance NCUA Response. The Board has not most recently issued guidance regarding credit union fees and commissions. revised the rule in response to these TDRs on April 7, 2020. The April 7, FICUs will be permitted to continue to comments. The Board notes that, as a 2020, interagency statement is designed make advances to cover third party fees legal matter, agencies may not generally to assist financial institutions that are to protect loan collateral, such as force- adopt retroactive rules without explicit working with borrowers affected by placed insurance or property taxes. The congressional authorization.11 COVID–19.16 The NCUA is not revising Board believes that maintaining the Accordingly, this final rule will apply prohibition on the capitalization of prospectively upon issuance. The 12 Interagency Examiner Guidance for Assessing credit union fees is an important Board, however, is cognizant of the Safety and Soundness Considering the Effect of the consumer protection feature of the rule extraordinary nature of the COVID–19 COVID–19 Pandemic on Institutions (June 2020), for member borrowers. page 6, available at https://www.ncua.gov/files/ The Board underscores that it is pandemic, and the resulting stresses press-releases-news/examiner-guidance-covid19- that have been placed on FICUs and effect.pdf. maintaining several requirements that 13 Id. apply to all loan workout policies in 9 As provided in § 701.21(a), certain provisions of 14 See Federal Accounting Standards Board Appendix B. For example, the § 701.21 apply to FISCUs as specified in § 741.23; (FASB) Accounting Standards Codification (ASC) Appendix establishes the expectation however, the part 741 provision does not make 310–40, Receivables—Troubled Debt Restructurings that loan workouts will consider and § 701.21(b)(1)(ii)(B) applicable to FISCUs. by Creditors, available at https://asc.fasb.org/ balance the best interests of the FICU 10 See generally the NCUA Examiner’s Guide, for subtopic&trid=2196892. more information regarding the agency’s 15 See section 202(b)(6)(C)(i) of the Federal Credit and the borrower, including consumer examination process, including examination Union Act (12 U.S.C. 1782(b)(6)(C)(i)). financial protection measures. Ensuring findings and DORs. The Guide is available at: 16 Interagency Statement on Loan Modifications the best interest of the borrower https://publishedguides.ncua.gov/examiner/Pages/ and Reporting for Financial Institutions Working prohibits predatory lending practices default.htm#ExaminersGuide/ with Customers Affected by the Coronavirus Home.htm%3FTocPath%3D_1. (Revised) (April 7, 2020), available at: https:// such as including loan terms that result 11 Bowen v. Georgetown Univ. Hosp., 488 U.S. 204 www.ncua.gov/files/press-releases-news/ in negative amortization. In addition, a (1988). interagency-statement-tdr-policy-revised.pdf. FICU’s policy must establish limits on

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the number of modifications allowed for Federal preemption determinations that replaced the cost recovery method of an individual loan. Further, the policy may be appropriate.) income recognition in ASC 605–10–25– must ensure that a FICU make loan 2. Documentation that reflects a 4 with transition guidance found in ASC workout decisions based on a borrower’s ability to repay, a borrower’s 606—Revenue from Contracts with borrower’s renewed willingness and source(s) of repayment, and when Customers. The (2012) Appendix made ability to repay the loan. appropriate, compliance with the reference to the cost recovery method of If a FICU restructures a loan more FICU’s valuation policies at the time the income recognition with citation in the frequently than once a year or twice in modification is approved. Glossary. As this has been superseded five years, examiners will have higher 3. Providing borrowers with by ASC 606, the Board has eliminated expectations for the documentation of documentation that is accurate, clear, this reference in the Appendix and the borrower’s renewed willingness and and conspicuous and consistent with emphasizes that accrual of interest ability to repay the loan. The current Federal and state consumer protection income ceases on a financial asset when Appendix also sets forth several laws. full payment of principal and interest in supervisory expectations relating to 4. Appropriate reporting of loan status cash is not expected. multiple restructurings, stating that for modified loans in accordance with In addition, to conform to the examiners will request validation applicable law and accounting terminology that the Board adopted in documentation regarding collectability practices. The FICU shall not report a 2016 in amending part 723,17 the final if a FICU engages in multiple modified loan as past due if the loan rule updates references to member restructurings of a loan. The current was current prior to modification and business loans to also refer to Appendix also requires that a FICU the borrower is complying with the commercial loans. These changes are maintain sufficient documentation to terms of the modification. not intended to create new requirements demonstrate that the FICU’s personnel 5. Prudent policies and procedures to or standards. communicated the new terms with the help borrowers resume affordable and The final rule also makes terminology borrower, that the borrower agreed to sustainable repayments that are in the Appendix consistent with its pay the loan in full under the new terms appropriately structured, while at the purpose. The Appendix sets forth and, most importantly, the borrower has same time minimizing losses to the requirements for FICU policies relating the ability to repay the loan under the credit union. The prudent policies and to loan workouts, TDRs, and nonaccrual new terms. procedures must consider: status. In several instances, the current These requirements and expectations, i. Whether the loan modifications are Appendix uses the word ‘‘should’’ when which currently apply to FICUs’ loan well-designed, consistently applied, and referring to necessary elements of a workout policies, will apply equally if provide a favorable outcome for FICU’s policies or refers to the a FICU adopts a practice of capitalizing borrowers. Appendix as ‘‘guidance’’ or an interest in connection with loan ii. The available options for borrowers interpretive ruling and policy statement. workouts. In addition, in light of the to repay any missed payments at the To make the purpose and effect of the potential for interest capitalization to end of their modifications to avoid Appendix clearer, the final rule uses have a detrimental effect on borrowers delinquencies or other adverse mandatory language where appropriate if executed inappropriately, and to mask consequences. and eliminates references to the the true financial status of a loan and a 6. Appropriate safety and soundness Appendix as ‘‘guidance.’’ credit union’s financial statements, the safeguards to prevent the following: Finally, the Board clarified several Board is adding requirements to the i. Masking deteriorations in loan statements of the Appendix to make it Appendix to apply to FICUs that engage portfolio quality and understating more consistent with plain language in this practice. charge-off levels; principles. Modifications of loans that result in ii. Delaying loss recognition resulting None of these changes were capitalization of unpaid interest are in an understated allowance for loan substantive and were outlined for appropriate only when the borrower has and lease losses account or inaccurate commenters in a redlined copy of the the ability to repay the debt in loan valuations; Appendix that the agency made accordance with the modification. At a iii. Overstating net income and net available in the rulemaking docket. minimum, if a FICU’s loan modification worth (regulatory capital) levels; and policy permits capitalization of unpaid iv. Circumventing internal controls. V. Regulatory Procedures interest, the policy must require each of the following: B. Technical Updates to Appendix B A. Regulatory Flexibility Act 1. Compliance with all applicable The Board also took this opportunity The Regulatory Flexibility Act consumer protection laws and to propose several technical changes to requires the NCUA to prepare an regulations, including, but not limited Appendix B to improve its clarity and analysis to describe any significant to, the Equal Credit Opportunity Act, update certain references. No economic impact a regulation may have the Fair Housing Act, the Truth In commenters opposed these changes, and on a substantial number of small Lending Act, the Real Estate Settlement the Board is adopting them as proposed. entities.18 For purposes of this analysis, Procedures Act, the Fair Credit For example, the final rule updates the NCUA considers small credit unions Reporting Act, and the prohibitions references to the NCUA’s or other to be those having under $100 million against the use of unfair, deceptive or guidance in the Appendix, such as in assets.19 The final rule allows FICUs abusive acts or practices contained in guidance or standards issued by other to capitalize unpaid interest when the Consumer Financial Protection Act federal banking agencies or the working with borrowers. The final rule of 2010. (The Board notes that FICUs are Financial Accounting Standards Board also expected to comply with applicable (FASB). These changes are intended to 17 81 FR 13530 (Mar. 14, 2016) (https:// State consumer protection laws that, in provide current information, and are not www.govinfo.gov/content/pkg/FR-2016-03-14/pdf/ some instances, may be more stringent substantive policy changes. 2016-03955.pdf). 18 5 U.S.C. 603(a). than Federal law, prohibiting, for In May 2014, FASB issued an 19 80 FR 57512 (Sept. 24, 2015) (https:// example, the charging of interest on accounting standard update for revenue www.govinfo.gov/content/pkg/FR-2015-09-24/pdf/ interest, subject to any case-by-case recognition (ASU 2014–09) which 2015-24165.pdf).

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is not expected to increase the cost subject to a delayed effective date if the deferrals, renewals, or rewrites. See the burden for FICUs. Accordingly, the rule is a ‘‘major rule.’’ The NCUA does Glossary entry on workouts for further NCUA certifies that the final rule will not believe this rule is a ‘‘major rule’’ descriptions of each term. Borrower retention not have a significant economic impact within the meaning of the relevant programs or new loans are not encompassed within this policy nor considered by the on a substantial number of small credit sections of SBREFA. As required by Board to be workout loans. unions. SBREFA, the NCUA will submit this A credit union can use loan workouts to final rule to OMB for it to determine if B. Paperwork Reduction Act help borrowers overcome temporary financial the final rule is a ‘‘major rule’’ for difficulties such as loss of job, medical The Paperwork Reduction Act of 1995 purposes of SBREFA. The NCUA also emergency, or change in family (PRA) (44 U.S.C. 3501 et seq.) requires will file appropriate reports with circumstances such as the loss of a family that the Office of Management and Congress and the Government member. Loan workout arrangements must Budget (OMB) approve all collections of Accountability Office so this rule may consider and balance the best interests of both the borrower and the credit union. information by a Federal agency from be reviewed. the public before they can be The lack of a sound written policy on List of Subjects in 12 CFR Part 741 workouts can mask the true performance and implemented. Respondents are not past due status of the loan portfolio. required to respond to any collection of Credit, Credit unions, Share Accordingly, the credit union board and information unless it displays a valid insurance. management must adopt and adhere to an OMB control number. In accordance By the National Credit Union explicit written policy and standards that with the PRA, the information Administration Board on June 24, 2021. control the use of loan workouts, and collection requirements included in this Melane Conyers-Ausbrooks, establish controls to ensure the policy is consistently applied. The loan workout final rule have been submitted to OMB Secretary of the Board. for approval under control number policy and practices should be 3133–0092. For the reasons discussed in the commensurate with a credit union’s size and preamble, the Board amends 12 CFR complexity, and must conform with a credit C. Executive Order 13132 part 741 as follows: union’s broader risk mitigation strategies. The policy must define eligibility Executive Order 13132 encourages PART 741—REQUIREMENTS FOR requirements (that is, under what conditions independent regulatory agencies to INSURANCE the credit union will consider a loan consider the impact of their actions on workout), including establishing limits on state and local interests. In adherence to ■ 1. The authority citation for part 741 the number of times an individual loan may 3 fundamental federalism principles, the continues to read as follows: be modified. The policy must also ensure NCUA, an independent regulatory credit unions make loan workout decisions agency as defined in 44 U.S.C. 3502(5), Authority: 12 U.S.C. 1757, 1766(a), 1781– based on a borrower’s renewed willingness 1790, and 1790d; 31 U.S.C. 3717. voluntarily complies with the executive and ability to repay the loan. If a credit union order. This rulemaking will not have a ■ 2. Appendix B to Part 741 is revised restructures a loan more frequently than once to read as follows: a year or twice in five years, examiners will substantial direct effect on the states, on have higher expectations for the the connection between the National Appendix B to Part 741—Loan documentation of the borrower’s renewed Government and the states, or on the Workouts, Nonaccrual Policy, and willingness and ability to repay the loan. The distribution of power and Regulatory Reporting of Troubled Debt NCUA is concerned about restructuring responsibilities among the various Restructured Loans activity that pushes existing losses into levels of government. The NCUA has future reporting periods without improving a determined that this final rule does not This Appendix establishes requirements loan’s collectability. One way a credit union for the management of loan workout 1 can provide convincing evidence that constitute a policy that has federalism arrangements, loan nonaccrual, and implications for purposes of the multiple restructurings improve collectability regulatory reporting of troubled debt is to validate completed multiple executive order. restructured loans (herein after referred to as restructurings that substantiate the claim. TDR or TDRs). This Appendix applies to all Examiners will ask for such validation D. Assessment of Federal Regulations federally insured credit unions. and Policies on Families documentation if a credit union engages in Under this Appendix, TDRs are as defined multiple restructurings of a loan. The NCUA has determined that this in generally accepted accounting principles In addition, the policy must establish final rule will not affect family well- (GAAP), and the Board does not intend to sound controls to ensure loan workout being within the meaning of Section 654 change the Financial Accounting Standards actions are appropriately structured.4 The of the Treasury and General Board’s (FASB) definition of TDR in any way through this policy. In addition to existing 3 Broad based credit union programs commonly Government Appropriations Act, agency policy, this Appendix sets the 20 used as a member benefit and implemented in a 1999. NCUA’s supervisory expectations governing safe and sound manner limited to only accounts in E. Small Business Regulatory loan workout policies and practices and loan good standing, such as Skip-a-Pay programs, are not accruals. intended to count toward these limits. Enforcement Fairness Act 4 In developing a written policy, the credit union Written Loan Workout Policy and The Small Business Regulatory board and management may wish to consider Monitoring Requirements 2 Enforcement Fairness Act of 1996 similar parameters as those established in the FFIEC’s ‘‘Uniform Retail Credit Classification and (SBREFA) 21 generally provides for For purposes of this Appendix, types of workout loans to borrowers in financial Account Management Policy’’ (FFIEC Policy). 65 FR congressional review of agency rules. A difficulties include re-agings, extensions, 36903 (June 12, 2000) (https://www.govinfo.gov/ reporting requirement is triggered in content/pkg/FR-2000-06-12/pdf/00-14704.pdf). The instances where the NCUA issues a final FFIEC Policy sets forth specific limitations on the 1 Terms defined in the Glossary will be italicized number of times a loan can be re-aged (for open- rule as defined by section 551 of the on their first use in the body of this =Appendix. end accounts) or extended, deferred, renewed or Administrative Procedure Act. An 2 For additional guidance on commercial and rewritten (for closed-end accounts). NCUA Letter to agency rule, in addition to being subject member business lending extension, deferral, Credit Unions (LCU) 09–CU–19, ‘‘Evaluating to congressional oversight, may also be renewal, and rewrite policies, see Interagency Residential Real Estate Mortgage Loan Modification Policy Statement on Prudent Commercial Real Programs,’’ also outlines policy best practices for Estate Loan Workouts (October 30, 2009) real estate modifications (https://www.ncua.gov/ 20 Public Law 105–277, 112 Stat. 2681 (1998). transmitted by Letter to Credit Unions No. 10–CU– regulation-supervision/letters-credit-unions-other- 21 5 U.S.C. 551. 07, and available at http://www.ncua.gov. Continued

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policy must explicitly prohibit the ii. Delaying loss recognition resulting in an place loans in nonaccrual status when doubt authorization of additional advances to understated allowance for loan and lease exists as to full collection of principal and finance credit union fees and commissions. losses account or inaccurate loan valuations; interest or the loan has been in default for a The credit union may, however, make iii. Overstating net income and net worth period of 90 days or more. Upon placing a advances to cover third-party fees, such as (regulatory capital) levels; and loan in nonaccrual, a credit union must force-placed insurance or property taxes. For iv. Circumventing internal controls. reverse or charge-off previously accrued but loan workouts granted, a credit union must The credit union’s risk management uncollected interest. A nonaccrual loan may document the determination that the framework must include thresholds, based on be returned to accrual status when a credit borrower is willing and able to repay the aggregate volume of loan workout activity, union expects repayment of the remaining loan. which trigger enhanced reporting to the contractual principal and interest or it is well Modifications of loans that result in board of directors. This reporting will enable secured and in process of collection.7 This capitalization of unpaid interest are the credit union’s board of directors to policy on loan accrual is consistent with appropriate only when a borrower has the evaluate the effectiveness of the credit longstanding credit union industry practice ability to repay the debt. At a minimum, if union’s loan workout program, understand as implemented by the NCUA over the last a FICU’s loan modification policy permits any implications to the organization’s several decades. The balance of the policy capitalization of unpaid interest, the policy financial condition, and make any relates to commercial and member business must require: compensating adjustments to the overall loan workouts and is similar to the policies 1. Compliance with all applicable federal business strategy. This information will also adopted by the federal banking agencies 8 as and state consumer protection laws and be available to examiners upon request. set forth in the FFIEC Call Report for banking regulations, including, but not limited to, the To be effective, management information institutions and its instructions.9 Equal Credit Opportunity Act, the Fair systems need to track the principal Nonaccrual Status Housing Act, the Truth In Lending Act, the reductions and charge-off history of loans in Real Estate Settlement Procedures Act, the workout programs by type of program. Any Credit unions may not accrue interest 10 on Fair Credit Reporting Act, and the decision to re-age, extend, defer, renew, or any loan where principal or interest has been prohibitions against the use of unfair, rewrite a loan, like any other revision to in default for a period of 90 days or more deceptive or abusive acts or practices in the contractual terms, must be supported by the unless the loan is both ‘‘well secured’’ and Consumer Financial Protection Act of 2010. credit union’s management information ‘‘in the process of collection.’’ 11 For 2. Documentation that reflects a borrower’s systems. Sound management information purposes of applying the ‘‘well secured’’ and ability to repay, a borrower’s source(s) of systems identify and document any loan that ‘‘in process of collection’’ test for nonaccrual repayment, and when appropriate, is re-aged, extended, deferred, renewed, or status listed above, the date on which a loan compliance with the FICU’s valuation rewritten, including the frequency and extent reaches nonaccrual status is determined by policies at the time the modification is of such action. Documentation normally its contractual terms. approved. shows that credit union personnel While a loan is in nonaccrual status, a 3. Providing borrowers with written communicated with the borrower, the credit union may treat some or all of the cash disclosures that are accurate, clear and borrower agreed to pay the loan in full under payments received as interest income on a conspicuous and that are consistent with any new terms, and the borrower has the cash basis provided no doubt exists about the Federal and state consumer protection laws. ability to repay the loan under any new collectability of the remaining recorded 4. Appropriate reporting of loan status for terms. investment in the loan. A credit union must modified loans in accordance with applicable handle the reversal of previously accrued, Regulatory Reporting of Workout Loans but uncollected, interest applicable to any law and accounting practices. The FICU shall Including TDR Past Due Status not report a modified loan as past due if the loan placed in nonaccrual status in 12 loan was current prior to modification and Credit unions will calculate the past due accordance with GAAP. the borrower is complying with the terms of status of all loans consistent with loan the modification. contract terms, including amendments made 7 Placing a loan in nonaccrual status does not 5. Prudent policies and procedures to help to loan terms through a formal restructure. change the loan agreement or the obligations Credit unions will report delinquency on the borrowers resume affordable and sustainable between the borrower and the credit union. Only Call Report consistent with this policy.6 the parties can effect a restructuring of the original repayments that are appropriately structured, loan terms or otherwise settle the debt. while at the same time minimizing losses to Loan Nonaccrual Policy 8 The federal banking agencies are the Board of the credit union. The prudent policies and Credit unions must recognize interest Governors of the Federal Reserve System, the procedures must consider income appropriately. Credit unions must Federal Deposit Insurance Corporation, and the i. Whether the loan modifications are well- Office of the Comptroller of the Currency. designed, consistently applied, and provide a 9 FFIEC Report of Condition and Income Forms, pooled loans to account for any loans with favorable outcome for borrowers. Instructions and Supplemental Instructions, https:// protracted charge-off timeframes (for example, 12 www.ffiec.gov/forms041.htm. ii. The available options for borrowers to months or more). See discussions on the latter point 10 repay any missed payments at the end of in the 2006 Interagency ALLL Policy Statement Nonaccrual of interest also includes the their modifications to avoid delinquencies or transmitted by Accounting Bulletin 06–1 (December amortization of deferred net loan fees or costs, or other adverse consequences. 2006) (https://www.ncua.gov/regulation- the accretion of discount. Nonaccrual of interest on 6. Appropriate safety and soundness supervision/letters-credit-unions-other-guidance/ loans past due 90 days or more is a longstanding interagency-advisory-addressing-alll-key-concepts- agency policy and credit union practice. safeguards to prevent the following: 11 i. Masking deteriorations in loan portfolio and-requirements). Upon implementation of ASC A purchased credit impaired loan asset need not be placed in nonaccrual status as long as the quality and understating charge-off levels; 5 326—Financial Instruments—Credit Losses, credit unions will use the guidance in Interagency Policy criteria for accrual of income under the interest Statement on Allowances for Credit Losses (May method in GAAP is met. Also, the accrual of guidance/evaluating-residential-real-estate- 2020) (https://www.ncua.gov/files/press-releases- interest on workout loans is covered in a later mortgage-loan-modification-programs). Those best news/policy-statement-allowances-credit- section of this Appendix. practices remain applicable to real estate loan losses.pdf). 12 Acceptable accounting treatment includes a modifications (with the exception to the 6 Subsequent Call Reports and accompanying reversal of all previously accrued, but uncollected, capitalization of credit union fees) but could be instructions will reflect this policy, including interest applicable to loans placed in a nonaccrual adapted in part by the credit union in their written focusing data collection on loans meeting the status against appropriate income and balance sheet loan workout policy for other loans. definition of TDR under GAAP. In reporting TDRs accounts. For example, one acceptable method of 5 Refer to NCUA guidance on charge-offs set forth on regulatory reports, the data collections will accounting for such uncollected interest on a loan in LCU 03–CU–01, ‘‘Loan Charge-off Guidance,’’ include all TDRs that meet the GAAP criteria for placed in nonaccrual status is to reverse all of the dated January 2003 (https://www.ncua.gov/ TDR reporting, without the application of unpaid interest by crediting the ‘‘accrued interest regulation-supervision/letters-credit-unions-other- materiality threshold exclusions based on scoping receivable’’ account on the balance sheet; to reverse guidance/loan-charge-guidance). Examiners will or reporting policy elections of credit union the uncollected interest that has been accrued require that a reasonable written charge-off policy preparers or their auditors. Credit unions should during the calendar year-to-date by debiting the is in place and that it is consistently applied. also refer to ASC Subtopic 310–40 when appropriate ‘‘interest and fee income on loans’’ Additionally, credit unions need to adjust historical determining if a restructuring of a debt constitutes account on the income statement, and to reverse loss factors when calculating ALLL needs for a TDR. any uncollected interest that had been accrued

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Restoration to Accrual Status for All Loans Restoration to Accrual Status on responsibility to promptly charge off all Except Commercial and Member Business Commercial and Member Business Loan identified losses. Loan Workouts Workouts 13 The following graph provides an example A nonaccrual loan may be restored to A formally restructured commercial or of a schedule of repayment performance to accrual status when: member business loan workout need not be demonstrate a determination of six consecutive payments. If the original loan • Its past due status is less than 90 days maintained in nonaccrual status, provided the restructuring and any charge-off taken on terms required a monthly payment of $1,500, and the credit union expects repayment of the loan are supported by a current, well- and the credit union lowered the borrower’s the remaining contractual principal and documented credit evaluation of the payment to $1,000 through formal interest within a reasonable period; borrower’s financial condition and prospects commercial or member business loan • It otherwise becomes both well secured for repayment under the revised terms. restructure, then based on the first row of the and in the process of collection; or Otherwise, the restructured loan must remain graph, the ‘‘sustained historical repayment • The asset is a purchased impaired loan in nonaccrual status. performance for a reasonable time prior to and it meets the criteria under GAAP for The credit union’s evaluation must include the restructuring’’ would encompass five of accrual of interest income under the consideration of the borrower’s sustained the pre-workout consecutive payments that accretable yield method. See ASC 310–30. historical repayment performance for a were at least $1,000 (months 1 through 5). In reasonable period prior to the date on which In restoring all loans to accrual status, if total, the six consecutive repayment burden the loan is returned to accrual status. A the credit union applied any interest would be met by the first month post sustained period of repayment performance workout (month 6). payments received while the loan was in is a minimum of six consecutive payments, In the second row, only one of the pre- nonaccrual status to reduce the recorded and includes timely payments under the workout payments would count toward the investment in the loan, the credit union must restructured loan’s terms of principal and six consecutive repayment requirement not reverse the application of these payments interest in cash or cash equivalents. In (month 5), because it is the first month in to the loan’s recorded investment (and must returning the commercial or member business workout loan to accrual status, a which the borrower made a payment of at not credit interest income). Likewise, a credit least $1,000 after failing to pay at least that union cannot restore the accrued but credit union may consider sustained historical repayment performance for a amount. Therefore, the loan would remain on uncollected interest reversed or charged-off reasonable time prior to the restructuring. nonaccrual for at least five post-workout at the point the loan was placed on Such a restructuring must improve the consecutive payments (months 6 through 10) nonaccrual status to accrual; it can only be collectability of the loan in accordance with provided the borrower continues to make recognized as income if collected in cash or a reasonable repayment schedule and does payments consistent with the restructured cash equivalents from the member. not relieve the credit union from the terms.

Pre-workout Post-workout Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

$1,500 $1,200 $1,200 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 1,500 1,200 900 875 1,000 1,000 1,000 1,000 1,000 1,000

After a formal restructure of a commercial recorded investment in the loan the be restored to accrual; it can only be or member business loan, if the restructured application of these payments to the loan’s recognized as income if collected in cash or loan has been returned to accrual status, the recorded investment must not be reversed cash equivalents from the member. loan otherwise remains subject to the (and interest income must not be credited). The following tables summarize nonaccrual standards of this policy. If any Likewise, accrued but uncollected interest nonaccrual and restoration to accrual interest payments received while the reversed or charged-off at the point the commercial or member business loan was in commercial or member business workout requirements previously discussed: nonaccrual status were applied to reduce the loan was placed on nonaccrual status cannot

TABLE 1—NONACCRUAL CRITERIA

Action Condition identified Additional consideration

Nonaccrual on All Loans ...... 90 days or more past due unless loan is both well-se- See Glossary definitions for ‘‘well secured’’ and ‘‘in the cured and in the process of collection; or process of collection.’’ The loan is maintained on the Cash basis because there is a deterioration in the financial condition of the borrower, or for which payment in full of principal or interest is not expected. Nonaccrual on Commercial Continue on nonaccrual at workout point and until re- See Table 2—Restore to Accrual. or Member Business Loan store to accrual criteria are met. Workouts.

during previous calendar years by debiting the loan and lease losses’’ on the income statement 13 This policy is derived from the ‘‘Interagency ‘‘allowance for loan and lease losses’’ account on have been based on an evaluation of the Policy Statement on Prudent Commercial Real the balance sheet. The use of this method presumes collectability of the loan and lease portfolios and Estate Loan Workouts’’ the NCUA and the other that credit union management’s additions to the the ‘‘accrued interest receivable’’ account. financial regulators issued on October 30, 2009. allowance through charges to the ‘‘provision for

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TABLE 2—RESTORE TO ACCRUAL

Action Condition identified Additional consideration

Restore to Accrual on All When a loan is less than 90 days past due and the See Glossary definitions for ‘‘well secured’’ and ‘‘in the Loans except Commercial credit union expects repayment of the remaining con- process of collection.’’ Interest payments received or Member Business Loan tractual principal and interest within a reasonable pe- while the loan was in nonaccrual status and applied Workouts. riod, or to reduce the recorded investment in the loan must When it otherwise becomes both ‘‘well secured’’ and not be reversed and income credited. Likewise, ac- ‘‘in the process of collection’’; or crued but uncollected interest reversed or charged-off The asset is a purchased impaired loan and it meets at the point the loan was placed on nonaccrual status the criteria under GAAP (see ASC 310–30) for ac- cannot be restored to accrual. crual of interest income under the accretable yield method. Restore to Accrual on Com- Formal restructure with a current, well documented The evaluation must include consideration of the bor- mercial or Member Busi- credit evaluation of the borrower’s financial condition rower’s sustained historical repayment performance ness Loan Workouts. and prospects for repayment under the revised for a minimum of six timely consecutive payments terms. comprised of principal and interest. In returning a loan to accrual status, a credit union may take into account sustained historical repayment performance for a reasonable time prior to the restructured terms. Interest payments received while the commercial or member business loan was in nonaccrual status and applied to reduce the recorded investment in the loan must not be reversed and income credited. Accrued but uncollected interest reversed or charged- off at the point the commercial or member business loan was placed on nonaccrual status cannot be restored to accrual.

Glossary 14 preparation of financial statements by ‘‘Recorded Investment in a Loan’’ means ‘‘Capitalization of Interest’’ constitutes the federally insured credit unions in the United the loan balance adjusted for any addition of accrued but unpaid interest to the States with assets of $10 million or more. unamortized premium or discount and principal balance of a loan. ‘‘In the process of collection’’ means unamortized loan fees or costs, less any ‘‘Cash Basis’’ method of income collection of the loan is proceeding in due amount previously charged off, plus recorded recognition is set forth in GAAP and means course either: accrued interest. while a loan is in nonaccrual status, some or (1) Through legal action, including ‘‘Troubled Debt Restructuring’’ is as all of the cash interest payments received judgment enforcement procedures, or defined in GAAP and means a restructuring may be treated as interest income on a cash (2) In appropriate circumstances, through in which a credit union, for economic or basis provided no doubt exists about the collection efforts not involving legal action legal reasons related to a member borrower’s collectability of the remaining recorded which are reasonably expected to result in financial difficulties, grants a concession to investment in the loan.15 repayment of the debt or in its restoration to the borrower that it would not otherwise ‘‘Charge-off’’ means a direct reduction a current status in the near future, i.e., consider.16 The restructuring of a loan may (credit) to the carrying amount of a loan generally within the next 90 days. include, but is not necessarily limited to: carried at amortized cost resulting from ‘‘Member Business Loan’’ is defined (1) The transfer from the borrower to the uncollectability with a corresponding consistent with § 723.8 of the NCUA’s credit union of real estate, receivables from reduction (debit) of the ALLL. Recoveries of MEMBER BUSINESS LOANS; third parties, other assets, or an equity loans previously charged off must be COMMERCIAL LENDING Rule, 12 CFR interest in the borrower in full or partial recorded when received. 723.8. satisfaction of the loan, ‘‘Commercial Loan’’ is defined consistent (2) A modification of the loan terms, such with Section 723.2 of the NCUA’s MEMBER ‘‘New Loan’’ means the terms of the revised BUSINESS LOANS; COMMERCIAL loan are at least as favorable to the credit as a reduction of the stated interest rate, LENDING Rule, 12 CFR 723.2. union (i.e., terms are market-based, and profit principal, or accrued interest or an extension ‘‘Generally accepted accounting principles driven) as the terms for comparable loans to of the maturity date at a stated interest rate (GAAP)’’ means official pronouncements of other customers with similar collection risks lower than the current market rate for new the FASB as memorialized in the FASB who are not refinancing or restructuring a debt with similar risk, or Accounting Standards Codification® as the loan with the credit union, and the revisions (3) A combination of the above. source of authoritative principles and to the original debt are more than minor. A loan extended or renewed at a stated standards recognized to be applied in the ‘‘Past Due’’ means a loan is determined to interest rate equal to the current market be delinquent in relation to its contractual interest rate for new debt with similar risk is 14 Terms defined in the Glossary will be italicized repayment terms including formal not to be reported as a restructured troubled on their first use in the body of this guidance. restructures, and must consider the time loan. 15 Acceptable accounting practices include value of money. Credit unions may use the ‘‘Well secured’’ means the loan is allocating contractual interest payments among following method to recognize partial collateralized by: (1) A perfected security interest income, reduction of the recorded payments on ‘‘consumer credit,’’ i.e., credit interest in, or pledges of, real or personal investment in the asset, and recovery of prior property, including securities with an charge-offs. If this method is used, the amount of extended to individuals for household, income that is recognized would be equal to that family, and other personal expenditures, estimable value, less cost to sell, sufficient to which would have been accrued on the loan’s including credit cards, and loans to recover the recorded investment in the loan, remaining recorded investment at the contractual individuals secured by their personal as well as a reasonable return on that rate; and, accounting for the contractual interest in residence, including home equity and home amount, or (2) by the guarantee of a its entirety either as income, reduction of the improvement loans. A payment equivalent to financially responsible party. recorded investment in the asset, or recovery of prior charge-offs, depending on the condition of the 90 percent or more of the contractual asset, consistent with its accounting policies for payment may be considered a full payment 16 FASB ASC 310–40, ‘‘Troubled Debt other financial reporting purposes. in computing past due status. Restructuring by Creditors.’’

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‘‘Workout Loan’’ means a loan to a –212A airplanes. This AD was 0097R1, dated May 28, 2020 (EASA AD borrower in financial difficulty that has been prompted by reports of defective seat 2020–0097R1) (also referred to as the formally restructured so as to be reasonably tracks. This AD requires a detailed Mandatory Continuing Airworthiness assured of repayment (of principal and visual inspection of each affected part Information, or the MCAI), to correct an interest) and of performance according to its restructured terms. A workout loan typically for deficiencies (sealant blockage and unsafe condition for certain ATR–GIE involves a re-aging, extension, deferral, out of tolerance ligaments), and Avions de Transport Re´gional Model renewal, or rewrite of a loan.17 For purposes depending on findings, accomplishment ATR42–300, –320, –400, and –500 of this policy statement, workouts do not of applicable corrective actions, as airplanes; and all Model ATR72–101, include loans made to market rates and terms specified in a European Union Aviation –102, –201, –202, –211, –212, and such as refinances, borrower retention Safety Agency (EASA) AD, which is –212A airplanes. Model ATR42–400 actions, or new loans.18 incorporated by reference. The FAA is airplanes are not certificated by the FAA ‘‘Extension’’ means extending monthly issuing this AD to address the unsafe and are not included on the U.S. type payments on a closed-end loan and rolling condition on these products. certificate data sheet; this AD therefore back the maturity by the number of months extended. The account is shown current DATES: This AD is effective August 4, does not include those airplanes in the upon granting the extension. If extension fees 2021. applicability. are assessed, they must be collected at the The Director of the Federal Register The FAA issued a notice of proposed time of the extension and not added to the approved the incorporation by reference rulemaking (NPRM) to amend 14 CFR balance of the loan. of a certain publication listed in this AD part 39 by adding an AD that would ‘‘Deferral’’ means deferring a contractually as of August 4, 2021. apply to certain ATR–GIE Avions de due payment on a closed-end loan without ADDRESSES: For material incorporated Transport Re´gional Model ATR42–300, affecting the other terms, including maturity, –320, and –500 airplanes; and all Model of the loan. The account is shown current by reference (IBR) in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 ATR72–101, –102, –201, –202, –211, upon granting the deferral. –212, and –212A airplanes. The NPRM ‘‘Renewal’’ means underwriting a matured, Cologne, Germany; telephone +49 221 closed-end loan generally at its outstanding 8999 000; email [email protected]; published in the Federal Register on principal amount and on similar terms. internet www.easa.europa.eu. You may September 9, 2020 (85 FR 55619). The ‘‘Rewrite’’ means significantly changing the find this IBR material on the EASA NPRM was prompted by reports of terms of an existing loan, including payment website at https://ad.easa.europa.eu. defective seat tracks. The NPRM amounts, interest rates, amortization You may view this IBR material at the proposed to require a detailed visual schedules, or its final maturity. FAA, Airworthiness Products Section, inspection of each affected part for [FR Doc. 2021–13906 Filed 6–29–21; 8:45 am] Operational Safety Branch, 2200 South deficiencies (sealant blockage and out of BILLING CODE 7535–01–P 216th St., Des Moines, WA. For tolerance ligaments), and depending on information on the availability of this findings, accomplishment of applicable material at the FAA, call 206–231–3195. corrective actions, as specified in EASA DEPARTMENT OF TRANSPORTATION It is also available in the AD docket on AD 2020–0097R1. the internet at https:// The FAA is issuing this AD to address Federal Aviation Administration www.regulations.gov by searching for a structural failure of the seat track and locating Docket No. FAA–2020– attachment during an emergency 14 CFR Part 39 0790. landing, possibly resulting in injury to occupants, and affecting emergency [Docket No. FAA–2020–0790; Project Examining the AD Docket evacuation. See the MCAI for additional Identifier 2020–NM–077–AD; Amendment background information. 39–21604; AD 2021–12–17] You may examine the AD docket on the internet at https:// Comments RIN 2120–AA64 www.regulations.gov by searching for and locating Docket No. FAA–2020– The FAA gave the public the Airworthiness Directives; ATR–GIE 0790; or in person at Docket Operations opportunity to participate in developing Avions de Transport Re´gional between 9 a.m. and 5 p.m., Monday this final rule. The FAA received no Airplanes through Friday, except Federal holidays. comments on the NPRM or on the determination of the cost to the public. AGENCY: Federal Aviation The AD docket contains this final rule, Administration (FAA), DOT. any comments received, and other Conclusion information. The address for Docket ACTION: Final rule. The FAA reviewed the relevant data Operations is U.S. Department of and determined that air safety and the SUMMARY: The FAA is adopting a new Transportation, Docket Operations, M– public interest require adopting this airworthiness directive (AD) for certain 30, West Building Ground Floor, Room final rule as proposed, except for minor ATR–GIE Avions de Transport Re´gional W12–140, 1200 New Jersey Avenue SE, editorial changes. The FAA has Model ATR42–300, –320, and –500 Washington, DC 20590. determined that these minor changes: airplanes; and all Model ATR72–101, FOR FURTHER INFORMATION CONTACT: • Are consistent with the intent that –102, –201, –202, –211, –212, and Shahram Daneshmandi, Aerospace was proposed in the NPRM for Engineer, Large Aircraft Section, addressing the unsafe condition; and 17 ‘‘Re-Age’’ means returning a past due account International Validation Branch, FAA, • Do not add any additional burden to current status without collecting the total amount 2200 South 216th St., Des Moines, WA upon the public than was already of principal, interest, and fees that are contractually 98198; phone and fax: 206–231–3220; due. proposed in the NPRM. email: [email protected]. 18 There may be instances where a workout loan Related Service Information Under 1 is not a TDR even though the borrower is SUPPLEMENTARY INFORMATION: experiencing financial hardship. For example, a CFR Part 51 workout loan would not be a TDR if the fair value Background EASA AD 2020–0097R1 specifies of cash or other assets accepted by a credit union from a borrower in full satisfaction of its receivable EASA, which is the Technical Agent procedures for a detailed visual is at least equal to the credit union’s recorded for the Member States of the European inspection of each affected seat track for investment in the loan, e.g., due to charge-offs. Union, has issued EASA AD 2020– deficiencies (sealant blockage and out of

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tolerance ligaments), and corrective available because the interested parties Costs of Compliance actions if necessary. Corrective actions have access to it through their normal The FAA estimates that this AD include replacement of seat track course of business or by the means affects 59 airplanes of U.S. registry. The sections, and replacement of the entire identified in the ADDRESSES section. FAA estimates the following costs to seat track. This material is reasonably comply with this AD:

ESTIMATED COSTS FOR REQUIRED ACTIONS

Cost per Cost on U.S. Labor cost Parts cost product operators

Up to 28 work-hours × $85 per hour = Up to $2,380 ...... $0 Up to $2,380 ...... Up to $140,420.

The FAA estimates the following based on the results of any required might need these on-condition costs to do any necessary on-condition actions. The FAA has no way of replacements: replacements that would be required determining the number of aircraft that

ESTIMATED COSTS OF ON-CONDITION ACTIONS

Cost per Labor cost Parts cost product

172 work-hours × $85 per hour = $14,620 ...... (*) $14,620 * The FAA has received no definitive data that would enable us to provide parts cost estimates for the on-condition replacements specified in this AD.

Authority for This Rulemaking (3) Will not have a significant paragraphs (c)(1) and (2) of this AD, certificated in any category. Title 49 of the United States Code economic impact, positive or negative, (1) Model ATR42–300, –320, and –500 specifies the FAA’s authority to issue on a substantial number of small entities airplanes, all manufacturer serial numbers, rules on aviation safety. Subtitle I, under the criteria of the Regulatory Flexibility Act. except manufacturer serial numbers 001 section 106, describes the authority of through 362 inclusive. the FAA Administrator. Subtitle VII: List of Subjects in 14 CFR Part 39 (2) ATR72–101, –102, –201, –202, –211, Aviation Programs, describes in more Air transportation, Aircraft, Aviation –212, and –212A airplanes, all manufacturer detail the scope of the Agency’s safety, Incorporation by reference, serial numbers. authority. Safety. The FAA is issuing this rulemaking (d) Subject under the authority described in Adoption of the Amendment Air Transport Association (ATA) of Subtitle VII, Part A, Subpart III, Section Accordingly, under the authority America Code 53, Fuselage. 44701: General requirements. Under delegated to me by the Administrator, (e) Reason that section, Congress charges the FAA the FAA amends 14 CFR part 39 as This AD was prompted by reports of with promoting safe flight of civil follows: aircraft in air commerce by prescribing defective seat tracks. The FAA is issuing this AD to address a structural failure of the seat regulations for practices, methods, and PART 39—AIRWORTHINESS track attachment during an emergency procedures the Administrator finds DIRECTIVES landing, possibly resulting in injury to necessary for safety in air commerce. occupants, and affecting emergency ■ This regulation is within the scope of 1. The authority citation for part 39 evacuation. that authority because it addresses an continues to read as follows: (f) Compliance unsafe condition that is likely to exist or Authority: 49 U.S.C. 106(g), 40113, 44701. develop on products identified in this Comply with this AD within the rulemaking action. § 39.13 [Amended] compliance times specified, unless already ■ done. Regulatory Findings 2. The FAA amends § 39.13 by adding the following new airworthiness (g) Requirements This AD will not have federalism directive: implications under Executive Order Except as specified in paragraph (h) of this 13132. This AD will not have a 2021–12–17 ATR–GIE Avions de Transport AD: Comply with all required actions and Re´gional: Amendment 39–21604; Docket compliance times specified in, and in substantial direct effect on the States, on No. FAA–2020–0790; Project Identifier the relationship between the national accordance with, European Union Aviation 2020–NM–077–AD. Safety Agency (EASA) AD 2020–0097R1, government and the States, or on the (a) Effective Date dated May 28, 2020 (EASA AD 2020– distribution of power and 0097R1). responsibilities among the various This airworthiness directive (AD) is levels of government. effective August 4, 2021. (h) Exceptions to EASA AD 2020–0097R1 For the reasons discussed above, I (b) Affected ADs (1) Where EASA AD 2020–0097R1 refers to certify that this AD: None. May 18, 2020 (the effective date of its original (1) Is not a ‘‘significant regulatory issue), this AD requires using the effective action’’ under Executive Order 12866, (c) Applicability date of this AD. (2) Will not affect intrastate aviation This AD applies to the ATR–GIE Avions de (2) The ‘‘Remarks’’ section of EASA AD in Alaska, and Transport Re´gional airplanes identified in 2020–0097R1 does not apply to this AD.

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(i) No Reporting Requirement (i) European Union Aviation Safety Agency DATES: This AD is effective August 4, Although the service information (EASA) AD 2020–0097R1, dated May 28, 2021. referenced in EASA AD 2020–0097R1 2020. The Director of the Federal Register specifies to submit certain information to the (ii) [Reserved] approved the incorporation by reference manufacturer, this AD does not include that (3) For EASA AD 2020–0097R1, contact of a certain publication listed in this AD requirement. EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221 8999 as of August 4, 2021. (j) Other FAA AD Provisions 000; email [email protected]; Internet ADDRESSES: For material incorporated The following provisions also apply to this www.easa.europa.eu. You may find this by reference (IBR) in this AD, contact AD: EASA AD on the EASA website at https:// EASA, Konrad-Adenauer-Ufer 3, 50668 (1) Alternative Methods of Compliance ad.easa.europa.eu. Cologne, Germany; telephone +49 221 (AMOCs): The Manager, Large Aircraft (4) You may view this material at the FAA, 8999 000; email [email protected]; Section, International Validation Branch, Airworthiness Products Section, Operational internet www.easa.europa.eu. You may Safety Branch, 2200 South 216th St., Des FAA, has the authority to approve AMOCs find this IBR material on the EASA for this AD, if requested using the procedures Moines, WA. For information on the found in 14 CFR 39.19. In accordance with availability of this material at the FAA, call website at https://ad.easa.europa.eu. 14 CFR 39.19, send your request to your 206–231–3195. This material may be found You may view this IBR material at the principal inspector or responsible Flight in the AD docket on the internet at https:// FAA, Airworthiness Products Section, Standards Office, as appropriate. If sending www.regulations.gov by searching for and Operational Safety Branch, 2200 South information directly to the Large Aircraft locating Docket No. FAA–2020–0790. 216th St., Des Moines, WA. For Section, International Validation Branch, (5) You may view this material that is information on the availability of this send it to the attention of the person incorporated by reference at the National material at the FAA, call 206–231–3195. identified in paragraph (k) of this AD. Archives and Records Administration It is also available in the AD docket on Information may be emailed to: 9-AVS-AIR- (NARA). For information on the availability [email protected]. Before using any of this material at NARA, email fedreg.legal@ the internet at https:// approved AMOC, notify your appropriate nara.gov, or go to: https://www.archives.gov/ www.regulations.gov by searching for principal inspector, or lacking a principal federal-register/cfr/ibr-locations.html. and locating Docket No. FAA–2021– 0184. inspector, the manager of the responsible Issued on June 6, 2021. Flight Standards Office. (2) Contacting the Manufacturer: For any Lance T. Gant, Examining the AD Docket requirement in this AD to obtain instructions Director, Compliance & Airworthiness You may examine the AD docket on from a manufacturer, the instructions must Division, Aircraft Certification Service. the internet at https:// be accomplished using a method approved [FR Doc. 2021–13782 Filed 6–29–21; 8:45 am] www.regulations.gov by searching for by the Manager, Large Aircraft Section, BILLING CODE 4910–13–P and locating Docket No. FAA–2021– International Validation Branch, FAA; or EASA; or ATR–GIE Avions de Transport 0184; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday Re´gional’s EASA Design Organization DEPARTMENT OF TRANSPORTATION Approval (DOA). If approved by the DOA, through Friday, except Federal holidays. The AD docket contains this final rule, the approval must include the DOA- Federal Aviation Administration authorized signature. any comments received, and other (3) Required for Compliance (RC): Except information. The address for Docket 14 CFR Part 39 as required by paragraph (j)(2) of this AD, if Operations is U.S. Department of any service information contains procedures [Docket No. FAA–2021–0184; Project Transportation, Docket Operations, M– or tests that are identified as RC, those 30, West Building Ground Floor, Room procedures and tests must be done to comply Identifier MCAI–2020–01599–T; Amendment with this AD; any procedures or tests that are 39–21605; AD 2021–12–18] W12–140, 1200 New Jersey Avenue SE, not identified as RC are recommended. Those Washington, DC 20590. procedures and tests that are not identified RIN 2120–AA64 FOR FURTHER INFORMATION CONTACT: as RC may be deviated from using accepted Vladimir Ulyanov, Aerospace Engineer, Airworthiness Directives; Airbus SAS methods in accordance with the operator’s Large Aircraft Section, International Airplanes maintenance or inspection program without Validation Branch, FAA, 2200 South obtaining approval of an AMOC, provided AGENCY: Federal Aviation 216th St., Des Moines, WA 98198; the procedures and tests identified as RC can telephone and fax 206–231–3229; email be done and the airplane can be put back in Administration (FAA), DOT. an airworthy condition. Any substitutions or ACTION: Final rule. [email protected]. changes to procedures or tests identified as SUPPLEMENTARY INFORMATION: RC require approval of an AMOC. SUMMARY: The FAA is adopting a new airworthiness directive (AD) for all Background (k) Related Information Airbus SAS Model A330–200, A330– EASA, which is the Technical Agent For more information about this AD, 200 Freighter, A330–300, A340–200, for the Member States of the European contact Shahram Daneshmandi, Aerospace and A340–300 series airplanes. This AD Union, has issued EASA AD 2020–0265, Engineer, Large Aircraft Section, International Validation Branch, FAA, 2200 was prompted by a report that the dated December 2, 2020 (EASA AD South 216th St., Des Moines, WA 98198; auxiliary power unit (APU) aft fuel 2020–0265) (also referred to as the phone and fax: 206–231–3220; email: pump printed circuit board (PCB) Mandatory Continuing Airworthiness [email protected]. varnish had deteriorated; the varnish is Information, or the MCAI), to correct an one of the layers of protection against unsafe condition for all Airbus SAS (l) Material Incorporated by Reference development of an ignition source. This Model A330–201, A330–202, A330–203, (1) The Director of the Federal Register AD requires replacing each affected A330–223, A330–243, A330–223F, approved the incorporation by reference APU aft fuel pump, as specified in a A330–243F, A330–301, A330–302, (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR European Union Aviation Safety Agency A330–303, A330–321, A330–322, A330– part 51. (EASA) AD, which is incorporated by 323, A330–341, A330–342, A330–343, (2) You must use this service information reference. The FAA is issuing this AD A340–211, A340–212, A340–213, A340– as applicable to do the actions required by to address the unsafe condition on these 311, A340–312, and A340–313 this AD, unless this AD specifies otherwise. products. airplanes.

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The FAA issued a notice of proposed airplane. See the MCAI for additional • Do not add any additional burden rulemaking (NPRM) to amend 14 CFR background information. upon the public than was already part 39 by adding an AD that would Comments proposed in the NPRM. apply to all Airbus SAS Model A330– 200, A330–200 Freighter, A330–300, The FAA gave the public the Related Service Information Under 1 A340–200, and A340–300 series opportunity to participate in developing CFR Part 51 airplanes. The NPRM published in the this final rule. The FAA has considered EASA AD 2020–0265 specifies Federal Register on March 22, 2021 (86 the comment received. The Air Line procedures for replacing each affected FR 15151). The NPRM was prompted by Pilots Association, International (ALPA) a report that the APU aft fuel pump PCB indicated its support for the NPRM. APU aft fuel pump. This material is varnish had deteriorated; the varnish is reasonably available because the Conclusion one of the layers of protection against interested parties have access to it development of an ignition source. The The FAA reviewed the relevant data, through their normal course of business NPRM proposed to require replacing considered the comment received, and or by the means identified in the each affected APU aft fuel pump, as determined that air safety and the ADDRESSES section. public interest require adopting this specified in EASA AD 2020–0265. Costs of Compliance The FAA is issuing this AD to address final rule as proposed, except for minor PCB varnish deterioration. This editorial changes. The FAA has The FAA estimates that this AD condition, if not addressed, could, in determined that these minor changes: affects 112 airplanes of U.S. registry. • case of a spark or flame in the area of Are consistent with the intent that The FAA estimates the following costs the pump PCB, result in a fire or was proposed in the NPRM for to comply with this AD: explosion and consequent loss of the addressing the unsafe condition; and

ESTIMATED COSTS FOR REQUIRED ACTIONS

Cost per Cost on U.S. Labor cost Parts cost product operators

4 work-hours × $85 per hour = $340 ...... $7,000 $7,340 $822,080

According to the manufacturer, some substantial direct effect on the States, on § 39.13 [Amended] or all of the costs of this AD may be the relationship between the national ■ 2. The FAA amends § 39.13 by adding covered under warranty, thereby government and the States, or on the the following new airworthiness reducing the cost impact on affected distribution of power and directive: operators. The FAA does not control responsibilities among the various 2021–12–18 Airbus SAS: Amendment 39– warranty coverage for affected operators. levels of government. 21605; Docket No. FAA–2021–0184; As a result, the FAA has included all For the reasons discussed above, I Project Identifier MCAI–2020–01599–T. known costs in the cost estimate certify that this AD: (a) Effective Date Authority for This Rulemaking (1) Is not a ‘‘significant regulatory This airworthiness directive (AD) is Title 49 of the United States Code action’’ under Executive Order 12866, effective August 4, 2021. specifies the FAA’s authority to issue (2) Will not affect intrastate aviation (b) Affected ADs rules on aviation safety. Subtitle I, in Alaska, and None. section 106, describes the authority of the FAA Administrator. Subtitle VII: (3) Will not have a significant (c) Applicability Aviation Programs, describes in more economic impact, positive or negative, This AD applies to all Airbus SAS detail the scope of the Agency’s on a substantial number of small entities airplanes, certificated in any category, authority. under the criteria of the Regulatory specified in paragraphs (c)(1) through (5) of The FAA is issuing this rulemaking Flexibility Act. this AD. (1) Model A330–201, –202, –203, –223, and under the authority described in List of Subjects in 14 CFR Part 39 –243 airplanes. Subtitle VII, Part A, Subpart III, Section (2) Model A330–223F and –243F airplanes. 44701: General requirements. Under Air transportation, Aircraft, Aviation (3) Model A330–301, –302, –303, –321, that section, Congress charges the FAA safety, Incorporation by reference, –322, –323, –341, –342, and –343 airplanes. with promoting safe flight of civil Safety. (4) Model A340–211, –212, and –213 aircraft in air commerce by prescribing airplanes. regulations for practices, methods, and Adoption of the Amendment (5) Model A340–311, –312, and –313 airplanes. procedures the Administrator finds Accordingly, under the authority (d) Subject necessary for safety in air commerce. delegated to me by the Administrator, This regulation is within the scope of the FAA amends 14 CFR part 39 as Air Transport Association (ATA) of that authority because it addresses an America Code 28, Fuel system. follows: unsafe condition that is likely to exist or (e) Reason develop on products identified in this PART 39—AIRWORTHINESS rulemaking action. This AD was prompted by a report that the DIRECTIVES auxiliary power unit (APU) aft fuel pump Regulatory Findings printed circuit board (PCB) varnish had ■ deteriorated; the varnish is one of the layers This AD will not have federalism 1. The authority citation for part 39 continues to read as follows: of protection against development of an implications under Executive Order ignition source. The FAA is issuing this AD 13132. This AD will not have a Authority: 49 U.S.C. 106(g), 40113, 44701. to address PCB varnish deterioration. This

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condition, if not addressed, could, in case of be done and the airplane can be put back in SUMMARY: This action establishes Class a spark or flame in the area of the pump PCB, an airworthy condition. Any substitutions or E domestic en route airspace extending result in a fire or explosion and consequent changes to procedures or tests identified as upward from 1,200 feet above the loss of the airplane. RC require approval of an AMOC. surface at Great Falls, MT. This airspace (f) Compliance (k) Related Information facilitates vectoring of Instrument Flight Comply with this AD within the For more information about this AD, Rules (IFR) aircraft and it properly compliance times specified, unless already contact Vladimir Ulyanov, Aerospace contains IFR aircraft operating on direct done. Engineer, Large Aircraft Section, routes under the control of Salt Lake International Validation Branch, FAA, 2200 City Air Route Traffic Control Center (g) Requirements South 216th St., Des Moines, WA 98198; Except as specified in paragraph (h) of this telephone and fax 206–231–3229; email (ARTCC). AD: Comply with all required actions and [email protected]. DATES: Effective 0901 UTC, October 7, compliance times specified in, and in accordance with, European Union Aviation (l) Material Incorporated by Reference 2021. The Director of the Federal Safety Agency (EASA) AD 2020–0265, dated (1) The Director of the Federal Register Register approves this incorporation by December 2, 2020 (EASA AD 2020–0265). approved the incorporation by reference reference action under 1 CFR part 51, (IBR) of the service information listed in this subject to the annual revision of FAA (h) Exceptions to EASA AD 2020–0265 paragraph under 5 U.S.C. 552(a) and 1 CFR Order 7400.11 and publication of (1) Where EASA AD 2020–0265 refers to its part 51. conforming amendments. effective date, this AD requires using the (2) You must use this service information effective date of this AD. as applicable to do the actions required by ADDRESSES: FAA Order 7400.11E, (2) The ‘‘Remarks’’ section of EASA AD this AD, unless this AD specifies otherwise. Airspace Designations and Reporting 2020–0265 does not apply to this AD. (i) European Union Aviation Safety Agency Points, and subsequent amendments can (EASA) AD 2020–0265, dated December 2, (i) No Reporting Requirement be viewed online at https:// 2020. _ Although the service information (ii) [Reserved] www.faa.gov//air traffic/publications/. referenced in EASA AD 2020–0265 specifies (3) For EASA AD 2020–0265, contact For further information, you can contact to submit certain information to the EASA, Konrad-Adenauer-Ufer 3, 50668 the Airspace Policy Group, Federal manufacturer, this AD does not include that Cologne, Germany; telephone +49 221 8999 Aviation Administration, 800 requirement. 000; email [email protected]; internet Independence Avenue SW, Washington, (j) Other FAA AD Provisions www.easa.europa.eu. You may find this DC 20591; telephone: (202) 267–8783. EASA AD on the EASA website at https:// The Order is also available for The following provisions also apply to this ad.easa.europa.eu. AD: (4) You may view this material at the FAA, inspection at the National Archives and (1) Alternative Methods of Compliance Airworthiness Products Section, Operational Records Administration (NARA). For (AMOCs): The Manager, Large Aircraft Safety Branch, 2200 South 216th St., Des information on the availability of FAA Section, International Validation Branch, Moines, WA. For information on the Order 7400.11E at NARA, email FAA, has the authority to approve AMOCs availability of this material at the FAA, call [email protected] or go to https:// for this AD, if requested using the procedures 206–231–3195. This material may be found www.archives.gov/federal-register/cfr/ found in 14 CFR 39.19. In accordance with in the AD docket on the internet at https:// ibr-locations.html. 14 CFR 39.19, send your request to your www.regulations.gov by searching for and principal inspector or responsible Flight locating Docket No. FAA–2021–0184. FOR FURTHER INFORMATION CONTACT: Standards Office, as appropriate. If sending (5) You may view this material that is Matthew Van Der Wal, Federal Aviation information directly to the Large Aircraft incorporated by reference at the National Section, International Validation Branch, Administration, Western Service Center, Archives and Records Administration Operations Support Group, 2200 S send it to the attention of the person (NARA). For information on the availability identified in paragraph (k) of this AD. of this material at NARA, email fedreg.legal@ 216th Street, Des Moines, WA 98198; Information may be emailed to: 9-AVS-AIR- nara.gov, or go to: https://www.archives.gov/ telephone (206) 231–3695. [email protected]. Before using any federal-register/cfr/ibr-locations.html. approved AMOC, notify your appropriate SUPPLEMENTARY INFORMATION: Issued on June 6, 2021. principal inspector, or lacking a principal Authority for This Rulemaking inspector, the manager of the responsible Lance T. Gant, Flight Standards Office. Director, Compliance & Airworthiness The FAA’s authority to issue rules (2) Contacting the Manufacturer: For any Division, Aircraft Certification Service. requirement in this AD to obtain instructions regarding aviation safety is found in [FR Doc. 2021–13781 Filed 6–29–21; 8:45 am] from a manufacturer, the instructions must Title 49 of the United States Code. be accomplished using a method approved BILLING CODE 4910–13–P Subtitle I, Section 106 describes the by the Manager, Large Aircraft Section, authority of the FAA Administrator. International Validation Branch, FAA; or Subtitle VII, Aviation Programs, EASA; or Airbus SAS’s EASA Design DEPARTMENT OF TRANSPORTATION describes in more detail the scope of the Organization Approval (DOA). If approved by agency’s authority. This rulemaking is the DOA, the approval must include the Federal Aviation Administration DOA-authorized signature. promulgated under the authority (3) Required for Compliance (RC): Except 14 CFR Part 71 described in Subtitle VII, Part A, as required by paragraph (j)(2) of this AD, if Subpart I, Section 40103. Under that any service information contains procedures [Docket No. FAA–2021–0209; Airspace section, the FAA is charged with or tests that are identified as RC, those Docket No. 20–ANM–10] prescribing regulations to assign the use procedures and tests must be done to comply RIN 2120–AA66 of airspace necessary to ensure the with this AD; any procedures or tests that are safety of aircraft and the efficient use of not identified as RC are recommended. Those Establishment of Class E Airspace; airspace. This regulation is within the procedures and tests that are not identified Great Falls, MT as RC may be deviated from using accepted scope of that authority as it establishes methods in accordance with the operator’s AGENCY: Federal Aviation Class E airspace at Great Falls, MT, to maintenance or inspection program without Administration (FAA), DOT. ensure the safety and management of obtaining approval of an AMOC, provided IFR operations within the National ACTION: Final rule. the procedures and tests identified as RC can Airspace System.

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History regulatory evaluation as the anticipated Issued in Des Moines, Washington, on June 24, 2021. The FAA published a notice of impact is so minimal. Since this is a proposed rulemaking in the Federal routine matter that will only affect air Register (86 FR 18485; April 9, 2021) for traffic procedures and air navigation, it B.G. Chew, Docket No. FAA–2021–0209 to establish is certified that this rule, when Acting Group Manager, Operations Support Class E airspace at Great Falls, MT. promulgated, would not have a Group, Western Service Center. significant economic impact on a Interested parties were invited to [FR Doc. 2021–13890 Filed 6–29–21; 8:45 am] substantial number of small entities participate in this rulemaking effort by BILLING CODE 4910–13–P submitting written comments on the under the criteria of the Regulatory proposal to the FAA. Two comments Flexibility Act. were received, however, both comments Environmental Review DEPARTMENT OF TRANSPORTATION discussed airspace outside of the area covered by the NPRM and are not The FAA has determined that this Federal Aviation Administration germane to this action. action qualifies for categorical exclusion Class E6 airspace designations are under the National Environmental 14 CFR Part 71 published in paragraph 6006 of FAA Policy Act in accordance with FAA [Docket No. FAA–2021–0210; Airspace Order 7400.11E, dated July 21, 2020, Order 1050.1F, ‘‘Environmental Docket No. 21–ANM–3] and effective September 15, 2020, which Impacts: Policies and Procedures,’’ is incorporated by reference in 14 CFR paragraph 5–6.5a. This airspace action RIN 2120–AA66 71.1. The Class E airspace designation is not expected to cause any potentially Amendment of Class E Airspace; listed in this document will be significant environmental impacts, and Dillon, MT published subsequently in the Order. no extraordinary circumstances exist that warrant the preparation of an Availability and Summary of AGENCY: Federal Aviation environmental assessment. Documents for Incorporation by Administration (FAA), DOT. Reference List of Subjects in 14 CFR Part 71 ACTION: Final rule. This document amends FAA Order Airspace, Incorporation by reference, SUMMARY: This action modifies the Class 7400.11E, Airspace Designations and Navigation (air). E airspace extending upward from 1,200 Reporting Points, dated July 21, 2020, feet above the surface at Dillon Airport, and effective September 15, 2020. FAA Adoption of the Amendment Dillon, MT. The airspace is designed to Order 7400.11E is publicly available as In consideration of the foregoing, the support instrument flight rules (IFR) listed in the ADDRESSES section of this Federal Aviation Administration operations at the airport. document. FAA Order 7400.11E lists amends 14 CFR part 71 as follows: DATES: Effective 0901 UTC, October 7, Class A, B, C, D, and E airspace areas, 2021. The Director of the Federal air traffic service routes, and reporting PART 71—DESIGNATION OF CLASS A, Register approves this incorporation by points. B, C, D, AND E AIRSPACE AREAS; AIR reference action under 1 CFR part 51, The Rule TRAFFIC SERVICE ROUTES; AND subject to the annual revision of FAA REPORTING POINTS Order 7400.11 and publication of This amendment to 14 CFR part 71 conforming amendments. establishes Class E en route domestic ■ 1. The authority citation for 14 CFR ADDRESSES: FAA Order 7400.11E, airspace extending upward from 1,200 part 71 continues to read as follows: feet above the surface at Great Falls, MT. Airspace Designations and Reporting This action provides controlled airspace Authority: 49 U.S.C. 106(f), 106(g), 40103, Points, and subsequent amendments can 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, be viewed online at https:// to facilitate vectoring of IFR aircraft _ under the control of Salt Lake City 1959–1963 Comp., p. 389. www.faa.gov//air traffic/publications/. For further information, you can contact ARTCC. The airspace would also ensure § 71.1 [Amended] proper containment of IFR aircraft the Airspace Policy Group, Federal operating on direct routes where the ■ 2. The incorporation by reference in Aviation Administration, 800 current en route structure is insufficient. 14 CFR 71.1 of FAA Order 7400.11E, Independence Avenue SW, Washington, FAA Order 7400.11, Airspace Airspace Designations and Reporting DC 20591; telephone: (202) 267–8783. Designations and Reporting Points, is Points, dated July 21, 2020, and The Order is also available for published yearly and effective on effective September 15, 2020, is inspection at the National Archives and September 15. amended as follows: Records Administration (NARA). For information on the availability of FAA Regulatory Notices and Analyses Paragraph 6006 En Route Domestic Airspace Areas. Order 7400.11E at NARA, email The FAA has determined that this [email protected] or go to https:// * * * * * regulation only involves an established www.archives.gov/federal-register/cfr/ body of technical regulations for which ANM MT E6 Great Falls, MT ibr-locations.html. frequent and routine amendments are That airspace extending upward from FOR FURTHER INFORMATION CONTACT: necessary to keep them operationally 1,200 feet above the surface within an area Matthew Van Der Wal, Federal Aviation current, is non-controversial, and beginning at lat 46°23′22″ N, long 110°30′0.0″ Administration, Western Service Center, unlikely to result in adverse or negative W, to lat 46°01′40.93″ N, long 112°32′45.82″ Operations Support Group, 2200 S W, to lat 47°40′32.29″ N, long 112°32′46.33″ comments. It, therefore: (1) Is not a ° ′ ″ ° ′ ″ 216th Street, Des Moines, WA 98198; ‘‘significant regulatory action’’ under W, to lat 47 41 18 N, long 112 36 32 W, to telephone (206) 231–3695. lat 48°03′50″ N, long 112°14′45″ W, to lat Executive Order 12866; (2) is not a 48°15′45″ N, long 111°33′50″ W, to lat SUPPLEMENTARY INFORMATION: ‘‘significant rule’’ under DOT ° ′ ″ ° ′ ″ 48 12 20 N, long 111 0.0 10 W, to lat Authority for This Rulemaking Regulatory Policies and Procedures (44 47°59′55″ N, long 110°30′0.0″ W, to lat FR 11034; February 26, 1979); and (3) 47°10′40″ N, long 109°52′06″ W, then to the The FAA’s authority to issue rules does not warrant preparation of a point of beginning. regarding aviation safety is found in

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Title 49 of the United States Code. FAA Order 7400.11, Airspace Points, dated July 21, 2020, and Subtitle I, Section 106 describes the Designations and Reporting Points, is effective September 15, 2020, is authority of the FAA Administrator. published yearly and effective on amended as follows: Subtitle VII, Aviation Programs, September 15. Paragraph 6005 Class E Airspace Areas describes in more detail the scope of the Regulatory Notices and Analyses Extending Upward From 700 Feet or More agency’s authority. This rulemaking is Above the Surface of the Earth. The FAA has determined that this promulgated under the authority * * * * * described in Subtitle VII, Part A, regulation only involves an established Subpart I, Section 40103. Under that body of technical regulations for which ANM MT E5 Dillon, MT [Amended] section, the FAA is charged with frequent and routine amendments are Dillon Airport, MT prescribing regulations to assign the use necessary to keep them operationally (Lat. 45°15′19″ N, long. 112°33′09″ W) of airspace necessary to ensure the current, is non-controversial, and That airspace extending upward from 700 safety of aircraft and the efficient use of unlikely to result in adverse or negative feet above the surface within a 5.2-mile comments. It, therefore: (1) Is not a radius of the airport, and within 3 miles each airspace. This regulation is within the ° ‘‘significant regulatory action’’ under side of the 205 bearing from the airport, scope of that authority as it modifies the extending from the 5.2-mile radius to 9.9 Class E airspace at Dillon Airport, Executive Order 12866; (2) is not a miles southwest of the airport, and that Dillon, MT, to ensure the safety and ‘‘significant rule’’ under DOT airspace within 8 miles west and 4 miles east management of IFR operations at the Regulatory Policies and Procedures (44 of the 005° bearing from the airport, airport. FR 11034; February 26, 1979); and (3) extending from the 5.2-mile radius to 16 does not warrant preparation of a miles north of the airport; and that airspace History regulatory evaluation as the anticipated extending upward from 1,200 feet above the The FAA published a notice of impact is so minimal. Since this is a surface within a 50-mile radius of Dillon Airport. proposed rulemaking in the Federal routine matter that will only affect air Register (86 FR 18484; April 9, 2021) for traffic procedures and air navigation, it Issued in Des Moines, Washington, on June Docket No. FAA–2021–0210 to modify is certified that this rule, when 24, 2021. the Class E airspace at Dillon Airport, promulgated, would not have a B.G. Chew, Dillon, MT. Interested parties were significant economic impact on a Acting Group Manager, Operations Support invited to participate in this rulemaking substantial number of small entities Group, Western Service Center. effort by submitting written comments under the criteria of the Regulatory [FR Doc. 2021–13895 Filed 6–29–21; 8:45 am] on the proposal to the FAA. One Flexibility Act. BILLING CODE 4910–13–P comment, in favor of the airspace Environmental Review modification, was received. Class E5 airspace designations are The FAA has determined that this FEDERAL COMMUNICATIONS published in paragraph 6005 of FAA action qualifies for categorical exclusion COMMISSION Order 7400.11E, dated July 21, 2020, under the National Environmental and effective September 15, 2020, which Policy Act in accordance with FAA 47 CFR Part 73 Order 1050.1F, ‘‘Environmental is incorporated by reference in 14 CFR [MB Docket Nos. 14–50, 09–182, 07–294, 04– 71.1. The Class E airspace designation Impacts: Policies and Procedures,’’ 256, 17–289; DA 21–656; FR ID 33718] listed in this document will be paragraph 5–6.5a. This airspace action published subsequently in the Order. is not expected to cause any potentially Media Bureau Reinstates significant environmental impacts, and Commission’s Prior Rule Changes Availability and Summary of no extraordinary circumstances exist Regarding Media Ownership Documents for Incorporation by that warrant the preparation of an Consistent With the U.S. Supreme Reference environmental assessment. Court’s Decision This document amends FAA Order List of Subjects in 14 CFR Part 71 AGENCY: Federal Communications 7400.11E, Airspace Designations and Airspace, Incorporation by reference, Commission. Reporting Points, dated July 21, 2020, Navigation (air). ACTION: Final rule. and effective September 15, 2020. FAA Order 7400.11E is publicly available as Adoption of the Amendment SUMMARY: In this document, consistent listed in the ADDRESSES section of this In consideration of the foregoing, the with the U.S. Supreme Court’s decision document. FAA Order 7400.11E lists Federal Aviation Administration in FCC v. Prometheus Radio Project, the Class A, B, C, D, and E airspace areas, amends 14 CFR part 71 as follows: Media Bureau of the Federal air traffic service routes, and reporting Communications Commission reinstates points. PART 71—DESIGNATION OF CLASS A, the rule changes that were previously adopted by the Commission in its media The Rule B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND ownership proceedings but then vacated This amendment to 14 CFR part 71 REPORTING POINTS and remanded by the U.S. Third Circuit modifies the Class E airspace, extending Court of Appeals in 2019. As such, the upward from 1,200 feet above the ■ 1. The authority citation for 14 CFR Newspaper/Broadcast Cross-Ownership surface, at Dillon Airport, Dillon, MT. part 71 continues to read as follows: Rule, the Radio/Television Cross- This airspace is designed to contain IFR Authority: 49 U.S.C. 106(f), 106(g), 40103, Ownership Rule, and the Television aircraft transitioning to/from the 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, Joint Sales Agreement Attribution Rule terminal and en route environments. 1959–1963 Comp., p. 389. are eliminated, and the Local Television This action increases the airspace’s Ownership Rule and Local Radio radius from ‘‘25 miles’’ to ‘‘50 miles’’ § 71.1 [Amended] Ownership Rule are reinstated as around the airport. The 50-mile radius ■ 2. The incorporation by reference in adopted in the Commission’s 2017 will properly contain IFR aircraft 14 CFR 71.1 of FAA Order 7400.11E, Order on Reconsideration. In addition, transitioning to/from the airport. Airspace Designations and Reporting the eligible entity standard and its

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application to regulatory measures as set adopted in the Order on 7. The Bureau has determined, and forth in the Commission’s 2016 Second Reconsideration. The presumption the Administrator of the Office of Report and Order are reinstated. Finally, under the Local Radio Ownership Rule Information and Regulatory Affairs, the regulatory measures adopted in the that would apply a two-prong test for Office of Management and Budget, Commission’s 2018 Incubator Order are waiver requests involving existing concurs that these rules are non-major reinstated. parent markets with multiple embedded under the Congressional Review Act, 5 DATES: Effective June 30, 2021. markets is reinstated. Note 5 to U.S.C. 804(2). The Commission will FOR FURTHER INFORMATION CONTACT: Ty § 73.3555 is reinstated to the version as send a copy of this Order to Congress Bream, Industry Analysis Division, amended when the Commission and the Government Accountability Media Bureau, [email protected], (202) adopted the streamlined procedures in Office pursuant to 5 U.S.C. 801(a)(1)(A). 418–0644. March 2019 for reauthorizing television satellite stations when such stations are List of Subjects in 47 CFR Part 73 SUPPLEMENTARY INFORMATION: This is a assigned or transferred. See Streamlined Radio, Television. summary of the Commission’s Order in Reauthorization Procedures for Federal Communications Commission. MB Docket Nos. 14–50, 09–182, 07–294, Assigned or Transferred Television Thomas Horan, 04–256, and 17–289, DA 21–656, that Satellite Stations, Modernization of was adopted and released on June 4, Media Regulation Initiative (84 FR Chief of Staff, Media Bureau. 2021. The full text of this document is 15125, Apr. 15, 2019). The Order on Final Rules available for public inspection online at Reconsideration revised § 73.3613(d)(2) For the reasons discussed in the https://docs.fcc.gov/public/ of the Commission’s rules regarding the preamble, the Federal Communications attachments/DA-21-656A1.pdf. filing requirement for joint sales Commission amends 47 CFR part 73 as Documents will be available agreements. Because that filing follows: electronically in ASCII, Microsoft Word, requirement has since been eliminated, and/or Adobe Acrobat. Alternative the revision to § 73.3613(d)(2) adopted formats are available for people with PART 73—RADIO BROADCAST in the Order on Reconsideration is not SERVICES disabilities (Braille, large print, reinstated. See Amendment of Section electronic files, audio format, etc.) and 73.3613 of the Commission’s Rules ■ 1. The authority citation for part 73 reasonable accommodations (accessible Regarding Filing of Contracts, continues to read as follows: format documents, sign language Modernization of Media Regulation interpreters, CART, etc.) may be Authority: 47 U.S.C. 154, 155, 301, 303, Initiative (83 FR 65551, Dec. 21, 2018). 307, 309, 310, 334, 336, 339. requested by sending an email to 3. In addition, the eligible entity [email protected] or calling the FCC’s standard and its application to ■ 2. Amend § 73.3555 by: Consumer and Governmental Affairs regulatory measures as set forth in the ■ a. Revising paragraph (b); Bureau at (202) 418–0530 (voice), (202) Second Report and Order are reinstated. ■ b. Removing and reserving paragraphs 418–0432 (TTY). Finally, the regulatory measures (c) and (d); ■ c. In Note 2, revising the introductory Synopsis adopted in the Incubator Order are reinstated. text and paragraphs (a) through (d) and 1. In FCC v. Prometheus Radio 4. The Bureau finds that notice and (g) through (k); Project, 141 S.Ct. 1150 (2021), the U.S. comment are unnecessary for these rule ■ d. Revising Note 4 through Note 7 and Supreme Court reversed the decision of amendments under 5 U.S.C. 553(b) Note 9; and the U.S. Court of Appeals for the Third because this ministerial order merely ■ e. Removing Note 12. Circuit in Prometheus Radio Project v. implements the decision of the U.S. The revisions read as follows: FCC, 939 F.3d 567 (3rd Cir. 2019), Supreme Court. Because this Order is regarding the Commission’s media being adopted without notice and § 73.3555 Multiple ownership. ownership rules. The Third Circuit had comment, the Regulatory Flexibility * * * * * vacated and remanded, in their entirety, Act, 5 U.S.C. 601, et seq., does not (b) Local television multiple the Commission’s 2018 Incubator Order apply. ownership rule. (1) An entity may (83 FR 43773, Aug. 28, 2018) and the 5. Accordingly, it is ordered that directly or indirectly own, operate, or Commission’s 2017 Order on § 73.3555 of the Commission’s rules, 47 control two television stations licensed Reconsideration (83 FR 755, Jan. 8, CFR 73.3555, is amended as set forth in in the same Designated Market Area 2018). The Third Circuit also had the Final Rules, effective upon (DMA) (as determined by Nielsen Media vacated and remanded the definition of publication in the Federal Register. Research or any successor entity) if: eligible entities adopted in the Because of the need during the current (i) The digital noise limited service Commission’s 2016 Second Report and broadcast station license renewal cycle contours of the stations (computed in Order (81 FR 76262, Nov. 1, 2016). to alert prospective applicants to the accordance with § 73.622(e)) do not 2. Consistent with the Supreme current, applicable rules, there is ‘‘good overlap; or Court’s decision, the Media Bureau’s cause’’ under 5 U.S.C. 553(d) to make (ii) At the time the application to Order reinstates the changes adopted in the rules effective immediately upon acquire or construct the station(s) is the Incubator Order and Order on publication in the Federal Register. filed, at least one of the stations is not Reconsideration and the eligible entity 6. This action is taken pursuant to the ranked among the top four stations in definition as adopted in the Second authority contained in sections 1, 2(a), the DMA, based on the most recent all- Report and Order. As such, the 4(i) and (j), 5(c), 257, 303, 307, 308, 309, day (9 a.m.–midnight) audience share, Newspaper/Broadcast Cross-Ownership 310, and 403 of the Communications as measured by Nielsen Media Research Rule, the Radio/Television Cross- Act of 1934, as amended, 47 U.S.C. 151, or by any comparable professional, Ownership Rule, and the Television 152(a), 154(i), 154(j), 155(c), 257, 303, accepted audience ratings service. Joint Sales Agreement Attribution Rule 307, 308, 309, 310, and 403, section (2) Paragraph (b)(1)(ii) (Top-Four are eliminated, and the Local Television 202(h) of the Telecommunications Act Prohibition) of this section shall not Ownership Rule and Local Radio of 1996, and §§ 0.61 and 0.283 of the apply in cases where, at the request of Ownership Rule are reinstated as Commission’s rules, 47 CFR 0.61, 0.283. the applicant, the Commission makes a

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finding that permitting an entity to included for purposes of this h. Discrete ownership interests will be directly or indirectly own, operate, or multiplication. [For example, except for aggregated in determining whether or control two television stations licensed purposes of paragraph (i) of this note, if not an interest is cognizable under this in the same DMA would serve the A owns 10% of company X, which section. An individual or entity will be public interest, convenience, and owns 60% of company Y, which owns deemed to have a cognizable investment necessity. The Commission will 25% of ‘‘Licensee,’’ then X’s interest in if: consider showings that the Top-Four ‘‘Licensee’’ would be 25% (the same as 1. The sum of the interests held by or Prohibition should not apply due to Y’s interest because X’s interest in Y through ‘‘passive investors’’ is equal to specific circumstances in a local market exceeds 50%), and A’s interest in or exceeds 20 percent; or or with respect to a specific transaction ‘‘Licensee’’ would be 2.5% (0.1 × 0.25). 2. The sum of the interests other than on a case-by-case basis. Under the 5% attribution benchmark, those held by or through ‘‘passive * * * * * X’s interest in ‘‘Licensee’’ would be investors’’ is equal to or exceeds 5 cognizable, while A’s interest would not percent; or Note 2 to § 73.3555: In applying the be cognizable. For purposes of 3. The sum of the interests computed provisions of this section, ownership and under paragraph h. 1. of this note plus other interests in broadcast licensees will be paragraph i. of this note, X’s interest in attributed to their holders and deemed ‘‘Licensee’’ would be 15% (0.6 × 0.25) the sum of the interests computed under cognizable pursuant to the following criteria: and A’s interest in ‘‘Licensee’’ would be paragraph h. 2. of this note is equal to × × or exceeds 20 percent. a. Except as otherwise provided 1.5% (0.1 0.6 0.25). Neither interest would be attributed under paragraph i. i.1. Notwithstanding paragraphs e. herein, partnership and direct and f. of this Note, the holder of an ownership interests and any voting of this note.] d. Voting stock interests held in trust equity or debt interest or interests in a stock interest amounting to 5% or more broadcast licensee subject to the of the outstanding voting stock of a shall be attributed to any person who holds or shares the power to vote such broadcast multiple ownership rules corporate broadcast licensee will be (‘‘interest holder’’) shall have that cognizable; stock, to any person who has the sole power to sell such stock, and to any interest attributed if: b. Investment companies, as defined A. The equity (including all in 15 U.S.C. 80a–3, insurance person who has the right to revoke the trust at will or to replace the trustee at stockholdings, whether voting or companies and banks holding stock nonvoting, common or preferred) and through their trust departments in trust will. If the trustee has a familial, personal or extra-trust business debt interest or interests, in the accounts will be considered to have a aggregate, exceed 33 percent of the total cognizable interest only if they hold relationship to the grantor or the beneficiary, the grantor or beneficiary, asset value, defined as the aggregate of 20% or more of the outstanding voting all equity plus all debt, of that broadcast stock of a corporate broadcast licensee, as appropriate, will be attributed with the stock interests held in trust. An licensee; and or if any of the officers or directors of B.(i) The interest holder also holds an otherwise qualified trust will be the broadcast licensee are interest in a broadcast licensee in the ineffective to insulate the grantor or representatives of the investment same market that is subject to the beneficiary from attribution with the company, insurance company or bank broadcast multiple ownership rules and trust’s assets unless all voting stock concerned. Holdings by a bank or is attributable under paragraphs of this interests held by the grantor or insurance company will be aggregated if note other than this paragraph i.; or the bank or insurance company has any beneficiary in the relevant broadcast (ii) The interest holder supplies over right to determine how the stock will be licensee are subject to said trust. fifteen percent of the total weekly voted. Holdings by investment * * * * * broadcast programming hours of the companies will be aggregated if under g. Officers and directors of a broadcast station in which the interest is held. For common management. licensee are considered to have a purposes of applying this paragraph, the c. Attribution of ownership interests cognizable interest in the entity with term, ‘‘market,’’ will be defined as it is in a broadcast licensee that are held which they are so associated. If any defined under the specific multiple indirectly by any party through one or such entity engages in businesses in ownership rule that is being applied, more intervening corporations will be addition to its primary business of except that for television stations, the determined by successive multiplication broadcasting, it may request the term ‘‘market’’ will be defined by of the ownership percentages for each Commission to waive attribution for any reference to the definition contained in link in the vertical ownership chain and officer or director whose duties and the local television multiple ownership application of the relevant attribution responsibilities are wholly unrelated to rule contained in paragraph (b) of this benchmark to the resulting product, its primary business. The officers and section. except that wherever the ownership directors of a parent company of a 2. Notwithstanding paragraph i.1. of percentage for any link in the chain broadcast licensee, with an attributable this Note, the interest holder may exceeds 50%, it shall not be included interest in any such subsidiary entity, exceed the 33 percent threshold therein for purposes of this multiplication. For shall be deemed to have a cognizable without triggering attribution where purposes of paragraph i. of this note, interest in the subsidiary unless the holding such interest would enable an attribution of ownership interests in a duties and responsibilities of the officer eligible entity to acquire a broadcast broadcast licensee that are held or director involved are wholly station, provided that: indirectly by any party through one or unrelated to the broadcast licensee, and i. The combined equity and debt of more intervening organizations will be a statement properly documenting this the interest holder in the eligible entity determined by successive multiplication fact is submitted to the Commission. is less than 50 percent, or of the ownership percentages for each [This statement may be included on the ii. The total debt of the interest holder link in the vertical ownership chain and appropriate Ownership Report.] The in the eligible entity does not exceed 80 application of the relevant attribution officers and directors of a sister percent of the asset value of the station benchmark to the resulting product, and corporation of a broadcast licensee shall being acquired by the eligible entity and the ownership percentage for any link in not be attributed with ownership of that the interest holder does not hold any the chain that exceeds 50% shall be licensee by virtue of such status. equity interest, option, or promise to

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acquire an equity interest in the eligible undertaken only pursuant to a signed new or increased concentration of ownership entity or any related entity. For written agreement that shall contain a among commonly owned, operated or purposes of this paragraph i.2, an certification by the licensee or permittee controlled broadcast stations. Commonly ‘‘eligible entity’’ shall include any entity of the brokered station verifying that it owned, operated or controlled broadcast that qualifies as a small business under stations that do not comply with paragraphs maintains ultimate control over the (a) and (b) of this section may not be assigned the Small Business Administration’s station’s facilities including, or transferred to a single person, group or size standards for its industry grouping, specifically, control over station entity, except as provided in this Note, the as set forth in 13 CFR 121.201, at the finances, personnel and programming, Report and Order in Docket No. 02–277, time the transaction is approved by the and by the brokering station that the released July 2, 2003 (FCC 02–127), or the FCC, and holds: agreement complies with the provisions Second Report and Order in MB Docket No. A. 30 percent or more of the stock or of paragraph (b) of this section if the 14–50, FCC 16–107 (released August 25, partnership interests and more than 50 brokering station is a television station 2016). percent of the voting power of the or with paragraph (a) of this section if corporation or partnership that will own Note 5 to § 73.3555: Paragraphs (b) and (e) the brokering station is a radio station. of this section will not be applied to cases the media outlet; or k. ‘‘Joint Sales Agreement’’ is an involving television stations that are B. 15 percent or more of the stock or agreement with a licensee of a ‘‘satellite’’ operations. Such cases will be partnership interests and more than 50 ‘‘brokered station’’ that authorizes a considered in accordance with the analysis percent of the voting power of the ‘‘broker’’ to sell advertising time for the set forth in the Report and Order in MM corporation or partnership that will own ‘‘brokered station.’’ Docket No. 87–8, FCC 91–182 (released July the media outlet, provided that no other 1. Where two radio stations are both 8, 1991), as further explained by the Report person or entity owns or controls more located in the same market, as defined and Order in MB Docket No. 18–63, FCC 19– than 25 percent of the outstanding stock for purposes of the local radio 17, (released March 12, 2019), in order to determine whether common ownership, or partnership interests; or ownership rule contained in paragraph C. More than 50 percent of the voting operation, or control of the stations in (a) of this section, and a party (including question would be in the public interest. An power of the corporation that will own all parties under common control) with the media outlet if such corporation is authorized and operating ‘‘satellite’’ a cognizable interest in one such station television station, the digital noise limited a publicly traded company. sells more than 15 percent of the service contour of which overlaps that of a j. ‘‘Time brokerage’’ (also known as advertising time per week of the other commonly owned, operated, or controlled ‘‘local marketing’’) is the sale by a such station, that party shall be treated ‘‘non-satellite’’ parent television broadcast licensee of discrete blocks of time to a as if it has an interest in the brokered station may subsequently become a ‘‘non- ‘‘broker’’ that supplies the programming station subject to the limitations set satellite’’ station under the circumstances to fill that time and sells the commercial described in the aforementioned Report and forth in paragraph (a) of this section. spot announcements in it. Order in MM Docket No. 87–8. However, 2. Every joint sales agreement of the 1. Where two radio stations are both such commonly owned, operated, or type described in this Note shall be located in the same market, as defined controlled ‘‘non-satellite’’ television stations undertaken only pursuant to a signed for purposes of the local radio may not be transferred or assigned to a single written agreement that shall contain a person, group, or entity except as provided ownership rule contained in paragraph certification by the licensee or permittee in Note 4 of this section. (a) of this section, and a party (including of the brokered station verifying that it all parties under common control) with maintains ultimate control over the Note 6 to § 73.3555: Requests submitted a cognizable interest in one such station pursuant to paragraph (b)(2) of this section station’s facilities, including, brokers more than 15 percent of the will be considered in accordance with the specifically, control over station broadcast time per week of the other analysis set forth in the Order on finances, personnel and programming, such station, that party shall be treated Reconsideration in MB Docket Nos. 14–50, et and by the brokering station that the as if it has an interest in the brokered al. (FCC 17–156). agreement complies with the limitations station subject to the limitations set set forth in paragraph (a) of this section Note 7 to § 73.3555: The Commission will forth in paragraph (a) of this section. if the brokering station is a radio station. entertain applications to waive the This limitation shall apply regardless of restrictions in paragraph (b) of this section the source of the brokered programming * * * * * (the local television ownership rule) on a supplied by the party to the brokered Note 4 to § 73.3555: Paragraphs (a) and (b) case-by-case basis. In each case, we will station. of this section will not be applied so as to require a showing that the in-market buyer is 2. Where two television stations are require divestiture, by any licensee, of the only entity ready, willing, and able to both located in the same market, as existing facilities, and will not apply to operate the station, that sale to an out-of- defined in the local television applications for assignment of license or market applicant would result in an artificially depressed price, and that the ownership rule contained in paragraph transfer of control filed in accordance with § 73.3540(f) or § 73.3541(b), or to applications waiver applicant does not already directly or (b) of this section, and a party for assignment of license or transfer of indirectly own, operate, or control interest in (including all parties under common control to heirs or legatees by will or two television stations within the relevant control) with a cognizable interest in intestacy, or to FM or AM broadcast minor DMA. One way to satisfy these criteria would one such station brokers more than 15 modification applications for intra-market be to provide an affidavit from an percent of the broadcast time per week community of license changes, if no new or independent broker affirming that active and of the other such station, that party shall increased concentration of ownership would serious efforts have been made to sell the be treated as if it has an interest in the be created among commonly owned, permit, and that no reasonable offer from an brokered station subject to the operated or controlled broadcast stations. entity outside the market has been received. limitations set forth in paragraphs (b) Paragraphs (a) and (b) of this section will We will entertain waiver requests as apply to all applications for new stations, to follows: and (e) of this section. This limitation all other applications for assignment or shall apply regardless of the source of transfer, to all applications for major changes 1. If one of the broadcast stations the brokered programming supplied by to existing stations, and to all other involved is a ‘‘failed’’ station that has the party to the brokered station. applications for minor changes to existing not been in operation due to financial 3. Every time brokerage agreement of stations that seek a change in an FM or AM distress for at least four consecutive the type described in this Note shall be radio station’s community of license or create months immediately prior to the

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application, or is a debtor in an (IT) systems and procedures, as (202) 366–9826 before visiting Dockets involuntary bankruptcy or insolvency necessary, to accommodate their receipt Operations. proceeding at the time of the of driver-specific ELDT data from the B. Privacy Act application. TPR. 2. If one of the television stations In accordance with 5 U.S.C. 553(c), DATES: This final rule is effective on July DOT solicits comments from the public involved is a ‘‘failing’’ station that has 30, 2021. an all-day audience share of no more to better inform its rulemaking process. Petitions for Reconsideration of this DOT posts these comments, without than four per cent; the station has had final rule must be submitted to the negative cash flow for three consecutive edit, including any personal information FMCSA Administrator no later than July the commenter provides, to https:// years immediately prior to the 30, 2021. application; and consolidation of the www.regulations.gov, as described in FOR FURTHER INFORMATION CONTACT: two stations would result in tangible Mr. the system of records notice ‘‘DOT/ALL and verifiable public interest benefits Joshua Jones, Commercial Driver’s 14—Federal Docket Management that outweigh any harm to competition License Division, FMCSA, 1200 New System (FDMS),’’ which can be and diversity. Jersey Avenue SE, Washington, DC reviewed at https:// 3. If the combination will result in the 20590–0001, (202) 366–7332, www.transportation.gov/privacy. [email protected]. If you have construction of an unbuilt station. The II. Executive Summary permittee of the unbuilt station must questions on viewing or submitting demonstrate that it has made reasonable material to the docket, contact Dockets A. Purpose of the Regulatory Action efforts to construct but has been unable Operations, (202) 366–9826. FMCSA finalizes the extension of the to do so. SUPPLEMENTARY INFORMATION: This final compliance date for the ELDT final rule, * * * * * rule is organized as follows: ‘‘Minimum Training Requirements for Entry-Level Commercial Motor Vehicle Note 9 to § 73.3555: Paragraph (a)(1) of this I. Rulemaking Documents section will not apply to an application for A. Availability of Rulemaking Documents Operators’’ (81 FR 88732, Dec. 8, 2016), an AM station license in the 1605–1705 kHz B. Privacy Act from February 7, 2020, to February 7, band where grant of such application will II. Executive Summary 2022. As noted in the interim final rule, result in the overlap of the 5 mV/m A. Purpose of the Regulatory Action this extension is necessary so that groundwave contours of the proposed station B. Summary of Major Provisions FMCSA can complete the IT and that of another AM station in the 535– C. Costs and Benefits infrastructure to support the TPR, which III. Abbreviations, Acronyms, and Symbols 1605 kHz band that is commonly owned, will allow training providers to self- operated or controlled. IV. Legal Basis V. Regulatory History certify, to request listing on the TPR, * * * * * A. 2016 ELDT Final Rule and to upload the driver-specific ELDT [FR Doc. 2021–13811 Filed 6–29–21; 8:45 am] B. NPRM To Extend Partially the ELDT completion information to the TPR. Compliance Date BILLING CODE 6712–01–P Completion of the TPR technology C. Interim Final Rule platform is also necessary before driver- VI. Discussion of Comments and Changes to specific ELDT completion information the Interim Final Rule can be transmitted from the TPR to the DEPARTMENT OF TRANSPORTATION VII. Section-by-Section Analysis SDLAs. This delay also provides SDLAs VIII. Regulatory Analyses Federal Motor Carrier Safety A. Executive Order (E.O.) 12866 with time to make changes, as Administration (Regulatory Planning and Review), E.O. necessary, to their IT systems and 13563 (Improving Regulation and internal procedures to allow them to 49 CFR Parts 380, 383, and 384 Regulatory Review), and DOT Regulatory receive the driver ELDT completion Policies and Procedures information transmitted from the TPR. [Docket No. FMCSA–2007–27748] B. Congressional Review Act B. Summary of Major Provisions RIN 2126–AC25 C. Regulatory Flexibility Act D. Assistance for Small Entities This action finalizes the 2-year Extension of Compliance Date for E. Unfunded Mandates Reform Act of 1995 extension of the interim final rule. The Entry-Level Driver Training F. Paperwork Reduction Act extension applies to all requirements G. E.O. 13132 (Federalism) established by the ELDT final rule, AGENCY: Federal Motor Carrier Safety H. Privacy I. E.O. 13175 (Indian Tribal Governments) including: Administration (FMCSA), Department 1. The date by which training of Transportation (DOT). J. National Environmental Policy Act of 1969 providers must begin uploading driver- ACTION: Final rule. specific ELDT certification information I. Rulemaking Documents to the TPR; SUMMARY: FMCSA finalizes its February 2. The date by which SDLAs must 4, 2020 interim final rule (interim rule), A. Availability of Rulemaking Documents confirm that applicants for a which revised a December 8, 2016, final commercial driver’s license (CDL) have rule, ‘‘Minimum Training Requirements For access to docket FMCSA–2007– complied with ELDT requirements prior for Entry-Level Commercial Motor 27748 to read background documents to taking a specified knowledge or skills Vehicle Operators’’ (ELDT final rule). and comments received, go to https:// test; This action finalizes the extension of the www.regulations.gov at any time, or to 3. The date by which training compliance date for the ELDT final rule Dockets Operations at U.S. Department providers wishing to provide ELDT from February 7, 2020, to February 7, of Transportation, Room W12–140, West must be listed on the TPR; and 2022. This action provides FMCSA Building Ground Floor, 1200 New Jersey 4. The date by which drivers seeking additional time to complete Avenue SE, Washington, DC 20590– a CDL or endorsement must complete development of the Training Provider 0001, between 9 a.m. and 5 p.m., the required training, as set forth in the Registry (TPR) and provides State Driver Monday through Friday, except Federal ELDT final rule. Licensing Agencies (SDLAs) time to holidays. To be sure someone is there to In addition to finalizing this delay, modify their information technology help you, please call (202) 366–9317 or FMCSA is also making clarifying and

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conforming changes to the regulations. FMCSA’s authority to amend the that SDLAs verify ELDT completion FMCSA does not make any other ELDT final rule by extending the before allowing the applicant to take a substantive changes to the requirements compliance date, and making other skills test for a Class A or Class B CDL, established by the ELDT final rule, or to necessary clarifying and conforming or a P or S endorsement; or a knowledge the length of the delay established in the changes, is derived from several test prior to obtaining the H interim final rule. concurrent statutory sources. The Motor endorsement. Carrier Act of 1935, as amended, The ELDT final rule also established C. Costs and Benefits codified at 49 U.S.C. 31502(b), the TPR, an online database which In the interim rule, the Agency authorizes the Secretary of would allow ELDT providers to estimated annualized cost savings of Transportation (the Secretary) to electronically register with FMCSA and $179 million and $196 million at 3 prescribe requirements for the safety of certify that individual driver-trainees percent and 7 percent discount rates, motor carrier operations. The rule also completed the required training. The respectively, over a 4-year period from relies on the Motor Carrier Safety Act of rule set forth eligibility requirements for 2020 through 2023. The full regulatory 1984, as amended, codified at 49 U.S.C. training providers to be listed on the analyses may be found in the interim 31136(a)(1) and (2), requiring the TPR, including a certification, under rule located in the public docket for this Secretary to establish regulations to penalty of perjury, that their training rulemaking (FMCSA–2007–27748– ensure that CMVs are operated safely, programs meet those requirements. The 1474). Because the interim rule was and that responsibilities placed on CMV ELDT final rule, when fully effective upon publication, the Agency drivers do not impair their ability to implemented, will require training treats the interim rule as the baseline for safely operate CMVs. The rule does not providers to register with the TPR, and this analysis. Therefore, this final rule address medical standards for drivers or thereafter electronically upload driver- will not result in any incremental physical effects related to CMV driving specific ELDT information to the TPR, impacts relative to that baseline, as it (49 U.S.C. 31136(a)(3) and (4)). The which FMCSA will then verify before merely finalizes the 2-year extension of Agency does not anticipate that drivers transmitting to the SDLA. The process is the interim rule. will be coerced as a result of this rule designed to deliver a finished ‘‘product’’ (49 U.S.C. 31136(5)). The Commercial (i.e., verified driver-specific ELDT III. Abbreviations, Acronyms, and information) to the end user, the SDLA, Symbols Motor Vehicle Safety Act of 1986 (CMVSA), as amended, codified in 49 for their review prior to administering AAMVA American Association of Motor U.S.C. chapter 313, established the CDL the CDL skills test or issuing the CDL Vehicle Administrators program and required the Secretary to credential. ANPRM Advance Notice of Proposed promulgate implementing regulations, Rulemaking B. NPRM To Extend Partially the ELDT BTW Behind the Wheel including minimum standards for Compliance Date CDL Commercial Driver’s License testing and ensuring the fitness of an On July 18, 2019, FMCSA published CDLIS Commercial Driver’s License individual operating a commercial a notice of proposed rulemaking Information System motor vehicle (49 U.S.C. 31305(a)). The (NPRM) titled ‘‘Partial Extension of CFR Code of Federal Regulations specific statutory provision underlying Compliance Date for Entry-Level Driver CMV Commercial Motor Vehicle the ELDT final rule, enacted as part of Training’’ (84 FR 34324). That NPRM CMVSA Commercial Motor Vehicle Safety The Moving Ahead for Progress in the Act proposed delaying, from February 7, 21st Century Act and codified at 49 2020, to February 7, 2022, two DOT U.S. Department of Transportation U.S.C. 31305(c), required the Secretary ELDT Entry-Level Driver Training provisions from the ELDT final rule E.O. Executive Order to establish minimum entry-level driver published on December 8, 2016 (81 FR FMCSA Federal Motor Carrier Safety training standards for certain 88732): The requirement that training Administration individuals required to hold a CDL. providers upload driver-specific The Administrator of FMCSA is FMCSRs Federal Motor Carrier Safety training certification information to the delegated authority under 49 CFR 1.87 Regulations TPR, and the requirement that SDLAs FR Federal Register to carry out the functions vested in the confirm driver applicants are in FRFA Final Regulatory Flexibility Analysis Secretary by 49 U.S.C. chapters 311, compliance with the ELDT requirements IT Information Technology 313, and 315, as they relate to CMV prior to administering a skills test for a NEPA National Environmental Policy Act operators, programs, and safety. of 1969 Class A or Class B CDL, or a P or S NPRM Notice of Proposed Rulemaking V. Regulatory History endorsement, or prior to administering OMB Office of Management and Budget the knowledge test to obtain the H A. 2016 ELDT Final Rule PIA Privacy Impact Assessment endorsement. In the NPRM, FMCSA PII Personally Identifiable Information The ELDT final rule established explained that the proposed delay was PRA Paperwork Reduction Act minimum training standards for necessary to allow both the Agency and RIA Regulatory Impact Analysis individuals applying for a Class A or SDLAs to complete the requisite IT RIN Regulation Identifier Number Class B CDL for the first time; SDLA State Driver Licensing Agency infrastructure to accommodate the two SORN Systems of Records Notice individuals upgrading their CDL to a requirements. The NPRM, which did § Section symbol Class B or Class A; and individuals not propose extending the compliance TPR Training Provider Registry obtaining the following endorsements date for any other ELDT requirement, U.S.C. United States Code for the first time: Hazardous materials also proposed several clarifying and (H), passenger (P), and school bus (S). IV. Legal Basis conforming changes to the ELDT final The ELDT final rule also defined rule. FMCSA received 56 comments on The legal basis of the ELDT final rule, curriculum standards for theory and the NPRM. No public meeting was set forth at 81 FR 88738–88739, also behind-the-wheel (BTW) instruction for requested and none was held. serves as the legal basis for this final Class A and B CDLs and the P and S rule. A summary of the statutory endorsements, and theory instruction C. Interim Final Rule authorities identified in that discussion requirements for the H endorsement. In On February 4, 2020, FMCSA follows. addition, the ELDT final rule required published in the Federal Register an

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interim final rule titled ‘‘Extension of FMCSA Response: This rule accounts the ELDT final rule (see ELDT final rule, Compliance Date for Entry-Level Driver for delays in the implementation of the 81 FR 88732, 88787, Dec. 8, 2016), the Training’’ (85 FR 6088). That interim TPR that were not foreseen at the time Agency provided guidance to the rule extended the compliance date for of the ELDT final rule. The projected public, which can be found at https:// the ELDT final rule, from February 7, disbenefits resulting from the interim www.fmcsa.dot.gov/registration/ 2020, to February 7, 2022. The 2-year rule are not directly comparable to the commercial-drivers-license/eldt. extension applied to all requirements benefits estimated in the ELDT final FMCSA plans to provide further established by the ELDT final rule, rule, as they are to be interpreted guidance as the compliance date including: relative to a baseline consisting of the approaches. 1. The date by which training ELDT final rule, whereas the benefits Comment: A second commenter providers must begin uploading driver- presented in the ELDT final rule were stated that the compliance date should specific ELDT certification information relative to a no-action baseline. not be upheld until the States are fully to the TPR; A direct comparison of the ELDT final on board and are compliant. 2. The date by which SDLAs must rule’s carbon dioxide benefits to the FMCSA Response: FMCSA agrees; the confirm that applicants for a CDL have disbenefits of the interim rule is further new compliance date should provide complied with ELDT requirements prior complicated by the interim rule’s use of States with the time needed to adjust to taking a specified knowledge or skills the interim social cost of carbon values their IT systems to allow them to receive test; developed under E.O. 13783. The the information that the ELDT final rule requires. 3. The date by which training Agency applied these values in lieu of those used in the ELDT final rule Comment: The five remaining providers wishing to provide ELDT individual commenters expressed must be listed on the TPR; and because they were the estimates applicable during the development of disappointment with the delay. One of 4. The date by which drivers seeking these commenters questioned why a CDL or endorsement must complete the interim final rule. FMCSA notes that if those values were recalculated today, FMCSA doesn’t require ‘‘paper the required training, as set forth in the registration’’ to allow the rule to come ELDT final rule. yet a different value would result. FMCSA is not presenting revised into effect. In the interim rule, FMCSA cited IT calculations as this final rule is not FMCSA Response: FMCSA did not development issues largely beyond its changing the compliance date consider implementing ‘‘paper control that prevented the Agency from established by the IFR and showing a registration’’ for either training completing the TPR in time for the different cost would not change that providers or students, as doing so would February 7, 2020, compliance date date. have increased the cost of the ELDT established by the ELDT final rule. Another factor driving the differential final rule, and would require approval Accordingly, the partial delay proposed is the time frame over which the interim from OMB, a process which could in the NPRM was no longer feasible. rule is estimated. The Agency did not require further delay of the compliance FMCSA issued the interim rule with an expect that the cumulative 10-year date. In addition, the ELDT Advisory immediate effective date, but provided a estimates from the ELDT final rule Committee strongly advised against 45-day comment period. FMCSA would be comparable to an interim rule using paper records due to concerns received 20 comments on the interim that projects relative impacts resulting about fraud. FMCSA believes the rule, which are discussed below. from a 2-year delay. Comparing the two electronic transmission of data is more VI. Discussion of Comments and annualized estimates may not prove to secure, more efficient, and ensures that Changes to the Interim Final Rule be informative either, as the ELDT final the required informational elements will rule was annualized over 10 years, and be uniformly understood and reported. As noted above, FMCSA received 20 this one over 4 (see footnote 2, infra). Comment: Another commenter comments on the interim final rule, Comment: The Commercial Vehicle expressing disappointment noted that with 10 of them coming from Training Association (CVTA) made schools have taken steps to get ready for individuals raising issues beyond the several recommendations for FMCSA to the ELDT final rule, including scope of the rulemaking. The increase communication as the new determining how to prove the 80 rulemaking focused on one issue: The compliance date nears. percent proficiency, creating certificates extension of the compliance date. FMCSA Response: These of training, and changing curriculum. Comments received about changes to recommendations will be considered by This commenter noted that it is the underlying ELDT rule are beyond the Agency. imperative to get the ELDT requirements the scope of the NPRM and will not be Comment: Oregon welcomed the in place to reap the safety benefits as discussed. The remaining comments delay but noted several errors in the soon as possible. were from three organizations and seven regulatory text, found in the headings FMCSA Response: FMCSA agrees that individuals. The organizations that for subparts E & F of part 380 and in it is important to get the ELDT commented were the Institute for Policy § 384.230. requirements in place as soon as Integrity at the New York University FMCSA Response: FMCSA corrects possible and acknowledges that training School of Law (IPI), the Commercial these errors, as discussed below in the providers have been proactive in Vehicle Training Association (CVTA), ‘‘Section-by-Section Analysis.’’ implementing the ELDT final rule and the Oregon Department of Comment: One of the individual requirements. This activity will be Transportation (Oregon). commenters explicitly supported the useful when the requirements come into Comment: The IPI comment focuses extension, and requested that FMCSA effect in 2022. FMCSA also notes that on the method FMCSA used to monetize publish a compliance guide on or before training schools may voluntarily the forgone benefits of its interim rule. the new compliance date so businesses implement updated ELDT curricula at According to the IPI, FMCSA have time to understand training any time prior to February 7, 2022. undervalued the forgone benefits by requirements fully. Comment: Two commenters using an interim social cost of carbon, FMCSA Response: While FMCSA was questioned what had changed since instead of using the emission reduction not required to publish small business 2016, when FMCSA stated that the benefits included in the ELDT final rule. compliance guides when it published original 3-year compliance date

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timeframe would be sufficient for VIII. Regulatory Analyses mandates that agencies strive to lessen implementation of the ELDT any adverse effects on these businesses. A. Executive Order (E.O.) 12866 requirements. FMCSA is not required to complete a (Regulatory Planning and Review), E.O. regulatory flexibility analysis because FMCSA Response: As noted in the 13563 (Improving Regulation and the interim rule was not subject to interim rule, FMCSA experienced IT Regulatory Review), and DOT notice and comment under section development issues, including changes Regulatory Policies and Procedures 553(b) of the Administrative Procedure to DOT internal requirements for cloud- This final rule is not a significant Act (5 U.S.C. 553(b)). based IT systems, which added time to regulatory action under section 3(f) of the development process. This delay E.O. 12866, Regulatory Planning and D. Assistance for Small Entities also impacts the States, as SDLAs Review, as supplemented by E.O. 13563 In accordance with section 213(a) of cannot implement necessary IT changes (76 FR 3821, January 21, 2011), and is the Small Business Regulatory until FMCSA completes its IT also not significant within the meaning Enforcement Fairness Act of 1996, specifications. of DOT regulations (49 CFR 5.13(a)) and FMCSA wants to assist small entities in does not require an assessment of understanding this final rule so that VII. Section-by-Section Analysis potential costs and benefits under E.O. they can better evaluate its effects on This final rule affirms the changes 12866. Accordingly, OMB has not themselves and participate in the made by the interim rule. It also makes reviewed it under that order. rulemaking initiative. If the final rule Because the interim rule was effective will affect your small business, non-substantive revisions to correct upon publication, the Agency treats the organization, or governmental errors that were discovered after the interim rule as the baseline for this jurisdiction and you have questions interim rule published. These affirmed analysis. Therefore, this final rule will concerning its provisions or options for changes and non-substantive revisions not result in any incremental impacts compliance, please consult the FMCSA are as follows: relative to that baseline, as it merely point of contact listed in the FOR FMCSA revises the headings for finalizes the 2-year extension of the FURTHER INFORMATION CONTACT section of subparts E and F in part 380, to reflect interim rule.1 this final rule. the change in the compliance date for B. Congressional Review Act Small businesses may send comments entry-level drivers to obtain the training on the actions of Federal employees set forth in subpart F. This change was This rule is not a major rule as who enforce or otherwise determine defined under the Congressional Review inadvertently left out of the interim rule, compliance with Federal regulations to Act (5 U.S.C. 801, et seq.).2 though it was included as an intended the Small Business Administration’s change in the section-by-section C. Regulatory Flexibility Act Small Business and Agriculture analysis of that document. The changes Regulatory Enforcement Ombudsman The Regulatory Flexibility Act (RFA) and the Regional Small Business to the headings have no impact, of 1980 (5 U.S.C. 601 et seq.), as however, as the actual regulatory text Regulatory Fairness Boards. The amended by the Small Business Ombudsman evaluates these actions included the changed dates. FMCSA Regulatory Enforcement Fairness Act of annually and rates each agency’s affirms the revisions to §§ 380.600 and 1996 (Pub. L. 104–121, 110 Stat. 857 responsiveness to small business. If you 380.603. FMCSA also revises the (Mar. 29, 1996), note following 5 U.S.C. wish to comment on actions by heading for subpart G in part 380, which 601), requires Federal agencies to employees of FMCSA, call 1–888–REG– was erroneously left out of the interim consider the effects of the regulatory FAIR (1–888–734–3247). DOT has a rule. Finally, FMCSA is making a action on small entities, analyze policy regarding the rights of small technical correction in § 380.707(a) to effective alternatives that minimize entities to regulatory enforcement add a missing word. small entity impacts, and make their fairness and an explicit policy against analyses available for public comment. FMCSA affirms the changes in retaliation for exercising these rights. The term ‘‘small entities’’ comprises § 383.71, paragraphs (a)(3), (b)(11), and small businesses and not-for-profit E. Unfunded Mandates Reform Act of (e)(5), which changed the individual organizations that are independently 1995 drivers’ compliance date from February owned and operated and are not 7, 2020, to February 7, 2022. The Unfunded Mandates Reform Act dominant in their fields, and of 1995 (2 U.S.C. 1531–1538) requires FMCSA also affirms the changes in governmental jurisdictions with Federal agencies to assess the effects of § 383.73: In paragraphs (b)(11), (e)(9), populations of less than 50,000 (5 U.S.C. their discretionary regulatory actions. In and (p), the interim rule changed the 601(6)). Accordingly, DOT policy particular, the Act addresses actions States’ compliance date from February requires an analysis of the impact of all that may result in the expenditure by a 7, 2020, to February 7, 2022; and in regulations on small entities, and State, local, or Tribal government, in the paragraphs (b)(3) introductory text, aggregate, or by the private sector of (b)(3)(ii), and (e)(9), FMCSA made 1 The full regulatory analyses may be found in the $168 million (which is the value interim rule located in the public docket for this clarifying changes. rulemaking (FMCSA–2007–27748–1474). equivalent of $100,000,000 in 1995, Finally, the Agency affirms the 2 A ‘‘major rule’’ means any rule that the adjusted for inflation to 2019 levels) or Administrator of the Office of Information and more in any one year. Though this final change to the States’ compliance date in Regulatory Affairs at OMB finds has resulted in or §§ 384.230 and 384.301, from February rule will not result in such an is likely to result in (a) an annual effect on the expenditure, the Agency does discuss 7, 2020, to February 7, 2022. FMCSA is economy of $100 million or more; (b) a major the effects of this rule in section IX, also making changes to cross references increase in costs or prices for consumers, individual industries, Federal agencies, State agencies, local subsections A. and B., above. in § 384.230, to account for the changes government agencies, or geographic regions; or (c) made in § 383.73. significant adverse effects on competition, F. Paperwork Reduction Act employment, investment, productivity, innovation, or on the ability of United States-based enterprises This rule calls for an information to compete with foreign-based enterprises in collection under the Paperwork domestic and export markets (5 U.S.C. 804(2)). Reduction Act of 1995 (44 U.S.C. 3501–

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3520) (PRA). As defined in 5 CFR on collecting, storing, and sharing other substantive change to the 1320.3(c), ‘‘collection of information’’ personally identifiable information and regulations, FMCSA continues to rely comprises reporting, recordkeeping, has evaluated protections and upon the previously published 2016 EA monitoring, posting, labeling, and other, alternative information handling to support this final rule. As noted in similar actions. The 2016 ELDT final processes in developing the rule to that EA, implementation of the ELDT rule discussed the changes to the mitigate potential privacy risks. FMCSA final rule imposed new training approved collection of information, but determined that this rule does not standards for certain individuals did not revise the supporting statement change the collection of personally applying for their CDL, an upgrade of for that collection at that time, because identifiable information (PII) as set forth their CDL, or hazardous materials, the changes from the final rule would in the 2016 ELDT final rule. The passenger, or school bus endorsement not take effect until after the expiration supporting Privacy Impact Analysis, for their license. FMCSA found that date of that approved collection (see available for review on the DOT noise, endangered species, cultural PRA discussion at 81 FR 88732, 88788). website, http://www.transportation.gov/ resources protected under the National This collection was revised as part of its privacy, gives a full and complete Historic Preservation Act, wetlands, and renewal cycle, and as required by the explanation of FMCSA practices for resources protected under Section 4(f) of PRA (44 U.S.C. 3507(d)), and FMCSA protecting PII in general and specifically the Department of Transportation Act of submitted its estimate of the burden of in relation to the ELDT final rule, which 1966, 49 U.S.C. 303, as amended by the proposal contained in this final rule would also apply to this final rule. Public Law 109–59, would not be to OMB for its review of the collection As required by the Privacy Act (5 impacted. The impact areas that may be of information renewal. FMCSA U.S.C. 552a), FMCSA and DOT will affected and were evaluated in the 2016 publish, with request for comment, a published the 60-day notice in the EA included air quality, hazardous system of records notice (SORN) that Federal Register on July 3, 2019 (84 FR materials transportation, solid waste, will describe FMCSA’s maintenance 31982). FMCSA published the 30-day and public safety. Specifically, as and electronic transmission of notice in the Federal Register on April outlined in the ELDT final rule RIA, information affected by the 7, 2020 (85 FR 19570), reflecting the FMCSA anticipated that an increase in requirements of the ELDT final rule that changes made by the interim rule. OMB driver training would result in approved the collection on June 26, are covered by the Privacy Act. This improved fuel economy based on 2020 under OMB Control Number 2126– SORN will be published in the Federal changes to driver behavior, such as 0028, which expires on June 30, 2023. Register not less than 30 days before the smoother acceleration and braking The information collection may be Agency is authorized to collect or use practices. Such improved fuel economy viewed at www.reginfo.gov/public/do/ PII retrieved by unique identifier. PRAMain. Find this information is anticipated to result in lower air I. E.O. 13175 (Indian Tribal collection by entering OMB control emissions and improved air quality for number 2126–0028 in the search bar Governments) gases, including carbon dioxide. For the and clicking on the last entry. This rule does not have Tribal interim rule, FMCSA estimated the implications under E.O. 13175, forgone environmental benefits for years G. E.O. 13132 (Federalism) ‘‘Consultation and Coordination with 2020 through 2023. As mentioned A rule has implications for federalism Indian Tribal Governments,’’ because it above, the interim rule temporally under Section 1(a) of E.O. 13132 if it has does not have a substantial direct effect shifted the benefits of the 2016 final rule ‘‘substantial direct effects on the States, on one or more Indian Tribes, on the by two years but otherwise retains the on the relationship between the national relationship between the Federal overall environmental impacts of the government and the States, or on the Government and Indian Tribes, or on 2016 final rule. This final rule makes no distribution of power and the distribution of power and changes that will impact the discussion responsibilities among the various responsibilities between the Federal from the interim rule. levels of government.’’ FMCSA Government and Indian Tribes. List of Subjects determined that this rule would not have substantial direct costs on or for J. National Environmental Policy Act of 49 CFR Part 380 States, nor would it limit the 1969 policymaking discretion of States. The National Environmental Policy Administrative practice and Nothing in this document preempts any Act of 1969 (NEPA) (42 U.S.C. 4321 et procedure, Highway safety, Motor State law or regulation. Therefore, this seq.) requires Federal agencies to carriers, Reporting and recordkeeping rule does not have sufficient federalism integrate environmental values into requirements. implications to warrant the preparation their decision-making processes by 49 CFR Part 383 of a Federalism Impact Statement. considering the potential environmental impacts of their actions. In accordance Administrative practice and H. Privacy with NEPA, FMCSA’s NEPA Order procedure, Alcohol abuse, Drug abuse, Section 522 of title I of division H of 5610.1 (NEPA Implementing Procedures Highway safety, Motor carriers. the Consolidated Appropriations Act, and Policy for Considering 2005, (Pub. L. 108–447, 118 Stat. 2809, Environmental Impacts), and other 49 CFR Part 384 3268, (Dec. 8, 2004), note following 5 applicable requirements, FMCSA Administrative practice and U.S.C. 552a), requires the Agency to prepared an Environmental Assessment procedure, Alcohol abuse, Drug abuse, conduct a privacy impact assessment of (EA) to review the potential impacts of Highway safety, Motor carriers. a regulation that will affect the privacy the ELDT final rule. That EA is available of individuals. The assessment for inspection or copying in the For the reasons set forth in the considers impacts of the rule on the Regulations.gov website listed under preamble, FMCSA adopts as final, the privacy of information in an identifiable ADDRESSES. interim final rule amending 49 CFR form and related matters. The FMCSA Because this rule only finalizes the parts 380, 383, and 384, published Privacy Officer has evaluated the risks interim rule’s delay of the compliance February 4, 2020, at 85 FR 6088, with and effects the rulemaking might have date of the ELDT final rule without any the following changes:

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PART 380—SPECIAL TRAINING Subpart G—Registry of Entry-Level § 384.230 Entry-level driver certification. REQUIREMENTS Driver Training Providers On and After (a) Beginning on February 7, 2022, a February 7, 2022 ■ 1. The authority citation for part 380 State must comply with the continues to read as follows: § 380.707 [Amended] requirements of § 383.73(b)(11) and (e)(9) of this subchapter to verify that Authority: 49 U.S.C. 31133, 31136, 31305, ■ 5. In § 380.707, amend the first the applicant completed the training 31307, 31308, and 31502; sec. 4007(a) and (b) sentence of paragraph (a) by adding the prescribed in subpart F of part 380 of of Pub. L. 102–240 (105 Stat. 2151–2152); word ‘‘with’’ after the words ‘‘certify sec. 32304 of Pub. L. 112–141; and 49 CFR that they will comply’’. this subchapter. 1.87. * * * * * ■ PART 384—STATE COMPLIANCE 2. Revise the heading for subpart E to Issued under the authority of delegation in WITH COMMERCIAL DRIVER’S read as follows: 49 CFR 1.87. LICENSE PROGRAM Subpart E—Entry-Level Driver Training Meera Joshi, Requirements Before February 7, 2022 ■ 6. The authority citation for part 380 Deputy Administrator. continues to read as follows: [FR Doc. 2021–13893 Filed 6–29–21; 8:45 am] ■ 3. Revise the heading for subpart F to read as follows: Authority: 49 U.S.C. 31136, 31301 et seq., BILLING CODE 4910–EX–P and 31502; secs. 103 and 215 of Pub. L. 106– Subpart F—Entry-Level Driver Training 59, 113 Stat. 1753, 1767; sec. 32934 of Pub. Requirements On and After February 7, L. 112–141, 126 Stat. 405, 830; sec. 5401 and 7208 of Pub. L. 114–94, 129 Stat. 1312, 1546, 2022 1593; and 49 CFR 1.87. ■ 4. Revise the heading for subpart G to ■ 7. In § 384.230, revise paragraph (a) to read as follows: read as follows:

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Proposed Rules Federal Register Vol. 86, No. 123

Wednesday, June 30, 2021

This section of the FEDERAL REGISTER received without change, including any 843 to conform the factors to the revised contains notices to the public of the proposed personal identifiers or contact actuarial assumptions. issuance of rules and regulations. The information. purpose of these notices is to give interested Regulatory Impact Analysis FOR FURTHER INFORMATION CONTACT: persons an opportunity to participate in the OPM has examined the impact of this Karla Yeakle, (202) 606–0299. rule making prior to the adoption of the final rule as required by Executive Order rules. SUPPLEMENTARY INFORMATION: On March 12866 and Executive Order 13563, 29, 2021, OPM published a notice at 86 which directs agencies to assess all costs FR 16401 in the Federal Register to OFFICE OF PERSONNEL and benefits of available regulatory revise the normal cost percentages alternatives and, if regulation is MANAGEMENT under the Federal Employees’ necessary, to select regulatory Retirement System (FERS) Act of 1986, approaches that maximize net benefits 5 CFR Part 843 Public Law 99–335, 100 Stat. 514, as (including potential economic, amended, based on economic RIN 3206–AO13 environmental, public, health, and assumptions and demographic factors safety effects, distributive impacts, and Federal Employees’ Retirement adopted by the Board of Actuaries of the equity). A regulatory impact analysis System; Present Value Conversion Civil Service Retirement System. By must be prepared for major rules with Factors for Spouses of Deceased statute under 5 U.S.C. 8461(i), the economically significant effects of $100 Separated Employees revisions to the actuarial assumptions million or more in any one year. This require corresponding changes in factors AGENCY: Office of Personnel used to produce actuarially equivalent rule was not designated as a ‘‘significant Management. benefits when required by the FERS Act. regulatory action,’’ under Executive ACTION: Proposed rule. Section 843.309 of title 5, Code of Order 12866. Federal Regulations, regulates the SUMMARY: The Office of Personnel Regulatory Flexibility Act payment of the basic employee death Management (OPM) is issuing a The Office of Personnel Management benefit. Under 5 U.S.C. 8442(b), the proposed rule to revise the table of certifies that this rule will not have a basic employee death benefit may be reduction factors for early commencing significant economic impact on a paid to a surviving spouse as a lump substantial number of small entities. dates of survivor annuities for spouses sum or as an equivalent benefit in 36 of separated employees who die before installments. These rules amend 5 CFR Federalism the date on which they would be 843.309(b)(2) to conform the factor used eligible for unreduced deferred We have examined this rule in to convert the lump sum to 36- accordance with Executive Order 13132, annuities, and to revise the annuity installment payments with the revised factor for spouses of deceased Federalism, and have determined that economic assumptions. this rule will not have any negative employees who die in service when Section 843.311 of title 5, Code of impact on the rights, roles and those spouses elect to receive the basic Federal Regulations, regulates the responsibilities of State, local, or tribal employee death benefit in 36 benefits for the survivors of separated governments. installments under the Federal employees under 5 U.S.C. 8442(c). This Employees’ Retirement System (FERS) section provides a choice of benefits for Civil Justice Reform Act of 1986. These rules are necessary eligible current and former spouses. If This regulation meets the applicable to ensure that the tables conform to the the current or former spouse is the economic and demographic standard set forth in Executive Order person entitled to the unexpended 12988. assumptions adopted by the Board of balance under the order of precedence Actuaries and published in the Federal under 5 U.S.C. 8424, he or she may elect Unfunded Mandates Reform Act of Register on March 29, 2021, as required to receive the unexpended balance 1995 by law. instead of an annuity. If the separated This rule will not result in the DATES: Send comments on or before employee died before having attained expenditure by state, local, and tribal August 30, 2021. the minimum retirement age, the governments, in the aggregate, or by the ADDRESSES: You may submit comments annuity commences on the day the private sector, of $100 million or more identified by docket number and/or deceased separated employee would in any year and it will not significantly Regulatory Information Number (RIN) have been eligible for an unreduced or uniquely affect small governments. and title, by the following method: annuity as specified under this section. Therefore, no actions were deemed • Federal eRulemaking Portal: http:// If the current or former spouse instead necessary under the provisions of the www.regulations.gov. Follow the elects to receive an adjusted annuity Unfunded Mandates Reform Act of instructions for submitting comments. beginning on the day after the death of 1995. All submissions received must the separated employee, the annuity is include the agency name and docket reduced using the factors in appendix A Congressional Review Act number or RIN for this document. The to subpart C of part 843 to make the The Congressional Review Act (5 general policy for comments and other annuity actuarially equivalent to the U.S.C. 801 et seq.) requires rules (as submissions from members of the public present value of the annuity that the defined in 5 U.S.C. 804) to be submitted is to make these submissions available spouse or former spouse otherwise to Congress before taking effect. OPM for public viewing at http:// would have received. These rules will submit to Congress and the www.regulations.gov as they are amend appendix A to subpart C of part Comptroller General of the United

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States a report regarding the issuance of PART 843—FEDERAL EMPLOYEES Age of separated employee at Multiplier this action before its effective date, as RETIREMENT SYSTEM—DEATH birthday before death required by 5 U.S.C. 801. OMB’s Office BENEFITS AND EMPLOYEE REFUNDS of Information and Regulatory Affairs 41 ...... 2609 has determined that this is not a ‘‘major ■ 1. The authority citation for part 843 42 ...... 2770 rule’’ as defined by the Congressional continues to read as follows: 43 ...... 2936 44 ...... 3119 Review Act (5 U.S.C. 804(2)). Authority: 5 U.S.C. 8461; 843.205, 45 ...... 3308 Paperwork Reduction Act 843.208, and 843.209 also issued under 5 46 ...... 3518 U.S.C. 8424; 843.309 also issued under 5 47 ...... 3735 Notwithstanding any other provision U.S.C. 8442; 843.406 also issued under 5 48 ...... 3969 of law, no person is required to respond U.S.C. 8441. 49 ...... 4220 to, nor shall any person be subject to a 50 ...... 4490 penalty for failure to comply with a Subpart C—Current and Former 51 ...... 4781 collection of information subject to the Spouse Benefits 52 ...... 5094 requirements of the Paperwork ■ 53 ...... 5430 2. In § 843.309, revise paragraph (b)(2) 54 ...... 5792 Reduction Act of 1995 (44 U.S.C. 3501 to read as follows: et seq.) (PRA), unless that collection of 55 ...... 6178 information displays a currently valid § 843.309 Basic employee death benefit. 56 ...... 6601 Office of Management and Budget 57 ...... 7059 * * * * * 58 ...... 7555 (OMB) Control Number. (b) * * * 59 ...... 8092 This rule involves an OMB approved (2) For deaths occurring on or after 60 ...... 8674 collection of information subject to the October 1, 2021, 36 equal monthly 61 ...... 9308 PRA Application for Death Benefits installments of 2.94259 percent of the (FERS)/Documentation and Elections in amount of the basic employee death With at least 20, but less than 30 years of Support of Application for Death benefit. creditable service— Benefits when Deceased was an * * * * * Employee at the Time of Death (FERS), ■ 3. Revise appendix A to subpart C of Age of separated employee at Multiplier 3206–0172. The public reporting burden birthday before death part 843 to read as follows: for this collection is estimated to average 60 minutes per response, Appendix A to Subpart C of Part 843— 36 ...... 2254 including time for reviewing 37 ...... 2389 Present Value Conversion Factors for 38 ...... 2532 instructions, searching existing data Earlier Commencing Date of Annuities 39 ...... 2682 sources, gathering and maintaining the of Current and Former Spouses of 40 ...... 2836 data needed, and completing and Deceased Separated Employees 41 ...... 3010 reviewing the collection of information. With at least 10 but less than 20 years of 42 ...... 3195 The total burden hour estimate for this creditable service— 43 ...... 3388 form is 16,751 hours. The systems of 44 ...... 3599 record notice for this collection is: OPM Age of separated employee at 45 ...... 3818 SORN CENTRAL–1-Civil Service birthday before death Multiplier 46 ...... 4059 Retirement and Insurance Records. 47 ...... 4311 26 ...... 1096 48 ...... 4581 List of Subjects in 5 CFR Part 843 27 ...... 1162 49 ...... 4871 Air traffic controllers, Disability 28 ...... 1232 50 ...... 5182 benefits, Firefighters, Government 29 ...... 1305 51 ...... 5518 52 ...... 5878 employees, Law enforcement officers, 30 ...... 1382 31 ...... 1464 53 ...... 6265 Pensions, Retirement. 32 ...... 1550 54 ...... 6682 Office of Personnel Management. 33 ...... 1643 55 ...... 7128 Alexys Stanley, 34 ...... 1742 56 ...... 7615 57 ...... 8142 Regulatory Affairs Analyst. 35 ...... 1845 36 ...... 1958 58 ...... 8712 For the reasons stated in the 37 ...... 2074 59 ...... 9329 preamble, the Office of Personnel 38 ...... 2198 Management proposes to amend 5 CFR 39 ...... 2327 With at least 30 years of creditable part 843 as follows: 40 ...... 2459 service—

Multiplier by separated employee’s year of birth Age of separated employee at birthday before death From 1950 After 1966 through 1966

46 ...... 4988 .5332 47 ...... 5298 .5664 48 ...... 5631 .6019 49 ...... 5987 .6401 50 ...... 6370 .6810 51 ...... 6781 .7249 52 ...... 7224 .7722 53 ...... 7698 .8229 54 ...... 8209 .8775 55 ...... 8759 .9363

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Multiplier by separated employee’s year of birth Age of separated employee at birthday before death From 1950 After 1966 through 1966

56 ...... 9355 1.0000

[FR Doc. 2021–13774 Filed 6–29–21; 8:45 am] No telefacsimilies (‘‘faxes’’) will be the Appliance and Equipment BILLING CODE 6325–38–P accepted. Standards Program staff at (202) 287– Although DOE has routinely accepted 1445 or by email: public comment submissions through a ApplianceStandardsQuestions@ DEPARTMENT OF ENERGY variety of mechanisms, including postal ee.doe.gov. mail and hand delivery/courier, the SUPPLEMENTARY INFORMATION: On June 4, 10 CFR Part 430 Department has found it necessary to 2021, DOE published an RFI seeking [EERE–2019–BT–STD–0043] make temporary modifications to the data and information that could enable comment submission process in light of the agency to determine whether DOE RIN 1904–AE61 the ongoing COVID–19 pandemic. DOE should propose a ‘‘no-new-standard’’ is currently suspending receipt of public Energy Conservation Program: Energy determination because a more stringent comments via postal mail and hand standard: Would not result in a Conservation Standards for delivery/courier. If a commenter finds Dehumidifiers significant savings of energy; is not that this change poses an undue technologically feasible; is not AGENCY: Office of Energy Efficiency and hardship, please contact Appliance economically justified; or any Renewable Energy, Department of Standards Program staff at (202) 586– combination of the foregoing. 86 FR Energy. 1445 to discuss the need for alternative 29964. On June 18, 2021, an interested ACTION: Extension of public comment arrangements. Once the COVID–19 party in the matter, AHAM, requested a period. pandemic health emergency is resolved, 30-day extension of the public comment DOE anticipates resuming all of its period for the RFI.1 AHAM asked for SUMMARY: On June 4, 2021, the U.S. regular options for public comment this additional time given that Department of Energy (‘‘DOE’’) submission, including postal mail and comments on DOE’s preliminary published a request for information hand delivery/courier. technical support document for clothes (‘‘RFI’’) pertaining to the energy Docket: The docket for this activity, dryers are also due on July 6, 2021. In conservation standards for which includes Federal Register addition, AHAM commented that the dehumidifiers. The notice provided an notices, comments, and other industry is spending a considerable opportunity for submitting written supporting documents/materials, is amount of time responding to proposals comments, data, and information by available for review at from Natural Resources Canada related July 6, 2021. On June 18, 2021, DOE www.regulations.gov. All documents in to five categories of home appliances, as received a request from the Association the docket are listed in the well as DOE’s proposed test procedure of Home Appliance Manufacturers www.regulations.gov index. However, for direct heating equipment. AHAM (‘‘AHAM’’) to extend the public not all documents listed in the index stated that it understands and comment period by 30 days. DOE has may be publicly available, such as appreciates that DOE is working to reviewed this request and is granting a information that is exempt from public move quickly on a number of 15-day extension of the public comment disclosure. rulemakings to satisfy the President’s period to allow public comments to be The docket web page can be found at: climate objectives as well as advance submitted until July 21, 2021. www.regulations.gov/docket/EERE- rulemakings that have missed statutory DATES: The comment period for the RFI 2019-BT-STD-0043. The docket web deadlines. AHAM noted that the published on June 4, 2021 (86 FR page contains instructions on how to statutory deadline for dehumidifiers is a 29964), is extended. DOE will accept access all documents, including public year away and, thus, asserted that a brief comments, data, and information comments, in the docket. delay in the comment period should not regarding this RFI on or before July 21, FOR FURTHER INFORMATION CONTACT: Mr. negatively impact DOE’s ability to meet 2021. Bryan Berringer, U.S. Department of this deadline, nor should it detract from ADDRESSES: Interested persons are Energy, Office of Energy Efficiency and DOE’s ability to catch up on other encouraged to submit comments using Renewable Energy, Building rulemakings, but it would significantly the Federal eRulemaking Portal at Technologies Office, EE–5B, 1000 assist AHAM and its members in www.regulations.gov. Follow the Independence Avenue SW, Washington, providing quality input on DOE’s RFI. instructions for submitting comments. DC 20585–0121. Telephone: (202) 586– DOE has reviewed the request and is Alternatively, interested persons may 0371. Email: extending the comment period to allow submit comments, identified by docket ApplianceStandardsQuestions@ additional time for interested parties to number EERE–2019–BT–STD–0043 by ee.doe.gov. submit comments. As noted, the RFI any of the following methods: Mr. Pete Cochran, U.S. Department of was issued as part of the preliminary 1. Federal eRulemaking Portal: Energy, Office of the General Counsel, stage of a rulemaking to consider www.regulations.gov. Follow the GC–33, 1000 Independence Avenue SW, amendments to the energy conservation instructions for submitting comments. Washington, DC 20585–0121. standards for dehumidifiers. If DOE 2. Email: To Telephone: (202) 586–9496. Email: determines that amended energy Dehumidifiers2019STD0043@ [email protected]. conservation standards may be ee.doe.gov. Include docket number For further information on how to appropriate, additional notices will be EERE–2019–BT–STD–0043 in the submit a comment or review other subject line of the message. public comments and the docket contact 1 AHAM submitted the request to DOE via email.

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published (e.g., a notice of proposed without being unduly burdensome to 2019–BT–TP–0026. The docket web rulemaking), providing interested conduct. DOE welcomes written page contains instructions on how to parties additional opportunity to submit comments from the public on any access all documents, including public comments. As such, DOE has subject within the scope of this comments, in the docket. See section III determined that a 15-day extension is document (including topics not raised for information on how to submit sufficient for this preliminary stage. in this RFI), as well as the submission comments through Therefore, DOE is extending the of data and other relevant information. www.regulations.gov. comment period to July 21, 2021. DATES: Written comments and FOR FURTHER INFORMATION CONTACT: Mr. Signing Authority information are requested and will be Bryan Berringer, U.S. Department of accepted on or before July 30, 2021. Energy, Office of Energy Efficiency and This document of the Department of ADDRESSES Renewable Energy, Building Energy was signed on June 25, 2021, by : Interested persons are Technologies Office, EE–5B, 1000 Kelly Speakes-Backman, Principal encouraged to submit comments using Independence Avenue SW, Washington, Deputy Assistant Secretary and Acting the Federal eRulemaking Portal at DC, 20585- 0121. Telephone: (202) 586– Assistant Secretary for Energy Efficiency www.regulations.gov. Follow the 0371. Email: and Renewable Energy, pursuant to instructions for submitting comments. ApplianceStandardsQuestions@ delegated authority from the Secretary Alternatively, interested persons may ee.doe.gov. of Energy. That document with the submit comments, identified by docket Mr. Pete Cochran, U.S. Department of original signature and date is number EERE–2019–BT–TP–0026, by Energy, Office of the General Counsel, maintained by DOE. For administrative any of the following methods: GC–33, 1000 Independence Avenue SW, purposes only, and in compliance with 1. Federal eRulemaking Portal: Washington, DC 20585–0121. requirements of the Office of the Federal www.regulations.gov. Follow the Telephone: (202) 586–9496. Email: Register, the undersigned DOE Federal instructions for submitting comments. [email protected]. Register Liaison Officer has been 2. Email: to [email protected]. For further information on how to authorized to sign and submit the submit a comment or review other document in electronic format for Include docket number EERE–2019–BT– TP–0026 in the subject line of the public comments and the docket, publication, as an official document of contact the Appliance and Equipment the Department of Energy. This message. No telefacsimilies (‘‘faxes’’) will be Standards Program staff at (202) 287– administrative process in no way alters accepted. For detailed instructions on 1445 or by email: the legal effect of this document upon submitting comments and additional ApplianceStandardsQuestions@ publication in the Federal Register. information on this process, see section ee.doe.gov. Signed in Washington, DC on June 25, III of this document. SUPPLEMENTARY INFORMATION: 2021. Although DOE has routinely accepted Treena V. Garrett, public comment submissions through a Table of Contents Federal Register Liaison Officer, U.S. variety of mechanisms, including the I. Introduction Department of Energy. Federal eRulemaking Portal, email, A. Authority and Background [FR Doc. 2021–13986 Filed 6–29–21; 8:45 am] postal mail, or hand delivery/courier, B. Rulemaking History BILLING CODE 6450–01–P the Department has found it necessary II. Request for Information to make temporary modifications to the A. Scope and Definitions B. Test Procedure comment submission process in light of DEPARTMENT OF ENERGY 1. Updates to Industry Standards the ongoing Covid-19 pandemic. DOE is 2. Variable-Speed Dehumidifiers 10 CFR Part 430 currently suspending receipt of public 3. Psychrometer Setup comments via postal mail and hand 4. Smart Technology [EERE–2019–BT–TP–0026] delivery/courier. If a commenter finds 5. Ventilation Air that this change poses an undue C. Other Test Procedure Topics Energy Conservation Program: Test hardship, please contact Appliance III. Submission of Comments Procedures for Consumer Products; Standards Program staff at (202) 586– I. Introduction Early Assessment Review: 1445 to discuss the need for alternative Dehumidifiers DOE established an early assessment arrangements. Once the Covid-19 review process to conduct a more AGENCY: Office of Energy Efficiency and pandemic health emergency is resolved, focused analysis that would allow DOE Renewable Energy, Department of DOE anticipates resuming all of its to determine, based on statutory criteria, Energy. regular options for public comment whether an amended test procedure is ACTION: Request for information. submission, including postal mail and warranted. The purpose of this review is hand delivery/courier. to limit the resources, from both DOE SUMMARY: The U.S. Department of Docket: The docket for this activity, and stakeholders, committed to Energy (‘‘DOE’’) is undertaking an early which includes Federal Register rulemakings that will not satisfy the assessment review to determine whether notices, comments, and other requirements in the Energy Policy and to proceed with a rulemaking to amend supporting documents/materials, is Conservation Act, as amended the test procedure for dehumidifiers. available for review at (‘‘EPCA’’),1 that an amended test Through this request for information www.regulations.gov. All documents in procedure more accurately or fully (‘‘RFI’’), DOE seeks data and the docket are listed in the comply with the requirement that the information regarding issues pertinent www.regulations.gov index. However, test procedure produces results that to whether an amended test procedure some documents listed in the index, measure energy use during a would more accurately or fully comply such as those containing information representative average use cycle or with the requirement that the test that is exempt from public disclosure, procedure produces results that measure may not be publicly available. 1 All references to EPCA in this document refer energy use during a representative The docket web page can be found at to the statute as amended through jthe Energy Act average use cycle for the product www.regulations.gov/docket?D=EERE- of 2020, Public Law 116–260 (Dec. 27, 2020).

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period of use for the product, and not reports from manufacturers (42 U.S.C. B. Rulemaking History be unduly burdensome to conduct. See 6296). DOE last amended the test procedure Federal energy efficiency 85 FR 8626, 8653–8654 (Feb. 14, 2020). for dehumidifiers on July 31, 2015 As part of the early assessment, DOE requirements for covered products (‘‘July 2015 Final Rule’’), to provide publishes an RFI in the Federal established under EPCA generally technical clarifications and improve Register, announcing that DOE is supersede State laws and regulations repeatability of the test procedure. 80 initiating a rulemaking proceeding and concerning energy conservation testing, FR 45802. The July 2015 Final Rule also soliciting comments, data, and labeling, and standards. (42 U.S.C. 6297) established a new test procedure for information on whether an amended DOE may, however, grant waivers of dehumidifiers at appendix X1 that, test procedure would more accurately Federal preemption for particular State among other things, established separate measure energy use during a laws or regulations, in accordance with provisions for testing whole-home representative average use cycle or the procedures and other provisions of dehumidifiers. Id. DOE’s test procedures reduce testing burden. Based on the EPCA. (42 U.S.C. 6297(d)) for dehumidifiers are prescribed at Title information received in response to the The Federal testing requirements 10 of the Code of Federal Regulations RFI and DOE’s own analysis, DOE will consist of test procedures that (‘‘CFR’’) part 430, subpart B, appendix determine whether to proceed with a manufacturers of covered products must X1 (‘‘appendix X1’’). Manufacturers rulemaking for an amended test use as the basis for: (1) Certifying to were not required to use appendix X1 procedure. DOE that their products comply with If DOE makes an initial determination the applicable energy conservation until the compliance date of a based upon available evidence that an standards adopted pursuant to EPCA (42 subsequent amendment to the energy amended test procedure would not meet U.S.C. 6295(s)), and (2) making conservation standards for the applicable statutory criteria, DOE representations about the efficiency of dehumidifiers. On June 13, 2016, DOE would engage in notice and comment those consumer products (42 U.S.C. published a final rule establishing rulemaking before issuing a final 6293(c)). Similarly, DOE must use these amended energy conservation standards determination that an amended test test procedures to determine whether for dehumidifiers, for which compliance procedure is not warranted. the products comply with relevant was required beginning June 13, 2019. Conversely, if DOE makes an initial standards promulgated under EPCA. (42 81 FR 38338. determination that an amended test U.S.C. 6295(s)) II. Request for Information procedure would satisfy the applicable EPCA requires that the test procedure statutory criteria, DOE would undertake for dehumidifiers be based on the test DOE is publishing this RFI to collect the preliminary stages of a rulemaking criteria used under the ENERGY STAR data and information during the early to issue an amended test procedure. Program Requirements for assessment review to inform its Beginning such a rulemaking, however, Dehumidifiers developed by the U.S. decision, consistent with its obligations would not preclude DOE from later Environmental Protection Agency, as in under EPCA, as to whether the making a determination that an effect on August 8, 2005, unless revised Department should proceed with an amended test procedure would not by DOE pursuant to 42 U.S.C. 6293. (42 amended test procedure rulemaking. satisfy the requirements in EPCA, based U.S.C. 6293(b)(13)) Under 42 U.S.C. Accordingly, in the following sections, upon the full suite of DOE’s analyses. 6293, EPCA sets forth the criteria and DOE has identified a variety of issues on Id. at 85 FR 8654. procedures DOE must follow when which it seeks input to determine prescribing or amending test procedures whether, and if so how, amended test A. Authority and Background for covered products. EPCA requires procedures for dehumidifiers would EPCA, among other things, authorizes that any test procedures prescribed or more accurately or fully comply with DOE to regulate the energy efficiency of amended under this section be the requirements in EPCA that test a number of consumer products and reasonably designed to produce test procedures be reasonably designed to certain industrial equipment. (42 U.S.C. results which measure energy produce test results which reflect energy 6291–6317) Title III, Part B 2 of EPCA efficiency, energy use or estimated use during a representative average use established the Energy Conservation annual operating cost of a covered cycle or period of use, without being Program for Consumer Products Other product during a representative average unduly burdensome to conduct (42 Than Automobiles, which sets forth a use cycle or period of use and not be U.S.C. 6293(b)(3)). unduly burdensome to conduct. (42 variety of provisions designed to A. Scope and Definitions improve energy efficiency. These U.S.C. 6293(b)(3)) products include dehumidifiers, the EPCA also requires that, at least once EPCA defines a dehumidifier as a self- subject of this RFI. (42 U.S.C. every 7 years, DOE review test contained, electrically operated, and 6293(b)(13); 42 U.S.C. 6295 (cc)) procedures for all covered products, mechanically encased assembly The energy conservation program including dehumidifiers, to determine consisting of—(1) a refrigerated surface under EPCA consists essentially of four whether amended test procedures (evaporator) that condenses moisture parts: (1) Testing, (2) labeling, (3) would more accurately or fully comply from the atmosphere; (2) a refrigerating Federal energy conservation standards, with the requirements for the test system, including an electric motor; (3) and (4) certification and enforcement procedures to be reasonably designed to an air-circulating fan; and (4) a means procedures. Relevant provisions of produce test results that reflect energy for collecting or disposing of the EPCA specifically include definitions efficiency, energy use, and estimated condensate. (42 U.S.C. 6291(34)) In (42 U.S.C. 6291), test procedures (42 operating costs during a representative codifying a regulatory definition of U.S.C. 6293), energy conservation average use cycle or period of use and ‘‘dehumidifier,’’ DOE interpreted the standards (42 U.S.C. 6295), labeling not be unduly burdensome to conduct statutory definition as excluding provisions (42 U.S.C. 6294), and the (42 U.S.C. 6293(b)(1)(A)) DOE is portable air conditioners, room air authority to require information and publishing this RFI to collect data and conditioners, and packaged terminal air information to inform its decision in conditioners. 10 CFR 430.2. Products 2 For editorial reasons, upon codification in the satisfaction of this 7-year review meeting this definition are subject to U.S. Code, Part B was redesignated Part A. requirement. DOE’s regulations for testing, certifying,

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and complying with energy appendix X1. The Integrated Energy procedure produces results that are conservation standards. Factor (‘‘IEF’’), representing the representative of an average use cycle In the July 2015 Final Rule, DOE efficiency of the unit expressed in liters and is not unduly burdensome to established definitions for two per kilowatt-hour, is the ratio between conduct. dehumidifier configurations: ‘‘portable the capacity and the combined amount 2. Variable-Speed Dehumidifiers dehumidifiers’’ and ‘‘whole-home of energy consumed by the unit in dehumidifiers.’’ 80 FR 45802, 45805. A dehumidification mode and standby DOE is aware that dehumidifiers are ‘‘portable dehumidifier’’ is a and/or off mode(s), adjusted for the available on the United States market dehumidifier designed to operate within representative number of hours per year that incorporate variable-speed the dehumidified space without ducting spent in each mode. See Section 5.4 of compressors; i.e., ‘‘variable-speed (although means may be provided for appendix X1. dehumidifiers.’’ Variable-speed optional duct attachment). 10 CFR dehumidifiers can avoid compressor 430.2. A ‘‘whole-home dehumidifier’’ is 1. Updates to Industry Standards cycling efficiency losses by modulating a dehumidifier designed to be installed As discussed, the dehumidifier test the compressor speed to match the with ducting to deliver return process procedure at appendix X1 references amount of dehumidification required for air to its inlet and dehumidified process ANSI/AHAM DH–1–2008, an industry a room. These units also avoid air to one or more locations in the test procedure for dehumidifiers, with condensate re-evaporation into the dehumidified space. Id. modification. In 2017, AHAM published ambient room air, which can occur Issue 1: DOE seeks comment on a revision to ANSI/AHAM DH–1 when a dehumidifier cycles off its whether the current definitions of (‘‘ANSI/AHAM DH–1–2017’’). ANSI/ compressor but not its fan during off- ‘‘dehumidifier,’’ ‘‘portable AHAM DH–1–2017 includes provisions cycle mode. The current test procedure dehumidifier,’’ and ‘‘whole-home for testing dehumidifier energy use in in appendix X1 does not capture these dehumidifier’’ require amendment, and off-cycle, inactive, and off modes, and ‘‘cycling losses’’ for single-speed if so, how the terms should be defined. for including energy consumption in dehumidifiers (and avoidance of such Issue 2: DOE requests comment on those modes in efficiency calculations. losses for variable-speed dehumidifiers) whether the existing equipment ANSI/AHAM DH–1–2017 also made because the test unit operates at full definitions specified in 10 CFR 430.2 for other changes. First, it lowered the capacity throughout the test. dehumidifiers require amendments to standard dry-bulb temperature In the July 2015 Final Rule, DOE distinguish further between portable condition for dehumidifiers from 80 °F considered a load-based test which and whole-home units. If they do, DOE (as in ANSI/AHAM DH–1–2008) to 65 °F would capture cycling behavior in seeks information on what identifying (with the required wet-bulb temperature dehumidifiers with single-speed characteristics may be included in changing accordingly to maintain the compressors or speed modulation for potential amended definitions to same relative humidity). variable-speed dehumidifiers. The load- differentiate better between the two Second, it tightened the maximum based test would involve adding configurations. allowed variation for dry-bulb and wet- moisture to the test chamber at a fixed ° B. Test Procedure bulb temperature readings from 2.0 F to rate and allowing the control system of 1.0 °F and from 1.0 °F to 0.5 °F, the dehumidifier to respond to changing Dehumidifiers are tested in respectively. Third, it added guidance moisture levels in the room. 80 FR accordance with appendix X1, which for instrumentation setup, multiple air- 45802, 45809. DOE elected not to adopt incorporates American National intakes and control settings. a load-based test for the dehumidifier Standard Institute (‘‘ANSI’’)/Association Issue 3: DOE seeks comment on test procedure in the July 2015 Final of Home Appliance Manufacturers whether the references to ANSI/AHAM Rule, due to concerns about the (‘‘AHAM’’) Standard DH–1–2008, DH–1–2008 at appendix X1 should be potential increase in test burden. Id. at ‘‘Dehumidifiers,’’ (‘‘ANSI/AHAM DH- updated to the most current version, 80 FR 45810. 1–2008’’), with modification. In part, the ANSI/AHAM DH–1–2017. Issue 8: DOE seeks data on single- DOE test procedure specifies a different Issue 4: DOE requests comment and speed dehumidifiers: (1) Their energy dry- bulb temperature (65 degrees information on whether, and if so, how use when cycling on and off due to Fahrenheit (‘‘°F’’) for portable updating the references in appendix X1 varying relative humidity in the room, dehumidifiers and 73 °F for whole-home to ANSI/AHAM DH–1–2017 would (2) the extent of re-evaporation when dehumidifiers) than ANSI/AHAM DH– impact the measured energy efficiency operating in off-cycle mode, and (3) the 1–2008, while still maintaining the of dehumidifiers tested under the effect of re-evaporation on relative humidity specified by ANSI/ current DOE test procedure. dehumidification mode efficiency. AHAM DH–1–2008. See Section 4.1.1 of Issue 5: DOE requests comment on the Issue 9: DOE seeks feedback and data appendix. impact on test burden were DOE to regarding any alternative test methods X1. Appendix X1 also includes reference ANSI/AHAM DH–1–2017. that may produce results that are more instructions regarding instrumentation, Issue 6: DOE specifically requests representative of variable-speed condensate collection, control settings, feedback on the reduction of the dehumidifier energy consumption, setup, and ducting for whole-home maximum-allowed temperature including, but not limited to, a load- dehumidifiers. See Sections 3.1.2.2; variation in ANSI/AHAM DH–1–2017, based test approach. 3.1.1.4; 3.1.1.5; 3.1.1.1; and 3.1.3 of the potential test burden increase from Issue 10: DOE is also interested in appendix X1. this change, and any effects on information about the nature and extent Under the current test procedure, reliability or reproducibility of results. of the test burden associated with a there is a single method to measure a Issue 7: DOE requests information on load-based test for dehumidifiers. dehumidifier’s product capacity. A whether any modifications to ANSI/ unit’s capacity is the volume of water, AHAM DH–1–2017, other than 3. Psychrometer Setup in pints, the unit removes from the modifications consistent with those Appendix X1, with reference to ambient air per day, normalized to a made to ANSI/AHAM DH–1–2008 in Section 4 ‘‘Instrumentation’’ of ANSI/ standard ambient temperature and the current DOE test procedure, would AHAM DH–1–2008, requires relative humidity. See Section 2.14 of be needed to ensure that DOE’s test dehumidifiers with a single air intake to

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be monitored with an aspirating-type Issue 12: DOE requests comment on effects are not significant enough to psychrometer 3 perpendicular to, and any potential test burden increases warrant the added test burden of one foot in front of, the unit; and, in the associated with additional requirements providing separate fresh-air inflow. 80 case of multiple air intakes, to be regarding psychrometer fan placement FR 45811. DOE also noted the lack of monitored with a separate sampling and orientation relative to the data regarding representative consumer tree. See Sections 3.1.1, 3.1.1.2, 3.1.1.3 temperature sensors, and any burden use of fresh-air inlet ducts for whole- of appendix X1. In the July 2015 Final associated with reducing the acceptable home dehumidifiers. Rule, DOE considered whether certain psychrometer air velocity range. Issue 16: DOE requests data about the psychrometer configuration issues, such Issue 13: DOE requests comment on prevalence of fresh-air inlet use among as variable levels of residual heat from whether it would be appropriate to whole-home dehumidifier consumers. the psychrometer fan and variable air require, or to allow, sampling trees to be Issue 17: DOE seeks feedback on the velocity influencing the accuracy of used with aspirating psychrometers test burden increases associated with temperature sensors, were detrimental regardless of the number of air intakes adding another air-stream in the testing to test repeatability. 80 FR 45812– for a given model, including any data configuration to account for the fresh-air 45813. As discussed in the July 2015 confirming repeatability and especially inlet on those whole-home Final Rule, DOE was unable to repeatability relative to using an dehumidifiers equipped with such a determine whether any repeatability aspirating psychrometer without a feature. sampling tree. improvements are associated with C. Other Test Procedure Topics adjusting the fan location in relation to 4. Smart Technology In addition to the issues identified the dry-bulb and wet-bulb temperature earlier in this document, DOE welcomes sensors, or with tightening the air DOE notes that many types of comment on any other aspect of the velocity requirements through the household products (e.g. refrigerators, existing test procedures for psychrometer. DOE also did not have dryers, room air conditioners) are now dehumidifiers. sufficient data to quantify the burdens equipped with ‘‘connected’’ functionality, such as mobile alerts/ associated with such requirements. Id. III. Submission of Comments at 80 FR 45813. messages, remote control, and energy information and demand response DOE invites all interested parties to Additionally, since publication of the capabilities to support future smart grid submit in writing by July 30, 2021, July 2015 Final Rule, DOE has received interconnection. DOE is aware that comments and information on matters feedback from a testing laboratory that certain manufacturers have incorporated addressed in this notice and on other use of a sampling tree ducted to an some of these features, such as WiFi matters relevant to DOE’s consideration aspirating psychrometer is a common capability, into dehumidifiers. On of amended test procedures for configuration for testing of other September 17, 2018, DOE published an dehumidifiers. These comments and refrigerant-based products, and that RFI on the emerging smart technology information will aid in the development placing the psychrometer itself in front appliance and equipment market. 83 FR of a test procedure notice of proposed of the test unit may impede the 46886. In that RFI, DOE sought rulemaking for dehumidifiers if DOE instrument’s ability to effectively information to better understand market determines that amended test monitor the inlet air conditions. In the trends and issues in the emerging procedures may be appropriate for these July 2015 Final Rule, DOE considered a market for appliances and commercial products. proposal to require sampling trees for equipment that incorporate smart Submitting comments via testing all dehumidifiers, regardless of technology. DOE’s intent in issuing the www.regulations.gov. The the number of air intakes, for RFI was to ensure that DOE did not www.regulations.gov web page will consistency and repeatability. However, inadvertently impede such innovation require you to provide your name and based on available data, DOE was in fulfilling its statutory obligations in contact information. Your contact unable to conclude at that time that the setting efficiency standards for covered information will be viewable to DOE use of a sampling tree would be more products and equipment. DOE seeks Building Technologies staff only. Your reliable than the psychrometer-only comments, data and information on the contact information will not be publicly approach. Id. at 80 FR 45812–45813. issues presented in the RFI as they may viewable except for your first and last Issue 11: DOE seeks data on the effect apply to dehumidifiers. names, organization name (if any), and of residual heat from the psychrometer Issue 14: DOE requests data on the submitter representative name (if any). fan and the effects of psychrometer air prevalence of connected functionality in If your comment is not processed velocity on temperature measurement dehumidifiers currently on the market properly because of technical repeatability when using a in the United States. difficulties, DOE will use this psychrometer, rather than a humidity Issue 15: DOE requests information on information to contact you. If DOE sensor, under the current (appendix X1) whether the current test procedures for cannot read your comment due to test procedure. dehumidifiers impede the ability of technical difficulties and cannot contact DOE seeks information and data on manufacturers to provide smart you for clarification, DOE may not be measures that can be employed to technology operations on dehumidifiers. able to consider your comment. minimize any such effects when using However, your contact information a psychrometer, as well as information 5. Ventilation Air will be publicly viewable if you include regarding the repeatability of Appendix X1 requires that any fresh- it in the comment or in any documents measurements when such measures are air inlet on a whole-home dehumidifier attached to your comment. Any used. be capped and sealed during testing. See information that you do not want to be Section 3.1.3 of appendix X1. In the July publicly viewable should not be 3 In an aspirating-type psychrometer, a wet-bulb 2015 Final Rule, DOE determined that, included in your comment, nor in any and a dry-bulb thermometer are mounted inside a while sealing the fresh-air inlet on document attached to your comment. case that also contains a fan. The fan draws air dehumidifiers designed to operate with Following this instruction, persons across both thermometers, and the resulting wet- bulb and dry-bulb temperatures are used to the fresh-air intake open may negatively viewing comments will see only first determine the percent relative humidity. impact capacity and efficiency, those and last names, organization names,

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correspondence containing comments, Confidential Business Information. Signed in Washington, DC, on June 25, and any documents submitted with the According to 10 CFR 1004.11, any 2021. comments. person submitting information that he Treena V. Garrett, Do not submit to www.regulations.gov or she believes to be confidential and Federal Register Liaison Officer, U.S. information for which disclosure is exempt by law from public disclosure Department of Energy. restricted by statute, such as trade should submit via email two well- [FR Doc. 2021–13982 Filed 6–29–21; 8:45 am] secrets and commercial or financial marked copies: One copy of the BILLING CODE 6450–01–P information (hereinafter referred to as document marked confidential Confidential Business Information including all the information believed to (‘‘CBI’’)). Comments submitted through be confidential, and one copy of the FEDERAL RESERVE SYSTEM www.regulations.gov cannot be claimed document marked ‘‘non-confidential’’ as CBI. Comments received through the with the information believed to be 12 CFR Part 235 website will waive any CBI claims for confidential deleted. Submit these [Regulation II; Docket No. R–1748] the information submitted. For documents via email to information on submitting CBI, see the [email protected]. RIN 7100–AG15 Confidential Business Information DOE will make its own determination section. about the confidential status of the Debit Card Interchange Fees and DOE processes submissions made information and treat it according to its Routing determination. through www.regulations.gov before AGENCY: Board of Governors of the posting. Normally, comments will be It is DOE’s policy that all comments Federal Reserve System. posted within a few days of being may be included in the public docket, ACTION: submitted. However, if large volumes of without change and as received, Notice of proposed rulemaking; comments are being processed including any personal information extension of comment period. simultaneously, your comment may not provided in the comments (except SUMMARY: On May 13, 2021, the Board be viewable for up to several weeks. information deemed to be exempt from of Governors of the Federal Reserve Please keep the comment tracking public disclosure). System (Board) published in the Federal number that www.regulations.gov DOE considers public participation to Register a proposal to amend Regulation provides after you have successfully be a very important part of the process II to clarify that the requirement that uploaded your comment. for developing test procedures and each debit card transaction must be able Submitting comments via email. energy conservation standards. DOE to be processed on at least two Comments and documents submitted actively encourages the participation unaffiliated payment card networks via email will be posted to and interaction of the public during the applies to card-not-present transactions, www.regulations.gov. If you do not want comment period in each stage of this clarify the requirements that Regulation your personal contact information to be process. Interactions with and between II imposes on debit card issuers to publicly viewable, do not include it in members of the public provide a ensure that at least two unaffiliated your comment or any accompanying balanced discussion of the issues and payment card networks have been documents. Instead, provide your assist DOE in the process. Anyone who enabled for debit card transactions, and contact information on a cover letter. wishes to be added to the DOE mailing standardize and clarify the use of Include your first and last names, email list to receive future notices and certain terminology. The proposal address, telephone number, and information about this process should provided for a comment period ending optional mailing address. The cover contact Appliance and Equipment on July 12, 2021. The Board is extending letter will not be publicly viewable as Standards Program staff at (202) 287– the comment period for 30 days, until long as it does not include any 1445 or via email at August 11, 2021. comments. ApplianceStandardsQuestions@ DATES: The comment period for the Include contact information each time ee.doe.gov. notice of proposed rulemaking you submit comments, data, documents, published on May 13, 2021 (86 FR and other information to DOE. No faxes Signing Authority 26189), is extended. Comments must be will be accepted. This document of the Department of received by August 11, 2021. Comments, data, and other Energy was signed on June 25, 2021, by information submitted to DOE Kelly Speakes-Backman, Principal ADDRESSES: You may submit comments electronically should be provided in Deputy Assistant Secretary and Acting by any of the methods identified in the PDF (preferred), Microsoft Word or Assistant Secretary for Energy Efficiency proposal. Excel, WordPerfect, or text (ASCII) file and Renewable Energy, pursuant to FOR FURTHER INFORMATION CONTACT: Jess format. Provide documents that are not delegated authority from the Secretary Cheng, Senior Counsel (202–452–2309), secured, written in English and free of of Energy. That document with the Legal Division; or Krzysztof Wozniak, any defects or viruses. Documents original signature and date is Manager (202–452–3878), Elena should not contain special characters or maintained by DOE. For administrative Falcettoni, Economist (202–452–2528), any form of encryption and, if possible, purposes only, and in compliance with or Larkin Turman, Financial Institution they should carry the electronic requirements of the Office of the Federal and Policy Analyst (202–452–2388), signature of the author. Register, the undersigned DOE Federal Division of Reserve Bank Operations Campaign form letters. Please submit Register Liaison Officer has been and Payment Systems. Users of campaign form letters by the originating authorized to sign and submit the Telecommunication Device for Deaf organization in batches of between 50 to document in electronic format for (TDD) only, call (202) 263–4869. 500 form letters per PDF or as one form publication, as an official document of SUPPLEMENTARY INFORMATION: On May letter with a list of supporters’ names the Department of Energy. This 13, 2021, the Board of Governors of the compiled into one or more PDFs. This administrative process in no way alters Federal Reserve System (Board) reduces comment processing and the legal effect of this document upon published in the Federal Register a posting time. publication in the Federal Register. proposal to amend Regulation II to

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clarify that the requirement that each Act of 1973. Please do not submit your III. Potential Areas for Improvement debit card transaction must be able to be comment multiple times via different IV. Request for Comments processed on at least two unaffiliated methods. You may submit comments by A. Existing FCA Liquidity Regulations payment card networks applies to card- any of the following methods: B. Applicability of the Liquidity Coverage • Ratio and Net Stable Funding Ratio not-present transactions, clarify the Email: Send us an email at reg- C. Other Comments Requested requirements that Regulation II imposes [email protected]. on debit card issuers to ensure that at • FCA website: http://www.fca.gov. I. Introduction least two unaffiliated payment card Click inside the ‘‘I want to . . .’’ field A. Objectives of the Advance Notice of networks have been enabled for debit near the top of the page; select Proposed Rulemaking card transactions, and standardize and ‘‘comment on a pending regulation’’ clarify the use of certain terminology.1 from the dropdown menu; and click FCA’s purpose in this Advance Notice The proposal provided for a comment ‘‘Go.’’ This takes you to an electronic of Proposed Rulemaking is to gather period ending on July 12, 2021. Since public comment form. public input to: • Ensure that each FCS bank operates the publication of the proposal, the • Mail: Kevin J. Kramp, Director, under a comprehensive liquidity Board has received comments Office of Regulatory Policy, Farm Credit framework, so it consistently maintains requesting a 30-day extension of the Administration, 1501 Farm Credit Drive, adequate liquidity to cover all of its comment period. An extension of the McLean, VA 22102–5090. potential obligations, including comment period will provide additional You may review copies of comments unfunded commitments and other opportunity for interested parties to we receive on our website at http:// material contingent liabilities, under www.fca.gov. Once you are on the analyze the proposal and prepare and stressful conditions; submit comments. Therefore, the Board website, click inside the ‘‘I want to • Assess if, and to what extent, the is extending the end of the comment . . .’’ field near the top of the page; Basel III International framework for period for the proposal from July 12, select ‘‘find comments on a pending liquidity risk measurement, standards 2021 to August 11, 2021. regulation’’ from the dropdown menu; and monitoring (hereafter ‘‘Basel III By order of the Board of Governors of the and click ‘‘Go.’’ This will take you to the Liquidity Framework’’), issued by the Federal Reserve System, acting through the Comment Letters page where you can Basel Committee on Banking Secretary of the Board under delegated select the regulation for which you Supervision (BCBS), and regulations of authority. would like to read the public comments. the Federal banking regulatory agencies Ann E. Misback, We will show your comments as (FRBAs) implementing this framework Secretary of the Board. submitted, including any supporting for banking organizations should [FR Doc. 2021–13533 Filed 6–29–21; 8:45 am] data provided, but for technical reasons influence revisions to FCA’s existing we may omit items such as logos and 1 BILLING CODE P liquidity framework; special characters. Identifying • Determine if the Basel III Liquidity information that you provide, such as Framework is appropriate for FCS phone numbers and addresses, will be FARM CREDIT ADMINISTRATION banks, and evaluate the impacts of publicly available. However, we will augmenting FCA’s existing liquidity 12 CFR Part 615 attempt to remove email addresses to framework to incorporate appropriate help reduce internet spam. You may aspects of the Basel III Liquidity RIN 3052–AD44 also review comments at our office in Framework and the FBRAs’ McLean, Virginia. Please call us at (703) 2 Bank Liquidity Reserve implementation of the framework; and 883–4056 or email us at reg-comm@ • Determine the respective costs and AGENCY: Farm Credit Administration. fca.gov to make an appointment. benefits of updating FCA’s liquidity ACTION: Advance notice of proposed FOR FURTHER INFORMATION CONTACT: framework for FCS banks. rulemaking. Technical information: Ryan Leist, B. Background on System Liquidity [email protected], Senior Accountant, or SUMMARY: The Farm Credit Jeremy R. Edelstein, [email protected], In 1916, Congress created the System Administration (FCA, we, our) is Associate Director, Finance and Capital to provide permanent, stable, affordable, contemplating revising its liquidity Markets Team, Office of Regulatory regulations so Farm Credit System (FCS 1 The Federal banking regulatory agencies include Policy, Farm Credit Administration, the Office of the Comptroller of the Currency, Board or System) banks can better withstand McLean, VA 22102–5090, (703) 883– of Governors of the Federal Reserve System crises that adversely impact liquidity 4414, TTY (703) 883–4056, or (hereafter Federal Reserve Board), and the Federal and pose a risk to their viability. FCA [email protected]; Deposit Insurance Corporation. See ‘‘Liquidity Coverage Ratio: Liquidity Risk Measurement is considering whether to amend our or Standards,’’ 79 FR 61440 (October 10, 2014) and existing liquidity regulatory framework. Legal information: Richard Katz, ‘‘Net Stable Funding Ratio: Liquidity Risk We are seeking comments from the Measurement Standards and Disclosure [email protected], Senior Counsel, Office public on how to amend or restructure Requirements,’’ 86 FR 9120 (February 11, 2021). of General Counsel, Farm Credit 2 our liquidity regulations. Basel III was published in December 2010 and Administration, McLean, VA 22102– revised in June 2011. The text is available at http:// DATES: Please send us your comments 5090, (703) 883–4020, TTY (703) 883– www.bis.org/publ/bcbs189.htm. The BCBS was on or before September 28, 2021. established in 1974 by central banks with bank 4056. supervisory authorities in major industrial ADDRESSES: For accuracy and efficiency SUPPLEMENTARY INFORMATION: countries. The BCBS develops banking guidelines reasons, please submit comments by and recommends them for adoption by member email or through FCA’s website. We do Table of Contents countries and others. BCBS documents are available at https://www.bis.org/. The FCA does not have not accept comments submitted by I. Introduction representation on the Basel Committee, as do the facsimiles (fax), as faxes are difficult for A. Objectives of the Advance Notice of FBRAs, and is not required by law to follow the us to process and achieve compliance Basel standards. The Basel III Liquidity Coverage Proposed Rulemaking Ratio and liquidity risk monitoring tools document with section 508 of the Rehabilitation B. Background on System Liquidity was published in January 2013 and the Net stable II. Recent Updates to System Liquidity funding ratio document was published in October 1 86 FR 26189 (May 13, 2021). Regulations 2014.

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and reliable sources of credit and borrowers. Although section 4.2(a) of objectives of our 2013 liquidity final related services to American agricultural the Act authorizes FCS banks to borrow rule 10 were to: and aquatic producers. The System from commercial banks and other • Improve the capacity of FCS banks currently consists of 3 Farm Credit lending institutions, lines of credit with to pay their obligations and fund their Banks, 1 agricultural credit bank, 66 such lenders are only used as a operations by maintaining adequate agricultural credit associations, 1 secondary source of liquidity. liquidity to withstand various market Federal land credit association, service As a government-sponsored enterprise disruptions and adverse economic or corporations, and the Federal Farm (GSE), the System depends on financial conditions; Credit Banks Funding Corporation continuing access to the capital markets • Strengthen liquidity management at (Funding Corporation).3 Farm Credit to obtain the funds necessary to extend all FCS banks; banks (which include both the Farm credit to agriculture, aquaculture, rural • Enhance the liquidity of assets that Credit Banks and the agricultural credit utilities, and rural housing in both good System banks hold in their liquidity bank) issue System-wide consolidated and bad economic times. If access to the reserves; debt obligations in the capital markets capital markets becomes impeded for • Require FCS banks to maintain a through the Funding Corporation,4 any reason, FCS banks must have three-tiered liquidity reserve. The first which enable the System to extend enough readily available funds and tier of the liquidity reserve must consist short-, intermediate-, and long-term assets that can be quickly converted into of a sufficient amount of cash and cash- credit and related services to farmers, cash to continue operations and pay like instruments to cover each bank’s ranchers, aquatic producers and maturing obligations. Unlike financial obligations for 15 days. The harvesters, their cooperatives, rural commercial banks, the System does not second and third tiers of the liquidity utilities, exporters of agricultural have a lender of last resort and does not reserve must contain cash and highly commodities products, and capital have a guaranteed line of credit from the liquid instruments that are sufficient to equipment, farm-related businesses, and U.S. Treasury or the Federal Reserve. cover the bank’s obligations for the next certain rural homeowners.5 The As part of our ongoing efforts to 15 and subsequent 60 days, System’s enabling statute is the Farm ensure the FCS banks have sufficient respectively; Credit Act of 1971, as amended (Act).6 liquidity to fund operations in the event • Establish a supplemental liquidity In many respects, the FCS is different of market disruptions, and in light of buffer that a bank can draw upon during from other lenders. In contrast to most updated guidance and regulations an emergency and is sufficient to cover commercial banks and other financial published by the BCBS and FBRAs, we the bank’s liquidity needs beyond 90 institutions, the System lends primarily are soliciting comments on the best days; and to agriculture and other eligible ways to enhance FCA’s existing • Strengthen each bank’s Contingency borrowers in rural areas. Unlike most liquidity framework. Funding Plan (CFP). As explained in the preamble to the other lenders, FCS banks and II. Recent Updates to System Liquidity 2013 final rule, the amendments to associations are cooperatives that are Regulations owned and controlled by their member- § 615.5134 incorporated many of the borrowers. Their common equity is not FCA regulations governing System principles that the BCBS and the FBRAs publicly traded. The System also funds banks’ liquidity were last substantially have articulated on liquidity its operations differently than most updated in 2013 in response to the 2008 management because many of these commercial lenders. FCS banks and financial crisis.7 FCA proposed fundamental concepts apply to all associations are not depository amendments to its liquidity financial institutions, including FCS institutions, and for this reason, System- requirements in 2011 to improve the banks. The comprehensive supervisory wide debt securities, not deposits, are quality of liquidity and bolster the approach developed by the BCBS and the System’s primary source for funding ability of the System banks to fund their the FBRAs effectively strengthens both loans to agricultural producers, their operations during times of economic, the liquidity reserves and the liquidity cooperatives, and other eligible financial, or market adversity.8 At the risk management practices at regulated time, FCA considered the Basel III financial institutions. 3 Number of institutions as of January 1, 2021. Liquidity Framework that was FCA’s update created three levels of The Federal Agricultural Mortgage Corporation published in September 2008 and liquid assets (levels 1, 2, and 3) which (Farmer Mac), which is also a System institution, December 2010,9 but decided not to has authority to operate secondary markets for are similar to, but not exactly the same agricultural real estate mortgage loans, rural adopt the Basel III liquidity ratios. The as, the three levels of high-quality liquid housing mortgage loans, and rural utility final rule incorporated the liquidity assets (HQLA) established in the Basel cooperative loans. The FCA has a separate set of coverage principles of Basel III as III Liquidity Framework (levels 1, 2a, liquidity regulations that apply to Farmer Mac. This appropriate to the System, improved the Advance Notice of Proposed Rulemaking does not and 2b) and used in the Liquidity affect Farmer Mac, and the use of the term ‘‘System System’s ability to withstand market Coverage Ratio (LCR).11 In addition, institution’’ in this preamble does not include disruptions by strengthening liquidity FCA’s framework adopted core concepts Farmer Mac. management practices at Farm Credit of the FBRA’s rules, including the 4 The Funding Corporation is established banks, and enhanced the liquidity of pursuant to section 4.9 of the Farm Credit Act of supplemental liquidity buffer, specific 1971, as amended, and is owned by all Farm Credit assets in their liquidity reserves. The policies and internal controls that banks. combat liquidity risk, and CFPs based in 5 The agricultural credit bank lends to, and 7 See 78 FR 23438 (April 18, 2013), as corrected part on the results of liquidity stress provides other financial services to farmer-owned by 78 FR 26701 (May 8, 2013). In addition, tests. cooperatives, rural utilities (electric and technical, non-substantive revisions to the terms telecommunications), and rural water and waste ‘‘Government-sponsored enterprise (GSE)’’ and The Basel III Liquidity Framework is water disposal systems. It also finances U.S. ‘‘U.S. Government agency’’ were made in 2018 (83 not the only basis for the existing agricultural exports and imports, and provides FR 27486 (June 12, 2018)). liquidity regulation. The regulation was international banking services to cooperatives and 8 See 76 FR 80817 (December 27, 2011). also based upon the System’s own other eligible borrowers. The agricultural credit 9 See ‘‘Principles for Sound Liquidity Risk initiatives to improve liquidity bank operates a Farm Credit Bank subsidiary. Management and Supervision.’’ September 2008; 6 12 U.S.C. 2001–2279cc. The Act is available at and ‘‘Basel III: International framework for liquidity www.fca.gov under ‘‘Laws and regulations,’’ and risk measurement, standards and monitoring.’’ 10 See supra footnote 7. ‘‘Statutes.’’ December 2010. 11 See 79 FR 61440 (October 10, 2014).

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management as well as the FCA’s FCA has closely monitored how the NSFR is designed to act as a experiences from examining liquidity FBRAs have adjusted Basel III and complement to the LCR to mitigate the risk management at Farm Credit banks applied it to the institutions they risks of banking organizations and the Funding Corporation. In this supervise since 2013. In response to supporting their assets with context, the regulation implemented the these developments and more recent insufficiently stable funding. The LCR best practices available for liquidity adverse market conditions, FCA applies to large banking organizations management at FCS banks at the time. believes it is appropriate to consider and does not apply to community The Farm Credit System Insurance updates to the existing FCA liquidity banking and savings associations. When Corporation (FCSIC) may use its framework.16 the final NSFR rule becomes effective Insurance Fund as a backup source of III. Potential Areas for Improvement on July 1, 2021, it too will apply to large liquidity for System banks through its banking organizations, but not assistance authorities.12 Additionally, Our current liquidity regulation community banks and small saving subsequent to FCA adopting the rule, § 615.5134, which we finalized in 2013, associations. FCSIC entered into an agreement with responded to the 2008 financial crisis. The Basel III Liquidity Framework the Federal Financing Bank (FFB) for a More specifically, this regulation encourages regulated entities to account $10 billion line of credit.13 Pursuant to improves the System’s liquidity for unfunded commitments and other this agreement, the FFB may advance management and bolsters the ability of contingent obligations in their liquidity funds to FCSIC when exigent market the System banks to fund their reserve calculations, and for this reason, circumstances 14 make it extremely operations during times of economic, its concepts are relevant to this doubtful that: The Funding Corporation financial, or market adversity. At the rulemaking and the maintenance of can issue new System-wide debt time, FCA considered the Basel III adequate liquidity at FCS banks. After obligations to repay maturing Liquidity Framework and how to tailor careful consideration of the comments obligations; and one or more insured it to the unique circumstances of System received on the 2011 liquidity proposed System banks will be able to pay banks. The FBRAs had not yet enacted rule, FCA decided not to incorporate maturing debt obligations without regulations that implemented Basel III, unfunded commitments into the selling available liquidity reserve assets and we decided it would be premature existing regulation, however, FCA stated at a material loss. If necessary, FCSIC for FCA to adopt the LCR and the Net it may address unfunded commitments would use the funds advanced by the Stable Funding Ratio (NSFR) for System at a later time. As a result, FCA’s FFB to increase amounts in its banks. FCA’s existing regulation has liquidity reserve requirement does not Insurance Fund to provide assistance to achieved FCA’s objectives by ensuring capture funds held or unfunded the System banks until market that System banks have a satisfactory commitments on retail loans or on the 15 conditions improve. liquidity framework. Yet, the time has direct note. While these unfunded The decision whether to provide come for FCA to revisit these issues and commitments are generally captured as assistance, including seeking funds from decide how best to strengthen and part of the liquidity stress tests update § 615.5134 so System banks are the FFB, is at the discretion of FCSIC, incorporated into a bank’s CFP, the CFP in a better position to respond to and each funding obligation of the FFB in the existing rule gives System banks emerging risks and constantly changing is subject to various terms and considerable discretion to determine the market conditions. conditions and, as a result, there can be cash flow assumptions and discount no assurance that funding would be Between 2013 and 2020, the BCBS and FBRAs issued new guidance and factors used to determine the amount of available if needed by the System. This liquidity reserves they should hold for FCSIC–FFB revolving credit facility is regulations to improve the liquidity framework for the banking sector. The these potential cash outflows. subject to annual renewal. Additionally, Modifying FCA’s liquidity reserve the agreement only applies during new regulations included the LCR that was finalized in 2014 17 and the NSFR, requirement to capture unfunded exigent market circumstances, and can commitments or adopting an LCR/NSFR only be used if the amount needed to which was proposed in 2016 18 and finalized in November 2020.19 The framework may promote stronger repay maturing System-wide insured liquidity profiles at System banks by debt obligations will exceed available LCR 20 focuses on short-term liquidity risk from severe market stresses and the improving how liquidity is measured Insurance Fund reserves. As such, FCA and reported. Furthermore, this does not consider potential FCSIC NSFR 21 promotes stable funding structures over a one-year horizon. The modification would help ensure that a assistance, including additional System bank has enough liquidity to amounts available through its agreement meet its unfunded commitments during with the FFB, when determining 16 The FCA has broad authority under various provisions of the Act to supervise and regulate a liquidity crisis. liquidity requirements or completing liquidity management at FCS banks. Section 5.17(a) The containment measures adopted in examinations of liquidity and related of the Act authorizes the FCA to: (1) Approve the early 2020 in response to COVID–19 management practices at FCS issuance of FCS debt securities under section 4.2(c) and (d) of the Act; (2) establish standards regarding slowed economic activity in the United institutions. loan security requirements at FCS institutions, and States.22 Financial conditions tightened regulate the borrowing, repayment, and transfer of markedly in March and April 2020 and 12 See 12 U.S.C. 2277a–10(a)(1); Section 5.61(a)(1) funds between System institutions; (3) prescribe sudden disruptions in financial markets of the Act. rules and regulations necessary or appropriate for 13 On September 24, 2013, FCSIC entered into an carrying out the Act; and (4) exercise its statutory put increasing liquidity pressure on agreement with the FFB, a U.S. government enforcement powers for the purpose of ensuring the certain credit markets. In response to corporation subject to the supervision and direction safety and soundness of System institutions. the pandemic, the Federal Reserve of the U.S. Treasury. 17 See 79 FR 61440 (October 10, 2014). 18 Board established a number of funding, 14 An ‘‘exigent market circumstance’’ is a broad See 81 FR 35124 (June 1, 2016). credit, liquidity, and loan facilities to disruption across U.S. credit markets that originates 19 See 86 FR 9120 (February 11, 2021). The final external to and independent of the Farm Credit rule will become effective on July 1, 2021. provide liquidity to the financial System. 20 See BCBS, ‘‘Basel III: The Liquidity Coverage 15 The agreement provides for a short-term Ratio and liquidity risk monitoring tools’’ (January 22 See Proclamation 9994, ‘‘Declaring a National revolving credit facility of up to $10 billion, is 2013). Emergency Concerning the Novel Coronavirus renewable annually and terminates on September 21 See BCBS, ‘‘Basel III: The net stable funding Disease COVID–19 Outbreak,’’ 85 FR 15337 (March 30, 2021, unless otherwise further extended. ratio’’ (October 2014). 18, 2020).

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system.23 One of these programs, the therefore, exposure to unfunded to function as an undrawn backup that Paycheck Protection Program (PPP) commitments and other contingent would be utilized to refinance debt Liquidity Facility, was directly available obligations varies within the FCS. As obligations of a borrower in situations to System institutions, while other part of each System bank’s general where the borrower is unable to rollover facilities indirectly increased the financing agreement (GFA) with its that debt in financial markets. liquidity of System institutions’ assets affiliated associations, System banks Alternatively, credit facilities provide a held in their liquidity reserves.24 FCA have an unfunded commitment to each line of credit for borrower’s general provided System institutions with affiliated association that is a possible corporate or working capital purposes. guidance to manage the challenges outflow of liquidity. The unfunded These lines of credit to retail borrowers associated with the COVID–19 commitment amount is the difference may or may not be unconditionally pandemic, including certain regulatory between the association’s maximum cancellable. A sudden surge in borrower capital relief for PPP loans and PPP credit limit with the System bank under demand for funds under these lines may loans pledged to the PPP Liquidity the GFA or promissory note 26 and the increase demands on the bank’s Facility.25 Throughout the market amount the association has borrowed liquidity at a time when market access turbulence in early 2020, System banks from the System bank. is becoming impeded. These unfunded maintained satisfactory liquidity The GFA permits a System bank to commitments potentially expose both reserves, however; the market terminate an association’s loan or to FCS banks and associations to conditions caused by COVID–19 refuse to make additional disbursements significant safety and soundness risks.30 provided FCA the opportunity to in the event of default. The Act To incorporate consideration of these observe the existing liquidity framework prohibits an association from borrowing unfunded commitments, the liquidity under adverse market conditions. from commercial banks or other rules of the FBRAs apply a multiplier or Based on these developments, FCA is financial institutions without its ‘‘factor’’ to the gross notional amount to considering whether changes to our funding bank’s approval.27 We believe reflect assumptions on how exposures liquidity regulations are appropriate or there may be merit in incorporating will result in ‘‘cash outflows.’’ These needed. these possible outflows for the bank’s factors are multiplied by the total IV. Request for Comments unfunded commitment to its affiliated amount of each outflow item to associations into the existing liquidity determine the regulatory outflow We request and encourage any reserve requirement because the amount. The factor applied is interested person(s) to submit comments associations are fully dependent on the dependent on the type of exposure, and on the following questions and ask that bank for funding its operations so it can is consistent with the Basel III Liquidity you support your comments with fulfill its mission. Framework and the FBRAs’ evaluation relevant data, analysis, or other System banks also have unfunded of relevant supervisory information. The information. We remind commenters commitments or other material factors applied consider the potential that comments, data, and other contingent liabilities to other financing impact of idiosyncratic and market-wide information submitted in support of a institutions (OFIs) that increase shocks.31 comment, will be available to the public 28 liquidity risk. System banks are While unfunded commitments at through our website. required to provide funding, or provide System banks should be analyzed in the We have organized our questions into similar financial assistance to any the following categories: (A) Existing CFP, banks have significant discretion creditworthy OFI that meets certain about the assumptions (i.e., factor) FCA Liquidity Regulations and (B) requirements.29 Although the GFAs Applicability of the LCR and NSFR. applied. For example, to reflect varying with OFIs may permit a System bank to drawdown assumptions System banks A. Existing FCA Liquidity Regulations refuse to make additional disbursements may apply a factor, similar to the factors in the event of default, a System bank Unfunded Commitments of FCS Banks applied in the FBRAs’ rules, to notional would likely be required to give prior amounts outstanding. A higher factor Each FCS bank has its own unique notice to cancel unfunded commitments reflects a higher drawdown potential of circumstances and risk profile and, to OFIs. As part of their GFA with OFIs, the undrawn portion of these System banks can be legally obligated to commitments and results in a higher 23 Section 1101 of the Dodd-Frank Wall Street fund these commitments. These types of liquidity requirement in the CFP. For Reform and Consumer Protection Act amended outflows may include retail funding, section 13(3) of the Federal Reserve Act, 12 U.S.C. example, a $10 billion exposure at a 10 343(3), to allow the Federal Reserve Board, in contractual settlements related to percent factor would add only $1 billion consultation with the Secretary of the Treasury, to derivative transactions, pledging to the discounted outflows, while a 40 establish by regulation, policies and procedures that collateral, or other off-balance sheet percent factor would add $4 billion to would govern emergency lending under a program commitments. or facility for the purpose of providing liquidity to the outflows. the financial system. Under section 13(3) of the FCS banks may also have outstanding Federal Reserve Act, as amended, the Federal lines of credit to retail borrowers who 30 The Tier 1/Tier 2 Capital framework regulation Reserve Board must establish procedures that may draw funds to meet their seasonal, requires that System banks hold capital against this prohibit insolvent and failing entities from business, or liquidity needs. A line of unfunded wholesale commitment due to the risk borrowing under the emergency program or facility. credit may be used as a liquidity facility presented. See § 628.33 and preamble discussion— See Public Law 11–203, title XI, sec. 1101(a), 124 81 FR 49737 (July 28, 2016). Stat. 2113 (Jul. 21, 2010). 31 See 79 FR 61440, 61444 (October 10, 2014). 26 24 To provide liquidity to small business lenders See § 614.4125(d). Examples include those shocks that would result in: and the broader credit markets and to help stabilize 27 Under section 2.2(12) of the Act, direct lender (1) A partial loss of unsecured wholesale funding the financial system, the Federal Reserve Board has associations may borrow money from their affiliated capacity; (2) a partial loss of secured, short-term created the PPP Liquidity Facility using its Farm Credit bank, and with the approval of their financing with certain collateral and counterparties; authority under section 13(3) of the Federal Reserve funding banks, may borrow from and issue notes or (3) losses from derivative positions and the Act. other obligations to any commercial bank or collateral supporting those positions; (4) 25 See FCA’s Supplement to the January 5, 2021, financial institution. unscheduled draws on committed credit and FCA Informational Memorandum: Guidance for 28 OFI means any entity referred to in section liquidity facilities that a covered company has System Institutions Affected by the COVID–19 1.7(b)(1)(B) of the Act. provided to its customers; and (5) other shocks that Pandemic: Regulatory Capital Requirements for PPP 29 See § 614.4540(b) which specifies the criteria affect outflows linked to structured financing Loans. for assured access for certain OFIs. transactions and mortgages.

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To evaluate this further, we are business expenses and accordingly, 5. How should FCA incorporate the seeking comment to determine if we draw from their operating lines. As liquidity risk of VACP accounts at should incorporate unfunded System banks are ultimately responsible associations into the funding banks’ commitments into the existing FCA to fund associations, we are seeking liquidity reserve requirement? liquidity framework and what type of comment to determine if a revised a. What would be an appropriate factor would be appropriate to capture liquidity requirement should ‘‘look- factor to apply to these VACP accounts? the drawdown risks. through’’ System banks to consider each b. If different factors should apply to 1. How should FCA incorporate the association’s unfunded commitment to different types of VACP accounts, please liquidity risk of unfunded commitments retail borrowers as a potential outflow specify. on affiliated associations’ direct notes item. Continuously Redeemable Perpetual into the System banks’ liquidity reserve 4. How should FCA incorporate the Preferred Stock requirement? risk of unfunded commitments from Some System associations have issued a. Should drawdown factors be association retail borrowers for the continuously redeemable perpetual applied to unfunded commitments? funding banks’ liquidity reserve preferred stock (typically called Harvest b. If so, what would be an appropriate requirement? factor to apply to the direct note Stock or H Stock) to their members who a. What would be an appropriate wish to invest and participate in their unfunded commitments? factor for System banks to apply to 2. How should FCA incorporate the cooperative beyond the minimum association unfunded commitments? member-borrower stock purchase. H liquidity risk of unfunded commitments b. Should unfunded commitments at to OFIs into the System banks’ liquidity Stock is an at-risk investment; it is associations that are not issued without a stated maturity and is reserve requirement? unconditionally cancellable be treated a. Should drawdown factors be retireable only at the discretion of the differently from those that are applied to unfunded commitments? institution’s board. A common feature of b. If so, what would be an appropriate unconditionally cancellable? Please H stock is that the issuing association factor to apply to OFI unfunded explain why. will redeem it upon the request of the commitments? c. If so, should we consider applying holder only if the association is in c. Does the liquidity risk of unfunded a different factor to differentiate the risk compliance with its regulatory capital commitments to OFIs pose a different between credit and liquidity facilities requirements. Because of this feature, risk than unfunded commitments to for association retail borrowers? FCA considers the stock to be affiliated associations’ direct notes? If d. Should FCA incorporate the continuously redeemable. Some so, how should FCA incorporate this liquidity risk of unfunded commitments associations reduce the operational risk into the liquidity reserve to association retail borrowers through a hurdles to redeeming H stock by requirement? ‘‘look through’’ approach or using the delegating the board’s authority to retire 3. How should FCA incorporate the direct note unfunded commitment such stock to management provided liquidity risk of unfunded commitments amount? certain board-approved minimum to bank retail borrowers into the System Voluntary Advance Conditional regulatory capital ratios are maintained. banks’ liquidity reserve requirement? Payment Accounts FCA has determined that holders a. What would be an appropriate reasonably expect the institution to factor to apply to retail borrower Section 614.4175 allows member- redeem the stock shortly after they make unfunded commitments? borrowers to make voluntary advance a request. A sudden surge in member- b. Should unfunded commitments to conditional payments (VACP) on their borrower redemptions of H Stock held retail borrowers that are not loans and allows institutions to set up at associations would increase the unconditionally cancellable be treated involuntary payment accounts for funds funding from System bank to its differently from those that are held to be used for insurance premiums, associations. This sudden increase in unconditionally cancellable? Please taxes, and other reasons.32 VACP (where funding may increase demands on the explain why. the advanced payment is not bank’s liquidity at a time when market c. Should we consider applying compulsory) accounts have the potential access is becoming impeded. To different factors to differentiate the risk to expose the System to additional evaluate this further, we are seeking between retail credit and liquidity liquidity risk in a crisis. More comment on how we should mitigate facilities for such retail borrowers? specifically, some VACP accounts may the risk H Stock poses to the liquidity be structured so that System member- Association Lines of Credit to Retail of System banks. borrowers may withdraw funds at their Borrowers 6. How should FCA incorporate the request (although prior notice for liquidity risk of H Stock redemptions at FCS associations often have withdrawals may be required). A associations into the funding banks’ outstanding lines of credit to retail sudden surge in member-borrower liquidity reserve requirement? What borrowers who may draw funds to meet draws from VACP accounts held at would be an appropriate factor to apply their seasonal or other business needs. associations would increase the funding to H Stock? Associations can be legally obligated to required from the bank to the fund these commitments and would association. This sudden increase in Cash Inflows generally rely on their System bank for funding may increase demands on the As discussed above, modifying FCA’s funding under the GFA. A sudden surge bank’s liquidity at a time when market liquidity reserve requirement to capture in borrower demand for funds under access is becoming impeded. To potential cash outflows, including these lines may increase demands on evaluate this further, we are seeking unfunded commitments, may promote a the bank’s liquidity at a time when comment on how we should mitigate stronger liquidity profile at System market access is becoming impeded. the risk VACP accounts pose to the banks. To improve how liquidity is More specifically, during periods of liquidity of System banks. measured and reported, we are also economic or market uncertainty, retail considering incorporating cash inflows borrowers may desire to increase their 32 Sections 1.5(6) and 2.2(13) of the Act authorize into the liquidity reserve requirement. cash holdings to cover operating and institutions to accept advance payments. FCA’s existing liquidity regulation,

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§ 615.5134, does not consider how balance sheet, and the adequacy of its there is the potential that the expected cash inflows would affect the liquidity risk measurement program. supplemental liquidity buffer may bank’s liquidity reserve requirement. System banks provide funding to their include investments that are not Outside of CFP stress analysis affiliated associations through the direct marketable or liquid under certain (discussed below), FCA’s existing note which is a significant portion of the circumstances. To evaluate this further, liquidity framework views the bank’s assets. The bank’s direct note we are seeking comment to determine if discounted market value of assets held assets are impacted by the funding and we should hold investments in the in the liquidity reserve and liquidity demands of their affiliated supplemental liquidity buffer to the supplemental buffer as the only source associations. However, System banks same or similar marketability standards of liquidity during a liquidity event.33 directly control the mix of funding for as assets in the liquidity reserve. However, in a liquidity event, certain these assets, as well as the risk 12. Should FCA apply the criteria for borrowers will still be making payments characteristics of other assets acquired. on their loans, allowing money to flow System banks issue System-wide debt ‘‘marketable’’ investments in into the institution that can be used to securities as the primary source for § 615.5134(d) to assets that FCS banks support ongoing operations. Cash funding loans and investments. As part hold in their supplemental liquidity inflows from sources other than the of the examination process, FCA buffer? If yes, why? If no, what criteria liquidity reserve typically include evaluates how each bank’s debt should FCA adopt to address its payments from wholesale and retail structure helps limit liquidity risks. For concerns about the liquidity and borrowers and coupon and scheduled example, if a bank funds its balance marketability of assets in the principal payments from securities not sheet wholly with short-term debt, the supplemental liquidity buffers of FCS included in the liquidity reserve.34 resulting large amounts of debt maturing banks when access to the markets are The CFP requirement at § 615.5134(f) each week would cause the bank to be becoming impeded, and why? allows System banks to consider inflows vulnerable to market disruptions and Money Market Instruments and when analyzing how much contingent liquidity risk. Therefore, debt maturities Diversified Investment Funds liquidity they must hold under a 30-day should be structured in a manner that acute stress scenario. However, for the they are extended and align with the The existing liquidity framework purposes of the CFP, System banks have tenor and composition of the bank’s allows certain money market considerable discretion to determine the assets. In addition, debt maturities instruments and diversified investment assumptions pertaining to the amount of should ensure longer-term stable funds to be included as Level 1 reserves inflows that will offset potential funding. at § 615.5134(b). The FBRAs decided outflows. To evaluate this further, we FCA’s existing liquidity framework not to include similar instruments in the are seeking comment to determine if we does not directly address the stability of LCR’s HQLA framework, such as mutual should incorporate inflows into the a bank’s balance sheet and does not funds and money market funds.36 The existing FCA liquidity framework. require compliance with specific debt FBRAs stated that certain underlying 7. How should FCA incorporate the structure ratios. To evaluate this further, investments of the investment uncertainty of cash inflows into System we are seeking comment to determine if companies may include high-quality banks’ liquidity reserve requirements? we should add requirements regarding assets, however, similar to securities 8. What would be an appropriate the structure of a bank’s balance sheet issued by many companies in the discount percentage to apply to the into the existing FCA liquidity financial sector, shares of investment different types of inflows (such as framework. companies have been prone to lose payments from wholesale and retail 10. How should FCA amend its borrowers, payments from securities not value and become less liquid during liquidity regulations to strengthen the periods of severe market stress or an included in the liquidity reserve)? stability of the balance sheet structure at 9. What type of operational changes idiosyncratic event involving the fund’s FCS banks? sponsor. Additionally, Securities and (such as data elements, general ledger 11. Under what circumstances might requirements, and systems) would be Exchange Commission (SEC) rules it be appropriate for FCA’s liquidity regarding money market funds may also required to accurately capture inflow framework to better address funding and outflow information to calculate impose some barriers on investors’ methods such as discount notes and ability to withdraw all their funds liquidity ratios on a daily or monthly short funding? basis? during a period of stress.37 Marketability of the Supplemental Stability of a Bank’s Balance Sheet Certain money market instruments Liquidity Buffer exhibited liquidity stress during the The amount of liquid assets that a Currently, investments held in a 2008 financial crisis and the economic bank must maintain is generally a bank’s liquidity reserve must be shock in March 2020 caused by the function of the stability of its funding marketable in accordance with the structure, the risk characteristics of the criteria in § 615.5134(d). However, 36 FCA defined money market instruments to investments held in the supplemental include short-term instruments such as (1) Federal 33 The discounts applied to the assets held for liquidity buffer are not subject to the funds, (2) negotiable certificates of deposit, (3) liquidity in FCA’s regulations approximate the cost bankers’ acceptances, (4) commercial paper, (5) 35 of liquidating investments over a short period of same marketability standard. Thus, non-callable term Federal funds (6) Eurodollar time time during adverse situations. The mechanism of deposits, (7) master notes, and (8) repurchase discounting assets is designed to accurately reflect 35 Assets held in the supplemental liquidity agreements collateralized by eligible investments as true market conditions. For example, FCA buffer are not subject to the marketability standard money market instruments. 83 FR 27486, 27489 regulations assign only a minimal discount to in § 615.5134(d). However, a System bank must be (June 12, 2018). Of the seven items, the FBRAs only investments that are less sensitive to interest rate able to liquidate any qualified eligible investment allow Federal funds to be included in Level 1 fluctuations because they are exposed to less price in its supplemental liquidity buffer within the HQLA. See supra footnote 1. Federal funds risk. Conversely, the discount for long-term fixed liquidity policy timeframe established by the bank’s represent a small amount of the System’s cash and rate instruments is higher because they expose FCS liquidity policy at no less than 80 percent of its liquidity included in Level 1 money market banks to greater market risk. book value. Assets having a market value of less instruments. 34 See FDIC’s Liquidity Risk Management than 80 percent of their book value at any time must 37 See SEC, ‘‘Money Market Fund Reform; Standards. Inflow amounts are defined at 12 CFR be removed from the supplemental buffer. See Amendments to Form PF,’’ 79 FR 47736 (August 14, 329.33. § 615.5134(e). 2014).

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COVID–19 pandemic.38 For example, in diversified investment funds included so, what assets should be limited and March 2020, Commercial paper (CP) and in specific levels in the liquidity reserve what percent should they be allowed to Certificate of deposit (CD) markets both to mitigate concentration risk? Please count towards the reserve requirement? became stressed.39 Under normal explain your reasoning. Liquidity and COVID–19 market conditions, secondary trading FCA’s Liquidity Reserve and High- volume in CP and CD markets is limited FCS banks withstood the recent as most investors purchase and hold Quality Liquid Assets in Liquidity economic and financial turmoil from these short-dated instruments to Coverage Ratio COVID–19 with their liquidity intact. maturity. However, in March 2020, as The FBRAs’ HQLA allowed in the However, both the FCA and FCS some market participants, including LCR differ from liquid assets allowed in continue to gain insights into the effects money market mutual funds and others, FCA’s liquidity regulation. FCA’s that sudden and severe stress have on may have sought secondary trading, regulation allows certain instruments to liquidity at individual FCS institutions they experienced a ‘‘frozen market.’’ For qualify as liquid assets even though they and in the entire financial system. For liquidity purposes, both secondary are excluded from the LCR, such as example, in March of 2020, financial trading and new issuances of CP and CD investment company shares (mutual markets experienced a ‘‘flight to cash’’ halted for a period of time during the funds and money market funds). where demand for cash and the highest pandemic.40 However, the LCR allows certain quality cash like instruments FCA’s existing definition of instruments to be included in HQLA dramatically increased, while demand ‘‘marketable’’ in § 615.5134(d) makes an that are excluded from FCA’s liquidity (and thus prices) for less liquid exception for money market regulation, such as municipal instruments declined.44 System banks instruments. Specifically, obligations and certain corporate are required to adopt a CFP to ensure § 615.5134(d)(4) exempts money market bonds.42 There are also certain sources of liquidity are sufficient to instruments from the requirement that instruments in HQLA that System banks fund normal operations under a variety investments in the liquidity reserve do not have the authority to purchase.43 of stress events.45 Such stress events must be easily bought and sold in active FCA’s regulation also differentiates include, but are not limited to market and sizeable markets without liquid assets by tenor while the LCR disruptions, rapid increase in loan significantly affecting prices. does not. Additionally, the LCR applies demand, unexpected draws on Additionally, money market more substantial discounts or ‘‘haircuts’’ unfunded commitments, difficulties in instruments are not subject to FCA’s to HQLA than FCA’s liquidity renewing or replacing funding with investment portfolio diversification regulation applies to the same assets. desired terms and structures, requirements and are not limited in the The FRBAs also limit certain assets to requirements to pledge collateral with liquidity reserve requirement.41 To a percentage of the total eligible HQLA counterparties, and reduced market evaluate the type of instruments and amount, whereas FCA does not. To access. definitions allowed under the FCA evaluate this further, we are seeking As addressed above, we are reviewing liquidity framework, we are seeking comment to determine if we should our regulatory and supervisory comment to determine if we should consider aligning FCA’s existing approaches towards liquidity so that align the instruments in FCA’s liquidity requirements for liquid assets with the System institutions are in a better reserve requirement with the FBRAs LCR’s HQLA. position to withstand whatever future HQLA framework. 16. Should FCA consider expanding crises may arise. As part of our ongoing 13. Given the risks of money market the instruments eligible under the efforts to limit the adverse effect of instruments and diversified investment liquidity reserve to more closely align rapidly changing economic, financial, funds and that the FBRAs do not with the HQLA framework of the and market conditions on the liquidity consider these instruments to be high FBRAs? If so, which instruments should of any FCS bank, we are seeking quality liquid assets, why should FCA be considered and how would including comment to determine if we should continue to permit these instruments to the instruments add strength to the make updates to our regulations to be included in an FCS bank’s liquidity existing liquidity framework? better prepare for future liquidity crises. reserve? If you believe that we should 17. Should FCA consider reviewing 20. How should FCA further continue to allow money market tenor requirements in its existing incorporate the demand for cash and instruments and diversified investment liquidity regulations? If so, which highly liquid U.S. Treasury securities funds in the liquidity reserve instruments should be considered and during times of crisis into the System requirement, how could FCA mitigate how would the requirements add banks liquidity reserve requirement? the risks they pose? strength to the existing liquidity 21. What type of updates should FCA 14. What factors should FCA consider framework? consider to the CFP requirements in in evaluating the risk of money market 18. Should FCA consider changing § 615.5134(f)? instruments and diversified investment discount values assigned to assets held B. Applicability of the Liquidity funds in the context of the total for liquidity to more closely align with Coverage Ratio and Net Stable Funding liquidity reserve requirement? those applied under the LCR’s HQLA 15. Should FCA consider limiting Ratio framework? money market instruments and 19. Should FCA consider limiting System Banks and the LCR and NSFR certain assets included in the liquidity 38 See 79 FR 61440, 61465 (October 10, 2014) and For the reasons discussed above, the Financial Stability Board’s ‘‘COVID–19 Pandemic: reserve to mitigate concentration risk? If FCA is exploring whether, and to what Financial Stability Impact and Policy Responses; extent, the LCR and NSFR should apply Report submitted to the G20.’’ November 17, 2020. 42 System banks can purchase certain municipal 39 Both CP and CD are included in FCA’s securities and corporate bonds under to System banks now that the FBRAs definition of money market instruments. § 615.5140(a)(1)(ii)(A)—non-convertible senior debt 40 See SEC’s Division of Economic and Risk securities. 44 See Bank for International Settlements Bulletin Analysis ‘‘U.S. Credit Markets Interconnectedness 43 Investments such as publicly traded common No 14 ‘‘US dollar funding markets during the and the Effects of the COVID–19 Economic Shock.’’ equity, certain corporate debt securities, and certain Covid–19 crisis—the money market fund turmoil.’’ October 2020. other securities are included in the LCR but are not May 12, 2020. 41 See § 615.5133(f)(3)(iii). eligible investments under § 615.5140. 45 See § 615.5134(f).

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issued final rules implementing the (financial sector entity or non-financial b. If not, what supports FCA treating Basel III Liquidity Framework in the sector entity). The direct notes from System institutions as non-financial United States. More specifically, we are System banks to System associations sector entities and applying a 10 percent evaluating whether it is feasible to under the GFAs are credit facilities, not factor on the unfunded commitments adjust the LCR and NSFR to the liquidity facilities. Unfunded System banks have to associations? System’s cooperative and non- commitments on a credit facility to a System Bank Member Investment Bonds depository structures and its mission as financial sector entity have a 40 percent a GSE, and we are seeking your input. factor, while the same commitment to a Two System banks offer investment In the alternative, we are considering non-financial sector entity only have a bonds to their member-borrowers and whether to incorporate specific 10 percent factor. Financial sector other specified individuals, such as elements of the LCR and NSFR into our entities typically have shorter-term bank employees (Member Investment liquidity regulation, and we are funding structures and higher Bonds). Both programs are similar in interested in your ideas about how to do correlations of drawing down that each bank offers overnight or short- so. commitments during times of stress term, uninsured bonds to the bank’s 22. What core principles would be which support a higher factor when members and other specified most important in FCA’s consideration compared to non-financial sector individuals. Member Investment Bonds of the Basel III Liquidity Framework? entities.47 A higher factor results in a are structured so that holders may How relevant is the Basel III Liquidity higher liquidity requirement under the redeem funds at their request (although Framework to the cooperative and non- LCR. prior notice for withdrawals may be required). Given their short maturity, a depository structure of the FCS? The FBRAs’ LCR regulation defines a holder’s investment may be 23. To what extent should FCA financial sector entity to include a continuously rolled over until they propose a similar rule to the FBRA’s regulated financial company, but provide notice to redeem the LCR and NSFR? specifically excludes GSEs. The FCS is investment, which may be at any time. a. Should FCA completely replace its a cooperative system of financial Member Investment Bonds present a existing liquidity regulations with an institutions that the FCA charters and liquidity demand similar to maturing LCR and NSFR framework or only regulates in accordance with the Act. System bonds. Accordingly, FCA treats augment existing regulations with System associations lend directly to and Member Investment Bonds and certain elements of the LCR and NSFR provide certain financially-related maturing System bonds the same under framework? If so, please explain. services to eligible borrowers. The the existing liquidity rules. Under the b. What specific modifications, if any, System’s lending activities to retail LCR, there are several different outflow should FCA consider making to the LCR borrowers, and its structure are different categories that Member Investment and NSFR ratios for application to than the activities and structure of other Bonds could fall into. To evaluate this System banks, and why? GSEs excluded from the FBRAs’ further, we are seeking comment to c. If FCA proposed to incorporate the definition of a financial sector entity.48 determine if we propose an LCR, what LCR and NSFR ratios as part of the CFP Unlike the other GSEs, most FCS the most appropriate factor for these requirement in § 615.5134(f), what types institutions lend directly to retail investment bonds would be. of modifications would be necessary to borrowers in a manner that is 27. If FCA proposes an LCR, what include elements of the ratios, without substantially similar to lenders that the would be an appropriate factor to apply being redundant or overly burdensome? FBRAs define as financial sector to the Member Investment Bonds and 24. If the FCA closely aligned the LCR entities. To evaluate this further, we are why? and NSFR to the FBRA’s regulations, seeking comment to determine if we and made only narrow modification to propose an LCR, should FCA treat Voluntary Advance Conditional accommodate the System’s unique System institutions as financial sector Payment Accounts structure, would the results enable FCS entities and apply the relevant factor As discussed above, FCA regulation banks to better withstand liquidity under the FBRAs’ definition. § 614.4175 allows member-borrowers to crises, or in the alternative, prove too 26. If FCA proposes an LCR, should make VACP on their loans and allows costly or burdensome? Please explain. FCA treat System institutions as institutions to set up involuntary 25. How would the implementation of financial sector entities and apply a 40 payment accounts for funds held to be an LCR and NSFR impact the System’s percent factor to the unfunded portion used for insurance premiums, taxes, and funding structure, lending activities, or of the associations’ direct note other reasons. A sudden surge in use of discount notes? commitments? member-borrower draws from VACP Outflows to Credit Facilities a. If so, what supports FCA treating accounts held at associations would System institutions as financial sector increase the funding required from the The LCR requires covered institutions entities and applying a 40 percent factor System bank to the affiliated association to hold liquidity against the undrawn on the unfunded commitments System at a time when market access is amount of a committed credit facility to banks have to associations? becoming impeded. To evaluate this a borrower. The outflow factor applied further, we are seeking comment to to this undrawn amount depends on the source of funding. If a facility has characteristics of determine if we propose an LCR, what type of credit facility (credit or liquidity both credit and liquidity facilities, the facility must the most appropriate factor for these facility) 46 and the type of borrower be classified as a liquidity facility. VACP accounts would be. 47 See 79 FR 61440, 61485 (October 10, 2014). 28. If FCA proposes an LCR, given the 46 Credit and liquidity facility are defined at 12 48 Other GSEs currently include the Federal Home CFR 329.3. A credit facility is a legally binding Loan Mortgage Corporation, the Federal National uniqueness of VACP accounts and the agreement to extend funds at a future date and Mortgage Association, and the Federal Home Loan ability of member-borrowers to generally includes working capital facilities (e.g., Bank System. As noted in footnote 3, supra, Farmer withdraw certain VACP account funds revolving line of credit used for general corporate Mac is a GSE that has a charter to operate a at their request, what would be an or working capital purposes). A liquidity facility is secondary market for certain types of loans a legally binding agreement to extend funds for originated by retail lenders. Farmer Mac is not a appropriate factor? purposes of refinancing the debt of a counterparty cooperative. Instead, it is a stockholder-owned, 29. If different factors should apply to when it is unable to obtain a primary or anticipated federally chartered corporation. different VACP accounts, please specify.

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High Quality Liquid Assets in LCR structure to meet an NSFR by DEPARTMENT OF TRANSPORTATION As discussed above, the FBRAs’ incorporating more long-term debt Federal Aviation Administration HQLA allowed in the LCR differ from issuances. To evaluate this further, we liquid assets allowed in FCA’s liquidity are seeking comment to determine if the 14 CFR Part 39 regulation. To evaluate this further, we NSFR is applicable to the System’s are seeking comment to determine if we funding structure, authorities, and mission. [Docket No. FAA–2021–0504; Project propose an LCR, should FCA consider Identifier AD–2020–01380–T] aligning FCA’s liquid assets with the 31. What core principles would be LCR’s HQLA. most important in FCA’s consideration RIN 2120–AA64 30. If FCA proposes an LCR, should of the NSFR? How does the cooperative we replace the current list of eligible and non-depository structure of the Airworthiness Directives; The Boeing instruments for the liquidity reserve System relate to the NSFR? Company Airplanes 32. How could NSFR metrics replace with a list that is more closely aligned AGENCY: any existing regulations, to ensure Federal Aviation to the FBRA’s HQLA instrument list Administration (FAA), DOT. (excluding common equities)? Please System banks have sufficiently stable ACTION: Notice of proposed rulemaking explain. liabilities (and regulatory capital) to (NPRM). a. Should FCA’s liquidity regulation support their assets and commitments over a one-year time horizon? continue to allow FCS banks to hold in SUMMARY: The FAA proposes to 33. Is it beneficial or detrimental to their liquidity reserve instruments that supersede Airworthiness Directive (AD) replace existing regulations with NSFR are currently excluded from the FBRA’s 2019–03–26, which applies to certain metrics and why? HLQA list? Which instruments and The Boeing Company Model 737–600, why? Other Considerations –700, –700C, –800, –900, and –900ER b. Should FCA allow FCS banks to series airplanes. AD 2019–03–26 The BCBS developed the Basel NSFR hold in their liquidity reserves requires modifying the passenger standard as a longer-term balance sheet instruments that are included in the service units (PSUs) and life vest panels funding metric to complement the Basel FBRAs HLQA list, but are currently by replacing the existing inboard LCR standard’s short-term liquidity excluded from FCA’s liquidity lanyard and installing two new lanyards stress metric. In developing the Basel regulation? Which instruments and on the outboard edge of the PSUs and NSFR standard, the FBRAs and their why? life vest panels; measuring the distance international counterparts in the BCBS between the hooks of the torsion spring Net Stable Funding Ratio Applicability considered a number of possible of the lanyard assembly; replacing funding metrics.49 The Basel guidance The BCBS introduced the NSFR to discrepant lanyard assemblies; and re- and FBRA’s NSFR regulation require banks to maintain a stable identifying serviceable lanyard incorporated consideration of these and funding profile to reduce the likelihood assemblies. Since the FAA issued AD other funding risks.50 that disruptions in a bank’s regular 2019–03–26, it has been determined that sources of funding will erode its 34. What other approaches or certain airplanes are listed in the wrong liquidity position that may increase its methodologies to measuring and configuration and certain PSUs have not risk of failure. Furthermore, during regulating liquidity not discussed above been correctly re-identified. This periods of financial stress, financial should FCA consider and why? proposed AD would retain the institutions without stable funding C. Other Comments Requested requirements of AD 2019–03–26, and, sources may be forced to monetize for certain airplanes, would require an We welcome comments on every assets in order to meet their obligations, inspection to determine if the re- aspect of this advance notice of which may drive down asset prices and identified PSU part number is correct, proposed rulemaking. We encourage compound liquidity issues. The NSFR and further re-identification if any interested person(s) to identify and implements a standardized quantitative necessary. The FAA is proposing this raise issues pertaining to other aspects metric designed to limit maturity AD to address the unsafe condition on of the liquidity framework for FCS mismatches and applies favorable these products. factors to a commercial bank’s primary banks and associations that we did not funding source—deposits. The NSFR address in this ANPRM. Please DATES: The FAA must receive comments requires a bank to maintain an amount designate such comments as ‘‘Other on this proposed AD by August 16, of available stable funding (ASF) that is Relevant Issues.’’ 2021. not less than the amount of its required * * * * * ADDRESSES: You may send comments, stable funding (RSF) on an ongoing Dated: June 10, 2021. using the procedures found in 14 CFR basis. ASF and RSF are calculated based 11.43 and 11.45, by any of the following Dale Aultman, on the liquidity characteristics of a methods: bank’s assets, derivative exposures, Secretary, Farm Credit Administration Board. • Federal eRulemaking Portal: Go to commitments, liabilities, and equity [FR Doc. 2021–13556 Filed 6–29–21; 8:45 am] https://www.regulations.gov. Follow the over a one-year time horizon. BILLING CODE 6705–01–P instructions for submitting comments. The NSFR and its corresponding • Fax: 202–493–2251. factors adopted by the FBRAs were 49 For example, the BCBS considered the • Mail: U.S. Department of established to measure and maintain the traditional ‘‘cash capital’’ measure, which compares Transportation, Docket Operations, the amount of a firm’s long-term and stable sources stability of the funding profiles of of funding to the amount of the firm’s illiquid M–30, West Building Ground Floor, banking organizations that rely assets. The BCBS found that this cash capital Room W12–140, 1200 New Jersey primarily on deposits. In contrast, FCS measure failed to account for material funding risks, Avenue SE, Washington, DC 20590. banks issue System-wide debt securities such as those related to off-balance sheet • Hand Delivery: Deliver to Mail commitments and certain on-balance sheet short- as the primary source for funding its term funding and lending mismatches. address above between 9 a.m. and 5 operations. The System would 50 See 86 FR 9120 (February 11, 2021). See supra p.m., Monday through Friday, except potentially need to modify its funding footnote 19. Federal holidays.

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For service information identified in Confidential Business Information service information had missing or this NPRM, contact Boeing Commercial CBI is commercial or financial incorrect re-identification part numbers Airplanes, Attention: Contractual & Data information that is both customarily and for those PSUs that were modified using Services (C&DS), 2600 Westminster actually treated as private by its owner. Boeing Service Bulletin 737–35–1107. Blvd., MC 110–SK57, Seal Beach, CA Under the Freedom of Information Act The FAA determined that the new requirements in this proposed AD 90740–5600; telephone 562–797–1717; (FOIA) (5 U.S.C. 552), CBI is exempt would take a minimal amount of time to internet https:// from public disclosure. If your accomplish. Therefore, the proposed www.myboeingfleet.com. You may view comments responsive to this NPRM compliance time would remain the this service information at the FAA, contain commercial or financial same as the time required by AD 2019– Airworthiness Products Section, information that is customarily treated 03–26 (within 60 months after April 8, Operational Safety Branch, 2200 South as private, that you actually treat as 2019 (the effective date of AD 2019–03– 216th St., Des Moines, WA. For private, and that is relevant or 26)). information on the availability of this responsive to this NPRM, it is important material at the FAA, call 206–231–3195. that you clearly designate the submitted FAA’s Determination It is also available at https:// comments as CBI. Please mark each www.regulations.gov by searching for The FAA is issuing this NPRM after page of your submission containing CBI determining that the unsafe condition and locating Docket No. FAA–2021– as ‘‘PROPIN.’’ The FAA will treat such 0504. described previously is likely to exist or marked submissions as confidential develop on other products of the same Examining the AD Docket under the FOIA, and they will not be type design. placed in the public docket of this You may examine the AD docket at NPRM. Submissions containing CBI Related Service Information Under 1 https://www.regulations.gov by should be sent to Tony Koung, CFR Part 51 searching for and locating Docket No. Aerospace Engineer, Cabin Safety and The FAA reviewed Boeing Special FAA–2021–0504; or in person at Docket Environmental Systems Section, FAA, Attention Service Bulletin 737–25– Operations between 9 a.m. and 5 p.m., Seattle ACO Branch, 2200 South 216th 1707, Revision 2, dated July 27, 2020. Monday through Friday, except Federal St., Des Moines, WA 98198; phone and This service information specifies holidays. The AD docket contains this fax: 206–231–3985; email: tony.koung@ procedures for modifying the PSUs and NPRM, any comments received, and faa.gov. Any commentary that the FAA life vest panels by: Replacing the other information. The street address for receives which is not specifically existing inboard lanyard and installing Docket Operations is listed above. designated as CBI will be placed in the two new lanyards on the outboard edge FOR FURTHER INFORMATION CONTACT: public docket for this rulemaking. of the PSUs and life vest panels (secondary retention features); Tony Koung, Aerospace Engineer, Cabin Background Safety and Environmental Systems measuring the distance between the Section, FAA, Seattle ACO Branch, 2200 The FAA issued AD 2019–03–26, hooks of the torsion spring of the South 216th St., Des Moines, WA 98198; Amendment 39–19578 (84 FR 7266, lanyard assembly; replacing any phone and fax: 206–231–3985; email: March 4, 2019) (AD 2019–03–26), for discrepant lanyard assemblies; and re- [email protected]. certain The Boeing Company Model identifying serviceable lanyard 737–600, –700, –700C, –800, –900, and assemblies. For some airplanes, the SUPPLEMENTARY INFORMATION: –900ER series airplanes. AD 2019–03– service information specifies procedures Comments Invited 26 was prompted by reports of PSUs for inspecting PSUs for correct re- becoming detached from the supporting identification part numbers and, if The FAA invites you to send any airplane structure in several Model 737 necessary, re-identifying the PSU. This written relevant data, views, or series airplanes. AD 2019–03–26 service information is reasonably arguments about this proposal. Send requires modifying the PSUs and life available because the interested parties your comments to an address listed vest panels by replacing the existing have access to it through their normal under ADDRESSES. Include ‘‘Docket No. inboard lanyard and installing two new course of business or by the means FAA–2021–0504; Project Identifier AD– lanyards on the outboard edge of the identified in the ADDRESSES section. 2020–01380–T’’ at the beginning of your PSUs and life vest panels; measuring the comments. The most helpful comments distance between the hooks of the Proposed AD Requirements in This reference a specific portion of the torsion spring of the lanyard assembly; NPRM proposal, explain the reason for any replacing discrepant lanyard assemblies; Although this proposed AD does not recommended change, and include and re-identifying serviceable lanyard explicitly restate the requirements of AD supporting data. The FAA will consider assemblies. The agency issued AD 2019–03–26, this proposed AD would all comments received by the closing 2019–03–26 to address PSUs and life retain all of the requirements of AD date and may amend the proposal vest panels detaching from the 2019–03–26. Those requirements are because of those comments. supporting airplane structure, which referenced in the service information Except for Confidential Business could lead to passenger injuries and identified previously, which, in turn, is Information (CBI) as described in the impede passenger and crew egress referenced in paragraph (g) of this following paragraph, and other during evacuation. proposed AD. This proposed AD would information as described in 14 CFR add additional actions for certain 11.35, the FAA will post all comments Actions Since AD 2019–03–26 Was airplanes. This proposed AD would also received, without change, to https:// Issued require accomplishment of the actions www.regulations.gov, including any Since the FAA issued AD 2019–03– identified as ‘‘RC’’ (required for personal information you provide. The 26, Boeing found that, in the service compliance) in the Accomplishment agency will also post a report information required by AD 2019–03– Instructions of Boeing Special Attention summarizing each substantive verbal 26, some airplanes were not assigned to Service Bulletin 737–25–1707, Revision contact received about this proposed the correct group and configuration. In 2, dated July 27, 2020, described AD. addition, Boeing determined that the previously, except as discussed under

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‘‘Differences Between the Proposed AD 1707, Revision 2, dated July 27, 2020, is could later be installed on airplanes that and the Service Information.’’ limited to Model 737–600, –700, –700C, were initially delivered with acceptable For information on the procedures –800, –900, and –900ER series lanyard assemblies, thereby subjecting and compliance times, see this service airplanes, having certain line numbers, those airplanes to the unsafe condition. information at https:// without a Boeing Sky Interior (BSI). Costs of Compliance www.regulations.gov by searching for However, the applicability of this and locating Docket No. FAA–2021– proposed AD includes all Boeing Model The FAA estimates that this AD, if 0504. 737–600, –700, –700C, –800, –900, and adopted as proposed, would affect 2,045 Differences Between This Proposed AD –900ER series airplanes without a BSI. airplanes of U.S. registry. The FAA and the Service Information Because the affected lanyard assemblies estimates the following costs to comply The effectivity of Boeing Special are rotable parts, the FAA has with this proposed AD: Attention Service Bulletin 737–25– determined that these affected parts

ESTIMATED COSTS

Cost on U.S. Action Labor cost Parts cost Cost per product operators

Measurement and modification (re- Up to 70 work-hour × $85 per hour = Up to $13,000 ...... Up to $18,950 ...... Up to $38,752,750. tained actions from AD 2019–03–26). Up to $5,950. Inspection of re-identified parts (per 1 work-hour × $85 per hour = $85 ...... $0 ...... $85 ...... $173,825. PSU) (new proposed actions).

The FAA estimates the following required based on the results of the aircraft that might need these costs to do any necessary replacements proposed inspection. The FAA has no replacements or re-identifications: or re-identifications that would be way of determining the number of

ON-CONDITION COSTS

Cost per Action Labor cost Parts cost product

Replacement or re-identification (per PSU or life vest Up to 2 work-hour × $85 per hour = Up to $170 ...... Up to $196 ..... Up to $366. panel).

The FAA has included all known Regulatory Findings the FAA proposes to amend 14 CFR part costs in its cost estimate. According to 39 as follows: The FAA has determined that this the manufacturer, however, some of the proposed AD would not have federalism costs of this proposed AD may be PART 39—AIRWORTHINESS implications under Executive Order covered under warranty, thereby DIRECTIVES 13132. This proposed AD would not reducing the cost impact on affected have a substantial direct effect on the ■ operators. 1. The authority citation for part 39 States, on the relationship between the continues to read as follows: Authority for This Rulemaking national Government and the States, or Authority: 49 U.S.C. 106(g), 40113, 44701. Title 49 of the United States Code on the distribution of power and specifies the FAA’s authority to issue responsibilities among the various § 39.13 [Amended] rules on aviation safety. Subtitle I, levels of government. ■ 2. The FAA amends § 39.13 by: Section 106, describes the authority of For the reasons discussed above, I ■ a. Removing Airworthiness Directive the FAA Administrator. Subtitle VII, certify that the proposed regulation: (AD) 2019–03–26, Amendment 39– Aviation Programs, describes in more (1) Is not a ‘‘significant regulatory 19578 (84 FR 7266, March 4, 2019), and detail the scope of the Agency’s action’’ under Executive Order 12866, ■ b. Adding the following new AD: authority. (2) Would not affect intrastate The Boeing Company: Docket No. FAA– The FAA is issuing this rulemaking aviation in Alaska, and 2021–0504; Project Identifier AD–2020– under the authority described in (3) Would not have a significant 01380–T. Subtitle VII, Part A, Subpart III, Section economic impact, positive or negative, (a) Comments Due Date 44701, General requirements. Under on a substantial number of small entities The FAA must receive comments on this that section, Congress charges the FAA under the criteria of the Regulatory airworthiness directive (AD) action by with promoting safe flight of civil Flexibility Act. August 16, 2021. aircraft in air commerce by prescribing List of Subjects in 14 CFR Part 39 regulations for practices, methods, and (b) Affected ADs procedures the Administrator finds Air transportation, Aircraft, Aviation This AD replaces AD 2019–03–26, necessary for safety in air commerce. safety, Incorporation by reference, Amendment 39–19578 (84 FR 7266, March 4, This regulation is within the scope of Safety. 2019) (AD 2019–03–26). that authority because it addresses an (c) Applicability The Proposed Amendment unsafe condition that is likely to exist or This AD applies to The Boeing Company develop on products identified in this Accordingly, under the authority Model 737–600, –700, –700C, –800, –900, rulemaking action. delegated to me by the Administrator, and –900ER series airplanes, certificated in

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any category, without a Boeing Sky Interior those findings. To be approved, the repair maintenance program documentation to (BSI). method, modification deviation, or alteration verify certain lubrication tasks are deviation must meet the certification basis of (d) Subject incorporated, doing repetitive the airplane, and the approval must inspections of the MLG inner cylinder Air Transport Association (ATA) of specifically refer to this AD. America Code 25, Equipment/furnishings. (4) AMOCs approved for AD 2019–03–26 pivot pins and inner cylinder bushings of the MLG truck beam and inner (e) Unsafe Condition are approved as AMOCs for the corresponding provisions of Boeing Special cylinder joint for any friction, heat This AD was prompted by reports of Attention Service Bulletin 737–25–1707, damage, excessive wear, cracking and passenger service units (PSUs) becoming Revision 2, dated July 27, 2020, that are smearing of bushing material, and detached from the supporting airplane required by paragraph (g) of this AD. applicable on-condition actions. The structure in several Model 737 series airplanes during survivable accidents. The (j) Related Information FAA is proposing this AD to address the unsafe condition on these products. FAA is issuing this AD to address PSUs and (1) For more information about this AD, life vest panels detaching from the contact Tony Koung, Aerospace Engineer, DATES: The FAA must receive comments supporting airplane structure, which could Cabin Safety and Environmental Systems on this proposed AD by August 16, lead to passenger injuries and impede Section, FAA, Seattle ACO Branch, 2200 2021. passenger and crew egress during evacuation. South 216th St., Des Moines, WA 98198; ADDRESSES: You may send comments, (f) Compliance phone and fax: 206–231–3985; email: [email protected]. using the procedures found in 14 CFR Comply with this AD within the (2) For service information identified in 11.43 and 11.45, by any of the following compliance times specified, unless already this AD, contact Boeing Commercial methods: done. Airplanes, Attention: Contractual & Data • Federal eRulemaking Portal: Go to (g) Required Actions Services (C&DS), 2600 Westminster Blvd., https://www.regulations.gov. Follow the MC 110–SK57, Seal Beach, CA 90740–5600; Within 60 months after April 8, 2019 (the instructions for submitting comments. telephone 562–797–1717; internet https:// effective date of AD 2019–03–26), do all • Fax: 202–493–2251. applicable actions identified as ‘‘RC’’ www.myboeingfleet.com. You may view this referenced service information at the FAA, • Mail: U.S. Department of (required for compliance) in, and in Transportation, Docket Operations, accordance with, the Accomplishment Airworthiness Products Section, Operational Instructions of Boeing Special Attention Safety Branch, 2200 South 216th St., Des M–30, West Building Ground Floor, Service Bulletin 737–25–1707, Revision 2, Moines, WA. For information on the Room W12–140, 1200 New Jersey dated July 27, 2020. availability of this material at the FAA, call Avenue SE, Washington, DC 20590. 206–231–3195. • Hand Delivery: Deliver to Mail (h) Parts Installation Prohibition Issued on June 14, 2021. address above between 9 a.m. and 5 As of the applicable time specified in Lance T. Gant, p.m., Monday through Friday, except paragraph (h)(1) or (h)(2) of this AD, no person may install on any airplane a PSU or Director, Compliance & Airworthiness Federal holidays. life vest panel, unless the lanyard assembly Division, Aircraft Certification Service. For service information identified in has been modified (secondary retention [FR Doc. 2021–13931 Filed 6–29–21; 8:45 am] this NPRM, contact Boeing Commercial features added) or re-identified, as BILLING CODE 4910–13–P Airplanes, Attention: Contractual & Data applicable, as required by paragraph (g) of Services (C&DS), 2600 Westminster this AD. Blvd., MC 110–SK57, Seal Beach, CA (1) For airplanes that have PSUs or life vest DEPARTMENT OF TRANSPORTATION 90740–5600; telephone 562–797–1717; panels without the secondary retention internet https:// features installed: After modification or re- Federal Aviation Administration identification, as applicable, of the airplane www.myboeingfleet.com. You may view as required by paragraph (g) of this AD. this referenced service information at (2) For airplanes that have PSUs or life vest 14 CFR Part 39 the FAA, Airworthiness Products panels with the secondary retention features [Docket No. FAA–2021–0457; Project Section, Operational Safety Branch, installed: As of the effective date of this AD. Identifier AD–2020–01461–T] 2200 South 216th St., Des Moines, WA. (i) Alternative Methods of Compliance For information on the availability of (AMOCs) RIN 2120–AA64 this material at the FAA, call 206–231– (1) The Manager, Seattle ACO Branch, 3195. It is also available on the internet Airworthiness Directives; The Boeing at https://www.regulations.gov by FAA, has the authority to approve AMOCs Company Airplanes for this AD, if requested using the procedures searching for and locating Docket No. found in 14 CFR 39.19. In accordance with AGENCY: Federal Aviation FAA–2021–0457. 14 CFR 39.19, send your request to your Administration (FAA), DOT. principal inspector or responsible Flight Examining the AD Docket ACTION: Notice of proposed rulemaking Standards Office, as appropriate. If sending You may examine the AD docket at (NPRM). information directly to the manager of the https://www.regulations.gov by certification office, send it to the attention of SUMMARY: The FAA proposes to adopt a searching for and locating Docket No. the person identified in Related Information. FAA–2021–0457; or in person at Docket Information may be emailed to: 9-ANM- new airworthiness directive (AD) for [email protected]. certain The Boeing Company Model Operations between 9 a.m. and 5 p.m., (2) Before using any approved AMOC, 787–8, 787–9, and 787–10 airplanes. Monday through Friday, except Federal notify your appropriate principal inspector, This proposed AD was prompted by a holidays. The AD docket contains this or lacking a principal inspector, the manager report that during a fleet sampling NPRM, any comments received, and of the responsible Flight Standards Office. inspection, cracks were found on the other information. The street address for (3) An AMOC that provides an acceptable inner cylinder pivot pins of the left and Docket Operations is listed above. level of safety may be used for any repair, modification, or alteration required by this right main landing gear (MLG) on one of FOR FURTHER INFORMATION CONTACT: AD if it is approved by The Boeing Company the airplanes. This proposed AD would Allen Rauschendorfer, Senior Aerospace Organization Designation Authorization require repetitive lubrications of the left Engineer, Airframe Section, FAA, (ODA) that has been authorized by the and right MLG truck beam and inner Seattle ACO Branch, 2200 South 216th Manager, Seattle ACO Branch, FAA, to make cylinder pivot joint, reviewing the St., Des Moines, WA 98198; phone and

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fax: 206–231–3528; email: right MLG on one of the airplanes. The and incorporation of the lubrications [email protected]. pins exhibited cracking of the high tasks into the maintenance program. SUPPLEMENTARY INFORMATION: velocity oxygen fuel (HVOF) tungsten The FAA also reviewed Boeing 787 carbide-cobalt-chrome coating. Removal Comments Invited Certification Maintenance Requirements of the outer diameter coating disclosed (CMRs), D011Z009–03–03, dated June The FAA invites you to send any cracking of the custom 465 CRES 2020. This service information specifies written relevant data, views, or substrate. The cause of the cracking was procedures for, among other actions, for arguments about this proposal. Send determined to be heat damage due to in- CMR item number 32–CMR–01, to your comments to an address listed service friction. This condition, if not lubricate the main landing gear truck under ADDRESSES. Include ‘‘Docket No. addressed, could result in a fractured beam pivot joint. FAA–2021–0457; Project Identifier AD– pivot pin, which could lead to loss of all 2020–01461–T’’ at the beginning of your or part of the pivot pin assembly, and This service information is reasonably comments. The most helpful comments subsequent collapse of the MLG and available because the interested parties reference a specific portion of the reduced controllability of the airplane have access to it through their normal proposal, explain the reason for any during takeoff and landing. course of business or by the means recommended change, and include identified in ADDRESSES. supporting data. The FAA will consider FAA’s Determination all comments received by the closing Proposed AD Requirements in This The FAA is issuing this NPRM after NPRM date and may amend this proposal determining that the unsafe condition because of those comments. described previously is likely to exist or This proposed AD would require Except for Confidential Business develop on other products of the same accomplishing the actions specified in Information (CBI) as described in the type design. the service information already following paragraph, and other described except for any differences information as described in 14 CFR Related Service Information Under 1 identified as exceptions in the 11.35, the FAA will post all comments CFR Part 51 regulatory text of this proposed AD. For received, without change, to https:// The FAA reviewed Boeing Alert information on the procedures and www.regulations.gov, including any Requirements Bulletin B787–81205– compliance times, see this service personal information you provide. The SB320045–00 RB, Issue 001, dated agency will also post a report information at https:// November 9, 2020. This service www.regulations.gov by searching for summarizing each substantive verbal information specifies procedures for contact received about this NPRM. and locating Docket No. FAA–2021– repetitive lubrication of the left and 0457. Confidential Business Information right MLG truck beam and inner Boeing Alert Requirements Bulletin cylinder pivot joint with MIL–PRF– CBI is commercial or financial B787–81205–SB320045–00 RB, Issue information that is both customarily and 32014 grease, reviewing the maintenance program documentation to 001, dated November 9, 2020, specifies actually treated as private by its owner. updating the maintenance program to Under the Freedom of Information Act verify that it includes lubrication tasks for the left and right MLG truck beam incorporate lubrication tasks for the left (FOIA) (5 U.S.C. 552), CBI is exempt and right MLG truck beam and inner from public disclosure. If your and inner cylinder pivot joint with MIL–PRF–32014 grease, repetitive cylinder pivot joint with MIL–PRF– comments responsive to this NPRM 32014 grease. Operators have different contain commercial or financial detailed and fluorescent penetrant inspections (FPI) of the left and right methods of updating the maintenance information that is customarily treated program. If operators want to terminate as private, that you actually treat as MLG pivot pin outer diameter (OD) surface for any friction and heat the repetitive lubrications required by private, and that is relevant or paragraph (g) of this AD, only revising responsive to this NPRM, it is important damage, repetitive detailed inspections of the left and right MLG inner cylinder the maintenance or inspection program, that you clearly designate the submitted as applicable, to incorporate CMR item comments as CBI. Please mark each bushing inner diameter (ID) surface for any excessive wear, cracking and number 32–CMR–01 of Section G, page of your submission containing CBI ‘‘Certification Maintenance Requirement as ‘‘PROPIN.’’ The FAA will treat such smearing of bushing material, and applicable on-condition actions. Task,’’ of Boeing 787 Certification marked submissions as confidential Maintenance Requirements (CMRs), under the FOIA, and they will not be On-condition actions include updating the maintenance program to D011Z009–03–03, dated June 2020, is placed in the public docket of this terminating action. NPRM. Submissions containing CBI incorporate lubrication tasks for the left should be sent to Allen Rauschendorfer, and right MLG truck beam and inner This proposed AD includes an Senior Aerospace Engineer, Airframe cylinder pivot joint with MIL–PRF– optional action that would include Section, FAA, Seattle ACO Branch, 2200 32014 grease, detailed and FPI revisions to certain operator South 216th St., Des Moines, WA 98198; inspections on the inner cylinder lug maintenance documents to include new phone and fax: 206–231–3528; email: bore for any heat and friction damage, actions (e.g., inspections). Compliance [email protected]. Any installing a new pivot pin, applying with these actions is required by 14 CFR commentary that the FAA receives lubrication using MIL–PRF–32014 91.403(c). For airplanes that have been which is not specifically designated as grease and making sure lubrication previously modified, altered, or repaired CBI will be placed in the public docket passages are clear, installing new in the areas addressed by this proposed for this rulemaking. aluminum-nickel-bronze inner cylinder AD, the operator may not be able to bushings, installing new copper-nickel- accomplish the actions described in the Background tin inner cylinder bushings, and repair. revisions. In this situation, to comply The FAA has received a report The service information also specifies with 14 CFR 91.403(c), the operator indicating that during a fleet sampling terminating actions for the repetitive must request approval for an alternative inspection, cracks were found on the inspections. The terminating actions method of compliance according to inner cylinder pivot pins of the left and include the installation of certain parts paragraph (l) of this proposed AD.

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Explanation of Requirements Bulletin In an effort to further improve the in a Boeing Requirements Bulletin, The FAA worked in conjunction with quality of ADs and AD-related Boeing which contains only the actions needed industry, under the Airworthiness service information, a joint process to address the unsafe condition (i.e., Directive Implementation Aviation improvement initiative was worked only the RC actions). Rulemaking Committee (AD ARC), to between the FAA and Boeing. The Costs of Compliance enhance the AD system. One initiative resulted in the development of enhancement is a process for annotating a new process in which the service The FAA estimates that this AD, if which steps in the service information information more clearly identifies the adopted as proposed, would affect 131 are ‘‘required for compliance’’ (RC) with actions needed to address the unsafe airplanes of U.S. registry. The FAA an AD. Boeing has implemented this RC condition in the ‘‘Accomplishment estimates the following costs to comply concept into Boeing service bulletins. Instructions.’’ The new process results with this proposed AD:

ESTIMATED COSTS

Cost per Action Labor cost Parts cost product Cost on U.S. operators

Repetitive lubrications ...... 1 work-hour × $85 per hour = $0 $85 per lubrication cycle ...... $11,135 per lubrication cycle. $85 per lubrication cycle. Verification of lubrication 1 work-hour × $85 per hour = 0 $85 ...... $11,135. tasks. $85. Repetitive inspections ...... 40 work-hours × $85 per hour 0 $3,400 per inspection cycle ... $445,400 per inspection = $3,400 per inspection cycle. cycle.

The FAA estimates the following the results of the proposed inspection. the number of aircraft that might need costs to do any necessary on-condition The agency has no way of determining these on-condition actions: actions that would be required based on

ON-CONDITION COSTS

Cost per Action Labor cost Parts cost product

Installation of new pivot pin ...... 8 work-hours × $85 per hour = $680 ...... $97,517 per pivot pin component assem- $98,197 bly. Installation of new bushings ...... 1 work-hour × $85 per hour = $85 ...... $5,968 per bushing ...... 6,053 Lubrication and making sure lubrication 1 work-hour × $85 per hour = $85 ...... $0 ...... 85 passages are clear. Detailed and FPI inspections on the 2 work-hour × $85 per hour = $170 ...... $0 ...... 170 inner cylinder lug bore. Update lubrication tasks (except for CMR 1 work-hour × $85 per hour = $85 ...... $0 ...... 85 item number 32–CMR–01 incorporation).

The FAA has received no definitive $7,650 (90 work-hours × $85 per work- that section, Congress charges the FAA data on which to base the cost estimates hour). with promoting safe flight of civil for the on-condition repairs specified in The FAA has included all known aircraft in air commerce by prescribing this proposed AD. costs in its cost estimate. According to regulations for practices, methods, and For the optional action to revise the the manufacturer, however, some or all procedures the Administrator finds maintenance or inspection program by of the costs of this proposed AD may be necessary for safety in air commerce. incorporating CMR item number 32– covered under warranty, thereby This regulation is within the scope of CMR–01, as applicable, the FAA has reducing the cost impact on affected that authority because it addresses an determined that revising the existing operators. unsafe condition that is likely to exist or develop on products identified in this maintenance or inspection program Authority for This Rulemaking takes an average of 90 work-hours per rulemaking action. operator, although the agency Title 49 of the United States Code Regulatory Findings recognizes that this number may vary specifies the FAA’s authority to issue from operator to operator. In the past, rules on aviation safety. Subtitle I, The FAA determined that this the FAA has estimated that this action section 106, describes the authority of proposed AD would not have federalism takes 1 work-hour per airplane. Since the FAA Administrator. Subtitle VII: implications under Executive Order operators incorporate maintenance or Aviation Programs, describes in more 13132. This proposed AD would not inspection program changes for their detail the scope of the Agency’s have a substantial direct effect on the affected fleet(s), the FAA has authority. States, on the relationship between the determined that a per-operator estimate The FAA is issuing this rulemaking national Government and the States, or is more accurate than a per-airplane under the authority described in on the distribution of power and estimate. Therefore, the FAA estimates Subtitle VII, Part A, Subpart III, Section responsibilities among the various the average total cost per operator to be 44701: General requirements. Under levels of government.

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For the reasons discussed above, I (f) Compliance required by paragraph (i) of this AD, no certify this proposed regulation: Comply with this AD within the alternative actions (e.g., inspections) and intervals may be used unless the actions and (1) Is not a ‘‘significant regulatory compliance times specified, unless already done. intervals are approved as an alternative action’’ under Executive Order 12866, method of compliance (AMOC) in (2) Would not affect intrastate (g) Required Actions accordance with the procedures specified in aviation in Alaska, and Except as specified by paragraph (h) of this paragraph (l) of this AD. (3) Would not have a significant AD: At the applicable times specified in the (k) Parts Installation Prohibition ‘‘Compliance’’ paragraph of Boeing Alert economic impact, positive or negative, Requirements Bulletin B787–81205– At the applicable time specified in on a substantial number of small entities SB320045–00 RB, Issue 001, dated November paragraph (k)(1) or (2) of this AD, do not under the criteria of the Regulatory 9, 2020, do all applicable actions identified install an aluminum-nickel-bronze inner Flexibility Act. in, and in accordance with, the cylinder bushing on a MLG inner cylinder on Accomplishment Instructions of Boeing Alert any airplane. List of Subjects in 14 CFR Part 39 Requirements Bulletin B787–81205– (1) For airplanes with aluminum-nickel- bronze inner cylinder bushings installed on Air transportation, Aircraft, Aviation SB320045–00 RB, Issue 001, dated November 9, 2020. Actions identified as terminating a MLG inner cylinder as of the effective date safety, Incorporation by reference, action in Boeing Alert Requirements Bulletin of this AD: After the bushing has been Safety. B787–81205–SB320045–00 RB, Issue 001, replaced with a copper-nickel-tin inner cylinder bushing. The Proposed Amendment dated November 9, 2020, terminate the applicable required actions of this AD, (2) For airplanes with copper-nickel-tin provided the terminating action is done in inner cylinder bushings installed on a MLG Accordingly, under the authority inner cylinder as of the effective date of this delegated to me by the Administrator, accordance with the Accomplishment Instructions of Boeing Alert Requirements AD: As of the effective date of this AD. the FAA proposes to amend 14 CFR part Bulletin B787–81205–SB320045–00 RB, Issue 39 as follows: (l) Alternative Methods of Compliance 001, dated November 9, 2020. (AMOCs) Note 1 to paragraph (g): Guidance for PART 39—AIRWORTHINESS (1) The Manager, Seattle ACO Branch, accomplishing the actions required by this DIRECTIVES AD can be found in Boeing Alert Service FAA, has the authority to approve AMOCs Bulletin B787–81205–SB320045–00, Issue for this AD, if requested using the procedures ■ 1. The authority citation for part 39 001, dated November 9, 2020, which is found in 14 CFR 39.19. In accordance with continues to read as follows: referred to in Boeing Alert Requirements 14 CFR 39.19, send your request to your Bulletin B787–81205–SB320045–00 RB, Issue principal inspector or responsible Flight Authority: 49 U.S.C. 106(g), 40113, 44701. 001, dated November 9, 2020. Standards Office, as appropriate. If sending information directly to the manager of the § 39.13 [Amended] (h) Exceptions to Service Information certification office, send it to the attention of ■ 2. The FAA amends § 39.13 by adding Specifications the person identified in Related Information. Information may be emailed to: 9-ANM- the following new airworthiness (1) Where Boeing Alert Requirements [email protected]. Bulletin B787–81205–SB320045–00 RB, Issue directive: (2) Before using any approved AMOC, 001, dated November 9, 2020, uses the phrase notify your appropriate principal inspector, The Boeing Company: Docket No. FAA– ‘‘the Issue 001 date of Requirements Bulletin or lacking a principal inspector, the manager 2021–0457; Project Identifier AD–2020– B787–81205–SB320045–00 RB,’’ this AD of the responsible Flight Standards Office. 01461–T. requires using ‘‘the effective date of this AD.’’ (3) An AMOC that provides an acceptable (a) Comments Due Date (2) Where Boeing Alert Requirements Bulletin B787–81205–SB320045–00 RB, Issue level of safety may be used for any repair, The FAA must receive comments on this 001, dated November 9, 2020, specifies modification, or alteration required by this airworthiness directive (AD) by August 16, contacting Boeing for repair instructions: AD if it is approved by The Boeing Company 2021. This AD requires doing the repair using a Organization Designation Authorization (ODA) that has been authorized by the (b) Affected ADs method approved in accordance with the procedures specified in paragraph (l) of this Manager, Seattle ACO Branch, FAA, to make None. AD. those findings. To be approved, the repair method, modification deviation, or alteration (c) Applicability (3) Where the action for ‘‘CONDITION 2’’ in Table 7 of the ‘‘Compliance’’ paragraph of deviation must meet the certification basis of This AD applies to The Boeing Company Boeing Alert Requirements Bulletin B787– the airplane, and the approval must Model 787–8, 787–9, and 787–10 airplanes, 81205–SB320045–00 RB, Issue 001, dated specifically refer to this AD. certificated in any category, as identified in November 9, 2020, specifies ‘‘Do a detailed (m) Related Information Boeing Alert Requirements Bulletin B787– FPI inspection of the inner cylinder lug bore 81205–SB320045–00 RB, Issue 001, dated for heat and friction damage,’’ for this AD, (1) For more information about this AD, November 9, 2020. the action is ‘‘Do a detailed and FPI contact Allen Rauschendorfer, Senior Aerospace Engineer, Airframe Section, FAA, (d) Subject inspection on the inner cylinder lug bore for heat and friction damage.’’ Seattle ACO Branch, 2200 South 216th St., Air Transport Association (ATA) of Des Moines, WA 98198; phone and fax: 206– America Code 32, Main landing gear. (i) Optional Terminating Action 231–3528; email: allen.rauschendorfer@ faa.gov. (e) Unsafe Condition Revising the existing maintenance or inspection program, as applicable, to (2) For service information identified in This AD was prompted by a report that incorporate the information in CMR item this AD, contact Boeing Commercial during a fleet sampling inspection, cracks number 32–CMR–01 of Section G, Airplanes, Attention: Contractual & Data were found on the inner cylinder pivot pins ‘‘Certification Maintenance Requirement Services (C&DS), 2600 Westminster Blvd., of the left and right main landing gear (MLG) Task,’’ of Boeing 787 Certification MC 110–SK57, Seal Beach, CA 90740–5600; on one of the airplanes. The FAA is issuing Maintenance Requirements (CMRs), telephone 562–797–1717; internet https:// this AD to address any heat damage and D011Z009–03–03, dated June 2020, www.myboeingfleet.com. You may view this cracking to the MLG inner cylinder pivot pin, terminates the repetitive lubrications referenced service information at the FAA, which could result in a fractured pivot pin required by paragraph (g) of this AD. Airworthiness Products Section, Operational and lead to loss of all or part of the pivot pin Safety Branch, 2200 South 216th St., Des assembly, and subsequent collapse of the (j) No Alternative Actions and Intervals Moines, WA. For information on the MLG and reduced controllability of the After the existing maintenance or availability of this material at the FAA, call airplane during takeoff and landing. inspection program has been revised as 206–231–3195.

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Issued on June 6, 2021. Airplanes, Attention: Contractual & Data actually treated as private by its owner. Lance T. Gant, Services (C&DS), 2600 Westminster Under the Freedom of Information Act Director, Compliance & Airworthiness Blvd., MC 110–SK57, Seal Beach, CA (FOIA) (5 U.S.C. 552), CBI is exempt Division, Aircraft Certification Service. 90740–5600; telephone 562–797–1717; from public disclosure. If your [FR Doc. 2021–13932 Filed 6–29–21; 8:45 am] internet https:// comments responsive to this NPRM BILLING CODE 4910–13–P www.myboeingfleet.com. You may view contain commercial or financial this service information at the FAA, information that is customarily treated Airworthiness Products Section, as private, that you actually treat as DEPARTMENT OF TRANSPORTATION Operational Safety Branch, 2200 South private, and that is relevant or 216th St., Des Moines, WA. For responsive to this NPRM, it is important Federal Aviation Administration information on the availability of this that you clearly designate the submitted material at the FAA, call 206–231–3195. comments as CBI. Please mark each 14 CFR Part 39 It is also available at https:// page of your submission containing CBI [Docket No. FAA–2021–0503; Project www.regulations.gov by searching for as ‘‘PROPIN.’’ The FAA will treat such Identifier AD–2021–00163–T] and locating Docket No. FAA–2021– marked submissions as confidential 0503. under the FOIA, and they will not be RIN 2120–AA64 placed in the public docket of this Examining the AD Docket NPRM. Submissions containing CBI Airworthiness Directives; The Boeing You may examine the AD docket at Company Airplanes should be sent to Wayne Lockett, https://www.regulations.gov by Aerospace Engineer, Airframe Section, AGENCY: Federal Aviation searching for and locating Docket No. FAA, Seattle ACO Branch, 2200 South Administration (FAA), DOT. FAA–2021–0503; or in person at Docket 216th St., Des Moines, WA 98198; ACTION: Notice of proposed rulemaking Operations between 9 a.m. and 5 p.m., phone and fax: 206–231–3524; email: (NPRM). Monday through Friday, except Federal [email protected]. Any holidays. The AD docket contains this commentary that the FAA receives SUMMARY: The FAA proposes to NPRM, any comments received, and which is not specifically designated as supersede Airworthiness Directive (AD) other information. The street address for CBI will be placed in the public docket 2005–05–18, which applies to certain Docket Operations is listed above. for this rulemaking. The Boeing Company Model 737–600, FOR FURTHER INFORMATION CONTACT: Background –700, –700C, –800, and –900 series Wayne Lockett, Aerospace Engineer, airplanes. AD 2005–05–18 requires Airframe Section, FAA, Seattle ACO The FAA issued AD 2005–05–18, repetitive inspections for cracking of the Branch, 2200 South 216th St., Des Amendment 39–14007 (70 FR 12410, webs of the aft pressure bulkhead at a Moines, WA 98198; phone and fax: 206– March 14, 2005) (AD 2005–05–18), for certain body station, and corrective 231–3524; email: wayne.lockett@ certain The Boeing Company Model action if necessary. Since the FAA faa.gov. 737–600, –700, –700C, –800, and –900 issued AD 2005–05–18, cracking was series airplanes. AD 2005–05–18 was SUPPLEMENTARY INFORMATION: found in that inspection area on prompted by a report of cracks found, airplanes not identified in the Comments Invited during fatigue testing, at several of the applicability of AD 2005–05–18. This The FAA invites you to send any fastener rows in the web lap splices at proposed AD would retain the written relevant data, views, or the dome apex of the aft pressure requirements of AD 2005–05–18, revise arguments about this proposal. Send bulkhead. AD 2005–05–18 requires the applicability to include additional your comments to an address listed repetitive detailed, low frequency eddy airplanes, and add an inspection for under ADDRESSES. Include ‘‘Docket No. current (LFEC), and high frequency existing repairs on the newly added FAA–2021–0503; Project Identifier AD– eddy current (HFEC) inspections for airplanes. The FAA is proposing this 2021–00163–T’’ at the beginning of your cracking of the webs of the aft pressure AD to address the unsafe condition on comments. The most helpful comments bulkhead at body station (BS) 1016, and these products. reference a specific portion of the corrective action if necessary. The FAA DATES: The FAA must receive comments proposal, explain the reason for any issued AD 2005–05–18 to detect and on this proposed AD by August 16, recommended change, and include correct fatigue cracks in the webs of the 2021. supporting data. The FAA will consider aft pressure bulkhead, which could ADDRESSES: You may send comments, all comments received by the closing result in rapid decompression of the using the procedures found in 14 CFR date and may amend the proposal airplane. 11.43 and 11.45, by any of the following because of those comments. Actions Since AD 2005–05–18 Was methods: Except for Confidential Business Issued • Federal eRulemaking Portal: Go to Information (CBI) as described in the https://www.regulations.gov. Follow the following paragraph, and other Since the FAA issued AD 2005–05– instructions for submitting comments. information as described in 14 CFR 18, cracking has been found at apex • Fax: 202–493–2251. 11.35, the FAA will post all comments webs on airplanes outside the • Mail: U.S. Department of received, without change, to https:// applicability of AD 2005–05–18, which Transportation, Docket Operations, www.regulations.gov, including any includes line numbers 1 through 1166 M–30, West Building Ground Floor, personal information you provide. The inclusive. Line numbers 1167 through Room W12–140, 1200 New Jersey agency will also post a report 1755 inclusive, which are included in Avenue SE, Washington, DC 20590. summarizing each substantive verbal this proposed AD, use a revised fastener • Hand Delivery: Deliver to Mail contact received about this proposed pattern in the 0.032-inch webs that was address above between 9 a.m. and 5 AD. intended to correct the cracking p.m., Monday through Friday, except addressed by AD 2005–05–18. During Federal holidays. Confidential Business Information the assembly process on line numbers For service information identified in CBI is commercial or financial 1167 through 1755, the fasteners in the this NPRM, contact Boeing Commercial information that is both customarily and apex dome region are subjected to

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fuselage pressurization fatigue cycles repairs, repetitive detailed and HFEC identified as exceptions in the and clamp-up stresses. Cracks in the inspections for cracks around the web regulatory text of this proposed AD. inspection area of AD 2005–05–18 have fasteners, repetitive LFEC inspection for For information on the procedures now been found on airplanes within the cracks around the hidden web lap splice and compliance times, see this service range of line numbers 1167 through fastener locations, and repair of cracks. information at https:// 1755 inclusive. At one location, the This service information is reasonably www.regulations.gov by searching for crack was linked from the first to the available because the interested parties and locating Docket No. FAA–2021– second fastener row. This cracking was have access to it through their normal 0503. identified during an inspection for course of business or by the means Differences Between This Proposed AD cracking of the web lap splice of the aft identified in the ADDRESSES section. and the Service Information pressure bulkhead, as required by AD Proposed AD Requirements in This 2017–10–22, Amendment 39–18896 (82 For Group 1 airplanes, the NPRM FR 23507, May 23, 2017) (AD 2017–10– Accomplishment Instructions of Boeing 22). The inspections and intervals Although this proposed AD does not Alert Service Bulletin 737–53A1251 specified in AD 2017–10–22 are not explicitly restate the requirements of AD Revision 2, dated January 20, 2021, do adequate to address the specific fatigue 2005–05–18, this proposed AD would not include any ‘‘RC’’ (required for cracking occurring in the web apex area retain all of the requirements of AD compliance) steps. The RC tagging was that is the subject of this NPRM. 2005–05–18. Those requirements are inadvertently removed from Boeing referenced in the service information Alert Service Bulletin 737–53A1251 FAA’s Determination identified previously, which, in turn, is Revision 2, dated January 20, 2021. For The FAA is issuing this NPRM after referenced in paragraph (g) of this Group 1 airplanes, this proposed AD determining that the unsafe condition proposed AD. This proposed AD would would therefore require treating Step described previously is likely to exist or revise the applicability to include 3.B.2. of the Accomplishment develop on other products of the same additional airplanes, and add an Instructions of Boeing Alert Service type design. inspection for existing repairs on those Bulletin 737–53A1251 Revision 2, dated airplanes. This proposed AD would also January 20, 2021, as an RC step. Related Service Information Under 1 require accomplishment of the actions CFR Part 51 identified as ‘‘RC’’ (required for Costs of Compliance The FAA reviewed Boeing Alert compliance) in the Accomplishment The FAA estimates that this AD, if Service Bulletin 737–53A1251, Revision Instructions of Boeing Alert Service adopted as proposed, would affect 744 2, dated January 20, 2021. This service Bulletin 737–53A1251, Revision 2, airplanes of U.S. registry. The FAA information specifies procedures for a dated January 20, 2021, described estimates the following costs to comply general visual inspection for existing previously, except for any differences with this proposed AD:

ESTIMATED COSTS

Action Labor cost Parts cost Cost per product Cost on U.S. operators

Detailed, HFEC, and Up to 10 work-hours × $85 per hour = Up to $0 Up to $850 per inspec- Up to $632,400 per in- LFEC inspections. $850 per inspection cycle. tion cycle. spection cycle. General visual inspec- 1 work-hour × $85 per hour = $85 ...... 0 $85 ...... $16,490. tion (194 airplanes).

The FAA estimates the following would be required based on the results has no way of determining the number costs to do any necessary repairs that of the proposed inspections. The FAA of aircraft that might need these repairs:

ON-CONDITION COSTS

Action Labor cost Parts cost Cost per product

Repair ...... Up to 30 * work-hours × $85 per hour = Up to $2,550 ...... Up to $30,000 * ...... Up to $32,550 * * Repair costs will vary depending on size of the repair required.

Authority for This Rulemaking with promoting safe flight of civil implications under Executive Order Title 49 of the United States Code aircraft in air commerce by prescribing 13132. This proposed AD would not specifies the FAA’s authority to issue regulations for practices, methods, and have a substantial direct effect on the rules on aviation safety. Subtitle I, procedures the Administrator finds States, on the relationship between the Section 106, describes the authority of necessary for safety in air commerce. national Government and the States, or the FAA Administrator. Subtitle VII, This regulation is within the scope of on the distribution of power and Aviation Programs, describes in more that authority because it addresses an responsibilities among the various detail the scope of the Agency’s unsafe condition that is likely to exist or levels of government. authority. develop on products identified in this For the reasons discussed above, I The FAA is issuing this rulemaking rulemaking action. certify that the proposed regulation: under the authority described in Regulatory Findings (1) Is not a ‘‘significant regulatory Subtitle VII, Part A, Subpart III, Section action’’ under Executive Order 12866, 44701, General requirements. Under The FAA has determined that this (2) Would not affect intrastate that section, Congress charges the FAA proposed AD would not have federalism aviation in Alaska, and

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(3) Would not have a significant (g) Required Actions or lacking a principal inspector, the manager economic impact, positive or negative, Except as specified by paragraph (h) of this of the responsible Flight Standards Office. on a substantial number of small entities AD: At the applicable times specified in (3) An AMOC that provides an acceptable under the criteria of the Regulatory paragraph 1.E., ‘‘Compliance,’’ of Boeing level of safety may be used for any repair, Flexibility Act. Alert Service Bulletin 737–53A1251 Revision modification, or alteration required by this 2, dated January 20, 2021, do all applicable AD if it is approved by The Boeing Company List of Subjects in 14 CFR Part 39 actions identified as ‘‘RC’’ (required for Organization Designation Authorization compliance) in, and in accordance with, the (ODA) that has been authorized by the Air transportation, Aircraft, Aviation Accomplishment Instructions of Boeing Alert Manager, Seattle ACO Branch, FAA, to make safety, Incorporation by reference, Service Bulletin 737–53A1251 Revision 2, Safety. dated January 20, 2021. For Group 1 those findings. To be approved, the repair method, modification deviation, or alteration The Proposed Amendment airplanes, as defined in Boeing Alert Service Bulletin 737–53A1251 Revision 2, dated deviation must meet the certification basis of Accordingly, under the authority January 20, 2021: Step 3.B.2. of the the airplane, and the approval must delegated to me by the Administrator, Accomplishment Instructions of Boeing Alert specifically refer to this AD. the FAA proposes to amend 14 CFR part Service Bulletin 737–53A1251 Revision 2, (4) AMOCs approved for AD 2005–05–18 39 as follows: dated January 20, 2021, is an RC step, and are approved as AMOCs for the the provisions of paragraphs (j)(5)(i) and (ii) corresponding provisions of Boeing Alert PART 39—AIRWORTHINESS of this AD apply. Service Bulletin 737–53A1251 Revision 2, DIRECTIVES (h) Exceptions to Service Information dated January 20, 2021, that are required by Specifications paragraph (g) of this AD. ■ 1. The authority citation for part 39 (1) Where Boeing Alert Service Bulletin (5) Except as specified by paragraph (h) of continues to read as follows: 737–53A1251 Revision 2, dated January 20, this AD: For service information that Authority: 49 U.S.C. 106(g), 40113, 44701. 2021, uses the phrase ‘‘the Revision 1 date of contains steps that are labeled as Required this service bulletin,’’ this AD requires using for Compliance (RC), the provisions of § 39.13 [Amended] ‘‘the effective date of this AD.’’ paragraphs (j)(5)(i) and (ii) of this AD apply. ■ 2. The FAA amends § 39.13 by: (2) Where Boeing Alert Service Bulletin (i) The steps labeled as RC, including 737–53A1251, Revision 2, dated January 20, ■ a. Removing Airworthiness Directive substeps under an RC step and any figures 2021, specifies contacting Boeing for repair identified in an RC step, must be done to (AD) 2005–05–18, Amendment 39– instructions or for alternative inspections: comply with the AD. If a step or substep is 14007 (70 FR 12410, March 14, 2005), This AD requires doing the repair, or doing and the alternative inspections and applicable on- labeled ‘‘RC Exempt,’’ then the RC ■ b. Adding the following new AD: condition actions using a method approved requirement is removed from that step or in accordance with the procedures specified substep. An AMOC is required for any The Boeing Company: Docket No. FAA– in paragraph (j) of this AD. deviations to RC steps, including substeps 2021–0503; Project Identifier AD–2021– and identified figures. 00163–T. (i) Credit for Previous Actions (ii) Steps not labeled as RC may be (a) Comments Due Date (1) For airplanes having line numbers 1 deviated from using accepted methods in through 1166 inclusive: This paragraph The FAA must receive comments on this accordance with the operator’s maintenance provides credit for the corresponding actions airworthiness directive (AD) action by or inspection program without obtaining of Boeing Alert Service Bulletin 737– August 16, 2021. approval of an AMOC, provided the RC steps, 53A1251 Revision 2, dated January 20, 2021, (b) Affected ADs that are required by paragraph (g) of this AD, including substeps and identified figures, can if those actions were performed before the still be done as specified, and the airplane This AD replaces AD 2005–05–18, can be put back in an airworthy condition. Amendment 39–14007 (70 FR 12410, March effective date of this AD using Boeing Service 14, 2005) (AD 2005–05–18). Bulletin 737–53–1251, dated June 3, 2004, (k) Related Information which was incorporated by reference in AD (c) Applicability 2005–05–18. (1) For more information about this AD, This AD applies to The Boeing Company (2) This paragraph provides credit for the contact Wayne Lockett, Aerospace Engineer, Model 737–600, –700, –700C, –800, and –900 corresponding actions of Boeing Alert Airframe Section, FAA, Seattle ACO Branch, series airplanes, certificated in any category; Service Bulletin 737–53A1251 Revision 2, 2200 South 216th St., Des Moines, WA as identified in Boeing Alert Service Bulletin dated January 20, 2021, that are required by 98198; phone and fax: 206–231–3524; email: 737–53A1251 Revision 2, dated January 20, paragraph (g) of this AD, if those actions were [email protected]. 2021. performed before the effective date of this AD (2) For service information identified in using Boeing Alert Service Bulletin 737–53– this AD, contact Boeing Commercial (d) Subject 1251, Revision 1, dated September 22, 2020, Airplanes, Attention: Contractual & Data which is not incorporated by reference in this Air Transport Association (ATA) of Services (C&DS), 2600 Westminster Blvd., America Code 53, Fuselage. AD. MC 110–SK57, Seal Beach, CA 90740–5600; (e) Unsafe Condition (j) Alternative Methods of Compliance telephone 562–797–1717; internet https:// (AMOCs) This AD was prompted by a report of www.myboeingfleet.com. You may view this cracks found at several of the fastener rows (1) The Manager, Seattle ACO Branch, referenced service information at the FAA, in the web lap splices at the dome apex of FAA, has the authority to approve AMOCs Airworthiness Products Section, Operational the aft pressure bulkhead, and the for this AD, if requested using the procedures Safety Branch, 2200 South 216th St., Des determination that airplanes not affected by found in 14 CFR 39.19. In accordance with Moines, WA. For information on the AD 2005–05–18 are subject to this unsafe 14 CFR 39.19, send your request to your availability of this material at the FAA, call condition. The FAA is issuing this AD to principal inspector or responsible Flight 206–231–3195. address fatigue cracks in the webs of the aft Standards Office, as appropriate. If sending pressure bulkhead, which could result in information directly to the manager of the Issued on June 11, 2021. rapid decompression of the airplane. certification office, send it to the attention of Lance T. Gant, the person identified in Related Information. Director, Compliance & Airworthiness (f) Compliance Information may be emailed to: 9-ANM- Division, Aircraft Certification Service. Comply with this AD within the [email protected]. compliance times specified, unless already (2) Before using any approved AMOC, [FR Doc. 2021–13930 Filed 6–29–21; 8:45 am] done. notify your appropriate principal inspector, BILLING CODE 4910–13–P

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DEPARTMENT OF TRANSPORTATION Authority for This Rulemaking www.faa.gov/air_traffic/publications/ airspace_amendments/. Federal Aviation Administration The FAA’s authority to issue rules You may review the public docket regarding aviation safety is found in containing the proposal, any comments 14 CFR Part 71 Title 49 of the United States Code. received, and any final disposition in Subtitle I, Section 106 describes the person in the Dockets Office (see the [Docket No. FAA–2021–0478; Airspace authority of the FAA Administrator. Docket No. 21–AWP–28] ADDRESSES section for the address and Subtitle VII, Aviation Programs, phone number) between 9:00 a.m. and RIN 2120–AA66 describes in more detail the scope of the 5:00 p.m., Monday through Friday, agency’s authority. This rulemaking is except federal holidays. An informal Proposed Establishment of Class E promulgated under the authority Airspace; Mesa Del Rey Airport, CA docket may also be examined during described in Subtitle VII, Part A, normal business hours at the Northwest AGENCY: Federal Aviation Subpart I, Section 40103. Under that Mountain Regional Office of the Federal Administration (FAA), DOT. section, the FAA is charged with Aviation Administration, Air Traffic ACTION: Notice of proposed rulemaking prescribing regulations to assign the use Organization, Western Service Center, (NPRM). of airspace necessary to ensure the Operations Support Group, 2200 S safety of aircraft and the efficient use of 216th Street, Des Moines, WA 98198. SUMMARY: This action proposes to airspace. This regulation is within the establish Class E airspace extending scope of that authority, as it would Availability and Summary of upward from 700 feet above the surface establish Class E airspace at Mesa Del Documents for Incorporation by at Mesa Del Rey Airport, King City, CA. Rey Airport, King City, CA, to support Reference The establishment of Class E airspace IFR operations at the airport. This document proposes to amend will support the airport’s transition from Comments Invited FAA Order 7400.11E, Airspace visual flight rules (VFR) to instrument Designations and Reporting Points, flight rules (IFR) operations. This action Interested parties are invited to dated July 21, 2020, and effective would ensure the safety and participate in this proposed rulemaking September 15, 2020. FAA Order management of IFR operations at the by submitting such written data, views, 7400.11E is publicly available as listed airport. or arguments, as they may desire. in the ADDRESSES section of this DATES: Comments must be received on Comments that provide the factual basis document. FAA Order 7400.11E lists or before August 16, 2021. supporting the views and suggestions Class A, B, C, D, and E airspace areas, ADDRESSES: Send comments on this presented are particularly helpful in air traffic service routes, and reporting proposal to the U.S. Department of developing reasoned regulatory points. Transportation, Docket Operations, 1200 decisions on the proposal. Comments The Proposal New Jersey Avenue SE, West Building are specifically invited on the overall The FAA is proposing an amendment Ground Floor, Room W12–140, regulatory, aeronautical, economic, to 14 CFR part 71 by establishing Class Washington, DC 20590; telephone: 1– environmental, and energy-related E airspace extending upward from 700 800–647–5527, or (202) 366–9826. You aspects of the proposal. feet above the surface at Mesa Del Rey must identify FAA Docket No. FAA– Communications should identify both Airport, King City, CA. This airspace is 2021–0478; Airspace Docket No. 21– docket numbers and be submitted in designed to contain IFR departure to AWP–28, at the beginning of your triplicate to the address listed above. 1,200 feet above the surface and IFR comments. You may also submit Persons wishing the FAA to arrivals descending below 1,500 feet comments through the internet at acknowledge receipt of their comments above the surface. The establishment of https://www.regulations.gov. on this notice must submit with those FAA Order 7400.11E, Airspace comments a self-addressed, stamped Class E airspace will support the Designations and Reporting Points, and postcard on which the following airport’s transition from VFR to IFR subsequent amendments can be viewed statement is made: ‘‘Comments to operations. Class E5 airspace designations are online at https://www.faa.gov/air_ Docket No. FAA–2021–0478; Airspace published in paragraph 6005 of FAA traffic/publications/. For further Docket No. 21–AWP–28’’. The postcard Order 7400.11E, dated July 21, 2020, information, you can contact the will be date/time stamped and returned and effective September 15, 2020, which Airspace Policy Group, Federal Aviation to the commenter. is incorporated by reference in 14 CFR Administration, 800 Independence All communications received before 71.1. The Class E airspace designation Avenue SW, Washington, DC 20591; the specified closing date for comments listed in this document will be telephone: (202) 267–8783. The Order is will be considered before taking action published subsequently in the Order. also available for inspection at the on the proposed rule. The proposal FAA Order 7400.11, Airspace National Archives and Records contained in this notice may be changed Designations and Reporting Points, is Administration (NARA). For in light of the comments received. A published yearly and effective on information on the availability of FAA report summarizing each substantive September 15. Order 7400.11E at NARA, email public contact with FAA personnel [email protected] or go to https:// concerned with this rulemaking will be Regulatory Notices and Analyses www.archives.gov/federal-register/cfr/ filed in the docket. The FAA has determined that this ibr-locations.html. Availability of NPRMs regulation only involves an established FOR FURTHER INFORMATION CONTACT: body of technical regulations for which Matthew Van Der Wal, Federal Aviation An electronic copy of this document frequent and routine amendments are Administration, Western Service Center, may be downloaded through the necessary to keep them operationally Operations Support Group, 2200 S internet at https://www.regulations.gov. current, is non-controversial, and 216th Street, Des Moines, WA 98198; Recently published rulemaking unlikely to result in adverse or negative telephone (206) 231–3695. documents can also be accessed through comments. It, therefore: (1) Is not a SUPPLEMENTARY INFORMATION: the FAA’s web page at https:// ‘‘significant regulatory action’’ under

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Executive Order 12866; (2) is not a Issued in Des Moines, Washington, on June Certification’’) to provide for the safe ‘‘significant rule’’ under DOT 23, 2021. use of gardenia blue powder as a color Regulatory Policies and Procedures (44 B.G. Chew, additive in: (1) Sport drinks; (2) flavored FR 11034; February 26, 1979); and (3) Acting Group Manager, Operations Support or enhanced, noncarbonated water; (3) does not warrant preparation of a Group, Western Service Center. fruit drinks and ades; (4) ready-to-drink regulatory evaluation as the anticipated [FR Doc. 2021–13844 Filed 6–29–21; 8:45 am] tea; (5) hard candy; and (6) soft candy, impact is so minimal. Since this is a BILLING CODE 4910–13–P at levels consistent with good routine matter that will only affect air manufacturing practice. traffic procedures and air navigation, it The petitioner has claimed that this is certified that this rule, when DEPARTMENT OF HEALTH AND action is categorically excluded under promulgated, would not have a HUMAN SERVICES 21 CFR 25.32(k) because the substance significant economic impact on a is intended to remain in food through substantial number of small entities Food and Drug Administration ingestion by consumers and is not under the criteria of the Regulatory intended to replace macronutrients in Flexibility Act. 21 CFR Part 73 food. In addition, the petitioner has stated that, to their knowledge, no Environmental Review [Docket No. FDA–2021–C–0522] extraordinary circumstances exist. If This proposal will be subject to an Gardenia Blue Interest Group; Filing of FDA determines a categorical exclusion environmental analysis in accordance Color Additive Petition applies, neither an environmental with FAA Order 1050.1F, assessment nor an environmental ‘‘Environmental Impacts: Policies and AGENCY: Food and Drug Administration, impact statement is required. If FDA Procedures’’ prior to any FAA final HHS. determines a categorical exclusion does regulatory action. ACTION: Notification of petition. not apply, we will request an environmental assessment and make it List of Subjects in 14 CFR Part 71 SUMMARY: The Food and Drug available for public inspection. Administration (FDA or we) is Airspace, Incorporation by reference, announcing that we have filed a Dated: June 23, 2021. Navigation (air). petition, submitted by Gardenia Blue Lauren K. Roth, The Proposed Amendment Interest Group (GBIG), proposing that Acting Principal Associate Commissioner for the color additive regulations be Policy. Accordingly, pursuant to the amended to provide for the safe use of [FR Doc. 2021–13952 Filed 6–29–21; 8:45 am] authority delegated to me, the Federal gardenia blue powder in various foods. BILLING CODE 4164–01–P Aviation Administration proposes to DATES: amend 14 CFR part 71 as follows: The color additive petition was filed on April 20, 2021. PART 71—DESIGNATION OF CLASS A, ADDRESSES: For access to the docket to DEPARTMENT OF EDUCATION B, C, D, AND E AIRSPACE AREAS; AIR read background documents or 34 CFR Part 75 TRAFFIC SERVICE ROUTES; AND comments received, go to https:// REPORTING POINTS www.regulations.gov and insert the [Docket ID ED–2021–OPEPD–0054] docket number found in brackets in the ■ 1. The authority citation for 14 CFR heading of this document into the Proposed Priorities and Definitions— part 71 continues to read as follows: ‘‘Search’’ box and follow the prompts, Secretary’s Supplemental Priorities and/or go to the Dockets Management and Definitions for Discretionary Authority: 49 U.S.C. 106(f), 106(g), 40103, Grants Programs 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, Staff, 5630 Fishers Lane, Rm. 1061, 1959–1963 Comp., p. 389. Rockville, MD 20852. AGENCY: U.S. Department of Education. FOR FURTHER INFORMATION CONTACT: § 71.1 [Amended] ACTION: Proposed priorities and Stephen DiFranco, Office of Food definitions. ■ 2. The incorporation by reference in Additive Safety (HFS–255), Center for 14 CFR 71.1 of FAA Order 7400.11E, Food Safety and Applied Nutrition, SUMMARY: To support a comprehensive Airspace Designations and Reporting Food and Drug Administration, 5001 education agenda, the Secretary Points, dated July 21, 2020, and Campus Dr., College Park, MD 20740, proposes six priorities and related effective September 15, 2020, is 240–402–2710; or Alexandra Jurewitz, definitions for use in discretionary grant amended as follows: Office of Regulations and Policy (HFS– programs. The Secretary may choose to Paragraph 6005 Class E Airspace Areas 024), Center for Food Safety and include an entire priority within a grant Extending Upward From 700 Feet or More Applied Nutrition, Food and Drug program or one or more of its subparts. Above the Surface of the Earth. Administration, 5001 Campus Dr., These proposed priorities and * * * * * College Park, MD 20740, 240–402–2378. definitions are intended to replace the SUPPLEMENTARY INFORMATION: Under the current supplemental priorities AWP CA E5 King City, CA [New] Federal Food, Drug, and Cosmetic Act published on March 2, 2018, the Mesa Del Rey Airport, CA (section 721(d)(1) (21 U.S.C. Opportunity Zones final priority ° ′ ″ ° ′ ″ (Lat. 36 13 43 N, long. 121 07 17 W) 379e(d)(1))), we are giving notice that published on November 27, 2019, and That airspace extending upward from 700 we have filed a color additive petition the Remote Learning priority published feet above the surface within a 3.7-mile (CAP 1C0319), submitted by GBIG, c/o on December 30, 2020. However, those radius of the airport, and within 4.1 miles Exponent, Inc., 1150 Connecticut priorities remain in effect for notices each side of the 126° bearing from the airport extending from the airport to 12.8 miles Avenue NW, Suite 1100, Washington, inviting applications (NIAs) published southeast of the airport, and within 3.7 miles DC 20036. The petition proposes to before the Department finalizes the each side of the 332° bearing from the airport amend the color additive regulations in proposed priorities in this document. extending from the 3.7-mile radius to 9.3 part 73 (21 CFR part 73, ‘‘Listing of Retaining the Administrative Priorities miles northwest of the airport. Color Additives Exempt From published on March 9, 2020, allows us

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to continue to prioritize rural the proposed priority or definition that funding and opportunity within school applicants, new applicants, and other each comment addresses. districts, schools, classrooms, and other priorities while the Department We invite you to assist us in learning environments; implementing continues to examine potential updates complying with the specific effective approaches to teaching and to the Education Department General requirements of Executive Orders 12866 learning; closing the divides in digital Administrative Regulations, which may and 13563 and their overall requirement access and use; meeting the social, include incorporation of those March 9, of reducing regulatory burden that emotional, and academic needs of all 2020, priorities. might result from the proposed students and creating safe, nurturing, DATES: We must receive your comments priorities and definitions. Please let us and inclusive learning environments; on or before July 30, 2021. know of any further ways we could improving educator diversity; ADDRESSES: Submit your comments reduce potential costs or increase expanding opportunities for educators through the Federal eRulemaking Portal potential benefits while preserving the to receive the preparation, support, and or via postal mail, commercial delivery, effective and efficient administration of respect they need and deserve; and or hand delivery. We will not accept our programs. expanding access to high-quality early comments submitted by fax or by email During and after the comment period, learning (as defined in this document). or those submitted after the comment you may inspect all public comments In postsecondary education, the period. To ensure that we do not receive about the proposed priorities and proposed priorities address increasing duplicate copies, please submit your definitions by accessing access and success in postsecondary comments only once. In addition, please Regulations.gov. Due to the novel education for underserved students (as include the Docket ID at the top of your coronavirus 2019 (COVID–19) defined in this document), including comments. pandemic, the Department buildings are making college affordable and fostering • Federal eRulemaking Portal: Go to currently not open to the public. supportive career pathways. In both www.regulations.gov to submit your However, upon reopening, you may also K–12 and postsecondary education, the comments electronically. Information inspect the comments in person in proposed priorities include a focus on on using Regulations.gov, including Room 4W308, 400 Maryland Avenue providing all students with access to instructions for accessing agency SW, Washington, DC, between the hours high-quality schools and institutions documents, submitting comments, and of 8:30 a.m. and 4:00 p.m., Eastern time, that prepare them for college and career viewing the docket, is available on the Monday through Friday of each week with a balance of quality coursework site under ‘‘FAQ.’’ except Federal holidays. that includes the arts and sciences; • Postal Mail, Commercial Delivery, Assistance to Individuals with ensuring post-enrollment success; or Hand Delivery: If you mail or deliver Disabilities in Reviewing the supporting preparatory and current your comments about the proposed Rulemaking Record: On request, we will educator growth; and strengthening priorities and definitions, address them provide an appropriate accommodation high-quality career and technical to Nkemjika Ofodile-Carruthers, U.S. or auxiliary aid to an individual with a education. disability who needs assistance to Department of Education, 400 Maryland The Secretary proposes these review the comments or other Avenue SW, Room 4W308, Washington, priorities to advance evidence-based documents in the public rulemaking DC 20202. and capacity building approaches with record for the proposed priorities and Privacy Note: The Department of an understanding that meeting these definitions. If you want to schedule an Education’s (Department’s) policy is to goals requires multifaceted efforts. For appointment for this type of make all comments received from example, rather than a priority that is accommodation or auxiliary aid, please members of the public available for focused solely on educator professional contact the person listed under FOR public viewing in their entirety on the development, the proposed priority FURTHER INFORMATION CONTACT. Federal eRulemaking Portal at addresses the needs of all educators, all Program Authority: 20 U.S.C. 1221e– www.regulations.gov. Therefore, aspects of the educator pipeline, and the 3. commenters should be careful to diversity of and equitable access to include in their comments only Proposed Priorities: This document contains six proposed priorities. those educators. This approach to the information that they wish to make priorities provides a vision for systems- publicly available. Background level approaches that build capacity for FOR FURTHER INFORMATION CONTACT: The Secretary proposes six priorities long-term change. Furthermore, in order Nkemjika Ofodile-Carruthers, U.S. and related definitions for use in to ensure those change efforts are Department of Education, 400 Maryland discretionary grant programs to reflect effectively targeted to meet the needs of Avenue SW, Room 4W308, Washington, the Secretary’s vision for American students, these proposed priorities also DC 20202. Telephone: (202) 401–4389. education. This vision includes a include a focus on specific subgroups of Email: nkemjika.ofodile-carruthers@ respect for the dignity and potential of students, such as military- and veteran- ed.gov. each and every student and their access connected students (as defined in this If you use a telecommunications to educational opportunity. These document), which will provide greater device for the deaf (TDD) or a text proposed priorities are aligned with flexibility for the Secretary to focus the telephone (TTY), call the Federal Relay evidence-based (as defined in this work of grantees on areas of critical Service (FRS), toll-free, at 1–800–877– document) and capacity-building need. 8339. approaches to addressing various Additionally, regarding each SUPPLEMENTARY INFORMATION: interconnected policy issues in the technology reference, all technology Invitation to Comment: We invite you Nation’s education system. developed or used under these proposed to submit comments regarding the With a focus on creating the priorities must be accessible to English proposed priorities and definitions. To conditions under which students have learners and to individuals with ensure that your comments have equitable access to opportunity, these disabilities in accordance with Section maximum effect in developing the final proposed priorities address a variety of 504 of the Rehabilitation Act of 1973 priorities and definitions, we urge you areas. In K–12 education, these areas and Title II of the Americans with to clearly identify the specific section of include closing the large gaps in Disabilities Act, as applicable.

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These proposed priorities and COVID–19 during all school-related disengaged from learning, including definitions are intended to replace the activities is critical for keeping schools students not participating in in-person current supplemental priorities and campuses open. It is essential that or remote instruction, and specific published on March 2, 2018 (83 FR schools and students receive the strategies for reengaging and supporting 9096), the Opportunity Zones final resources, technical assistance, and students. priority published on November 27, other supports necessary to plan and (b) Providing resources and supports 2019 (84 FR 65300), and the Remote implement comprehensive prevention to meet the basic, fundamental, health Learning priority published on strategies and that administrators, and safety needs of students and December 30, 2020 (85 FR 86545); NIAs educators, and faculty consistently educators. published before the finalization of engage students, parents, and (c) Addressing students’ social, these proposed priorities that use the community partners throughout the emotional, mental health, and academic current priorities remain in effect. At process—paying close attention to needs. this time, we are retaining the underserved communities including (d) Addressing teacher, faculty, and Administrative Priorities published on communities of color, which have borne staff well-being. March 9, 2020 (85 FR 13640) while the a disproportionate burden of COVID– (e) Providing students and educators Department continues to examine 19.3 with access to reliable high-speed potential updates to the Education Moving forward, as the effects of the broadband and devices; providing students with access to high-quality, Department General Administrative pandemic will be residual and last for technology-supported learning Regulations, which may include years, schools will also need to increase experiences that are accessible to incorporation of these March 9, 2020, their support of students’ social, children or students with disabilities 4 priorities. emotional, mental health, and academic Proposed Priority 1—Addressing the needs in response to the impacts of and educators with disabilities to Impact of COVID–19 on Students, COVID. As students return to in-person accelerate learning; and providing Educators, and Faculty. learning, they will need ongoing educators with access to job-embedded Background: support and innovative approaches to professional development to support the The COVID–19 pandemic negatively learning in the coming years to effective use of technology. (f) Using technology to enable affected many students, educators, and accelerate learning and succeed. evidence-based interventions to support faculty throughout the country. Educators may need resources to learn personalized in-person student learning Although virtually everyone was new approaches to supporting students, as well as evidence-based supplemental affected to some degree, the pandemic especially in communities that have activities that extend learning time and has had a disproportionate impact on faced significant loss and trauma. In increase student engagement and, where underserved students and laid bare the addition, educators may need additional possible, increase parent engagement. unique challenges faced by these support and development to mitigate students. Many of these challenges pre- (g) Using evidence-based instructional the longer-term impact of COVID on approaches and supports to accelerate date the pandemic and will be felt for their own well-being. States and years to come. For example, some of learning for students in ways that districts also need resources to stabilize ensure all students have the opportunity these students were already less likely current workforce positions and protect to have access to the resources, such as to successfully meet challenging the pipeline into the profession. academic content standards without broadband, and student supports The impact of the COVID–19 contributing to tracking or remedial required to participate in high-quality pandemic changed the education remote education. Underserved students courses. landscape for the foreseeable future, (h) Using evidence-based are also more likely to rely on key especially as students continue to make instructional approaches or supports to school- or campus-supported resources up for lost classroom instruction. better allow individuals who did not such as food programs, special However, it also provides an enroll in, withdrew from, or reduced education and related services, health opportunity to redesign how schools course loads in postsecondary education services (including mental health), approach teaching and learning in ways or training programs due to COVID–19 counseling, or after-school programs to that both address long-standing gaps in to enroll, remain enrolled, and complete meet basic or developmental needs.1 For educational opportunity and better credit-bearing coursework and earn parents, guardians, or caregivers who prepare students for college and careers. recognized postsecondary credentials. have less flexible jobs, staying at home This priority would support recovery Proposed Priority 2—Promoting to provide childcare or aid with remote and innovation to best serve students Equity in Student Access to Educational learning may be impracticable or and support educators. Resources, Opportunities, and impossible, which may further Proposed Priority: 2 Welcoming Environments. exacerbate these challenges. Projects that are designed to address Background: To mitigate the impact of the COVID– the impacts of the COVID–19 pandemic, Improving educational equity is a 19 pandemic and support safe in-person including impacts that extend beyond priority for the Biden-Harris instruction, schools and campuses need the timing of the pandemic itself, the Administration, with particular focus on sufficient resources, close collaboration students most impacted by the supporting underserved students. The with local public health officials, and pandemic, and the educators who serve Department seeks to remedy the deeply the support of community members them through one or more of the rooted inequities in this country’s who commit to following State and local following priority areas: education system which when public health guidelines. Consistent (a) Conducting community asset- addressed, will better allow access to implementation of effective strategies mapping and needs assessments that educational opportunity for for preventing the transmission of may include an assessment of the extent to which students have become 4 In an NIA, the Department would use either 1 https://learningpolicyinstitute.org/sites/default/ ‘‘children with disabilities’’ or ‘‘students with files/product-files/Educating_Whole_Child_ 3 See www.cdc.gov/coronavirus/2019-ncov/ disabilities,’’ depending on which term is more REPORT.pdf. community/health-equity/racial-ethnic-disparities/ appropriate for the program. In this document, we 2 https://files.eric.ed.gov/fulltext/ED610000.pdf. index.html. use these terms interchangeably.

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underserved students and enable suspensions, while White females make implement responses through, one or educators to work toward closing up 22.9 percent of the total female more of the following: achievement gaps. enrollment and represent 7.99 percent (1) Promoting student access to and Inadequate access to and the of female students receiving one or more success in rigorous and engaging inequitable distribution of resources out-of-school suspensions. Research approaches to learning that are racially, negatively affect underserved students’ suggests that these disparities can be ethnically, culturally, and linguistically educational experience in a number of exacerbated by or are the result of inclusive and prepare students for ways, which may include fewer educators’ subjective evaluations of college, career, and civic life, including opportunities for educational students’ actions rather than being the one or more of the following: enrichment, high-quality early learning, product of objective differences in (i) Student-centered learning models well-rounded coursework, and high- student behavior.8 English learners, that leverage technology to address quality college and career pathways; LGBTQ+ students, children or students learner variability (e.g., universal design discriminatory design and with disabilities (as defined in this for learning (as defined in this notice), administration of school discipline and document), and students from low- K–12 competency-based education (as its associated outcomes; and limited income backgrounds also experience defined in this notice), project-based access to the most prepared, higher rates of discipline compared to learning, or hybrid/blended learning) experienced, and effective teachers. their peers.9 and provide high-quality learning These factors can limit access to Finally, underserved students have content, applications, or tools. resources and success in student less access to qualified educators. For (ii) Middle school courses or projects learning. example, schools with high enrollments that prepare students to participate in For example, a December 2020 brief of students of color were four times as advanced coursework in high school. (iii) Advanced courses and programs, from the National Center for Education likely to employ uncertified teachers as including dual enrollment and early Statistics at the Department’s Institute of were schools with low enrollments of 5 Education Sciences reported that a 10 college programs. students of color. Students in schools (iv) Project-based and experiential lower percentage of schools in which 75 with high enrollments of students of percent or more of students were learning, including service and work- color also have less access to based learning. approved for free or reduced-price experienced teachers. In these schools, lunch offered dual enrollment (v) High-quality career and technical nearly one in every six teachers is just education courses, pathways, and opportunities for students than did beginning his or her career, compared to schools with lower participation rates in industry-recognized credentials that are one in every 10 teachers in schools with integrated into the curriculum. free or reduced-price lunch programs low enrollments of students of color.11 (71 percent, compared with 93 percent (vi) Science, technology, engineering, This proposed priority seeks to and mathematics (STEM), including for schools in which 35 to 49 percent of address the inequities in our education students were approved for free or computer science coursework. system and better enable students to (vii) Civics programs that support reduced price lunch). access the educational opportunities These inequities also include the students in understanding and engaging they need to succeed in school and disproportionate impact of school in American democratic practices, reach their future goals, in tandem with discipline policies on students of color.6 (2) Increasing the number and other Departmental statutes, which For example, during the 2017–18 school proportion of experienced, fully require applicants to develop and year, African American male students certified, in-field, and effective describe plans for equity for students, comprised 7.7 percent of all male educators, and educators from educators, and other program students enrolled in grades K–12 but traditionally underrepresented beneficiaries. accounted for 35.4 percent of male backgrounds or the communities they Proposed Priority: 12 students who received one or more out- serve. Projects designed to promote of-school suspensions.7 White male (3) Improving the preparation, educational equity and adequacy in students, on the other hand, account for recruitment, and early career support resources and opportunity for 24.4 percent of all male students and development of educators in high- underserved students— enrolled, but represent 35.5 percent of need fields (as may be defined in the (a) In one or more of the following program statute or regulations) or hard male students who received one or more educational settings: out-of-school suspensions. Black male to staff schools. (1) Early learning programs. (4) Improving the retention of fully students are one-third the populace of (2) Elementary school. certified, experienced, and effective White male students with (3) Middle school. educators in high-need schools, and disproportionate suspensions that lead (4) High school. high-need fields. to greater education interruption and (6) Out-of-school-time (OST) settings. (5) Addressing inequities in access to can have long-term negative (7) Juvenile justice system or and success in learning through racially, consequences. Data from the same year correctional facilities. ethnically, culturally, and linguistically show that African American female (8) Adult learning; and inclusive pedagogical practice in students represented 7.4 percent of the (b) That are designed to examine the educator preparation programs and total female enrollment but accounted sources of inequities related to, and professional development programs so for 13.3 percent of female students who that educators are better prepared to receive one or more out-of-school 8 www.apa.org/ed/resources/racial- address bias in their classrooms and disparities.pdf. create inclusive, supportive, equitable, 5 nces.ed.gov/pubsearch/ 9 Snapp, S. D., & Russell, S. T. (2016). Discipline pubsinfo.asp?pubid=2020125. disparities for LGBTQ youth: Challenges that and identity-safe learning environments 6 http://www.pnas.org/content/116/17/ perpetuate disparities and strategies to overcome for their students. 8255.abstract. them. In Inequality in school discipline (pp. 207– 7 2017–18 Civil Rights Data Collection, released 223). Palgrave Macmillan, New York. 12 All strategies to increase racial diversity of October 2020, updated May 2021, is available at 10 https://files.eric.ed.gov/fulltext/EJ990114.pdf. educators must comply with non-discrimination www2.ed.gov/about/offices/list/ocr/docs/crdc-2017- 11 learningpolicyinstitute.org/sites/default/files/ requirements, including Title VI of the Civil Rights 18.html. product-files/CRDC_Teacher_Access_REPORT.pdf. Act of 1964.

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(6) Using technology to enable (D) Alignment with an existing public educators of color share the classroom. evidence-based interventions to support diversity plan or diversity needs Although no single factor is wholly student learning in the classroom or assessment. responsible for these findings, research support supplemental activities that (E) Consideration of school suggests that teachers of color are more extend learning time and increase assignment or admissions policies that likely to have higher academic student engagement and, where are designed to promote socioeconomic expectations for students with whom possible, increase parent engagement. diversity and give preference to students they share a cultural background.17 18 (7) Creating more equitable and from low-income backgrounds or Teachers of color may also be more adequate approaches to school funding. students residing in neighborhoods likely to address issues of racism in (8) Expanding access to high-quality experiencing concentrated poverty. their schools, by, for example, early learning, including in school- (iii) Establishing or expanding supporting efforts to break down based and community-based settings. schools, as well as programs within negative stereotypes and prepare all (9) Establishing, expanding, or schools, that are designed to attract and students to live and work in a 19 improving learning environments, foster meaningful interactions among multiracial society. Teachers of color which includes early learning, for substantial numbers of students from may also be drawn to working with multilanguage learners, and increasing different racial and/or socioeconomic students of color and it has been noted public awareness about the benefits of backgrounds, such as magnet schools. that ‘‘three in four teachers of color fluency in more than one language and (iv) Developing evidence related to, or work in the quartile of schools serving 20 how the coordination of language providing technical assistance on, the most students of color nationally’’. development in the school and the evidence-based policies or strategies Because teachers of color are more home improves student outcomes for designed to increase racial and likely to teach in these schools, which multilanguage learners. socioeconomic diversity in educational often also have difficulty hiring (10) Establishing, expanding, or settings. adequate numbers of qualified teachers, improving the engagement of Proposed Priority 3—Supporting a increasing educator diversity can play a Diverse Educator Workforce and critical role in addressing teacher underserved community members 21 (including underserved students) in Professional Growth to Strengthen shortages. informing and making decisions that Student Learning. Effective teachers, including 22 influence policy and practice at the Background: experienced teachers who are fully 23 school, district, or State level by In Proposed Priority 3, the certified, make significant elevating their voices and their Department recognizes that diverse, contributions to student academic 24 25 perspectives and providing them with well-prepared, and well-supported outcomes. Despite the importance of access to opportunities for leadership educators play a critical role in ensuring these characteristics, there is significant (e.g., establishing student government equity in our education system and inequity in students’ access to well- programs)). student success and emphasizes the qualified, experienced, and effective importance of promoting the continued (11) Improving the quality of development and growth of educators, 17 educational programs in juvenile justice Ferguson, Ronald. ‘‘Teachers’ Perceptions and including through leadership Expectations and the Black-White Test Score Gap,’’ facilities (such as detention facilities opportunities. It is also important that Urban Education, 38 (2003), 460–507. and secure and non-secure placements) 18 the diversity of our educator workforce Gersheson, Seth, Stephen Holt, and Nicholas or adult correctional facilities. Papageorge. ‘‘Who Believes in Me? The Effect of reflect the diversity of our Nation. A (12) Supporting re-entry of, and Student-Teacher Demographic Match on Teacher diverse educator workforce benefits all Expectations,’’ Economics of Education Review, 52, improving long-term outcomes for, students, and educator diversity in (2016), 209–224. youth and adults after release from particular can improve school-related 19 Villegas, Ana Marı´a, and Jacqueline Jordan correctional facilities by linking youth outcomes for students of color. Higher Irvine. ‘‘Diversifying the Teaching Force: An Examination of Major Arguments,’’ The Urban or adults to appropriate support, levels of student achievement,13 education, or workforce training Review, 42 (2010), 175–192. enrollment in more rigorous courses,14 20 https://learningpolicyinstitute.org/sites/ programs. increased referrals to gifted and talented default/files/product-files/Diversifying_Teaching_ (13) Increasing student racial or programs,15 and reductions in Profession_REPORT_0.pdf. 21 socioeconomic diversity at multiple exclusionary discipline 16 have all been Villegas, Ana Marı´a, and Jacqueline Jordan levels, through one or more of the Irvine. noted when students of color and 22 Kini, Tara, and Podolsky, Anne. (2016). Does following: teaching experience increase teacher effectiveness? (i) Using high-quality data collection 13 Egalite, Anna, Brian Kisida, and Marcus A. A review of the research. Palo Alto, CA: Learning methods to identify racial and Winters. ‘‘Representation in the Classroom: The Policy Institute. https://learningpolicyinstitute.org/ socioeconomic stratification, trends in Effect of Own-race Teachers on Student product/does-teaching-experience-increase-teacher- Achievement,’’ Economics of Education Review, 45 effectiveness-review-research. and contributors to stratification, and (April 2015), 44–52. 23 Darling-Hammond, Linda, Deborah Holtzman, barriers to racial and socioeconomic 14 Grissom, Jason, Sarah Kabourek, and Jenna Sue Jin Gatlin, and Julian Vasquez Heilig. (2005). diversity. Kramer. ‘‘Exposure to Same-race or Same-ethnicity Does teacher preparation matter? Evidence about (ii) Developing or implementing Teachers and Advanced Math Course-taking in teacher certification, Teach for America, and High School: Evidence from a Diverse Urban teacher effectiveness. Education Policy Analysis evidence-based policies or strategies District,’’ Teachers College Record, 122 (2020), 1– Archives, 13(42). DOI: https://doi.org/10.14507/ that include one or more of the 42. epaa.v13n42.2005. following: 15 Grissom, Jason, and Christopher Redding. 24 Chetty, Raj, John N. Friedman, and Jonah E. (A) Ongoing, robust family and ‘‘Discretion and Disproportionality: Explaining the Rockoff. ‘‘Measuring the Impacts of Teachers II: Underrepresentation of High-achieving Students of Teacher Value-Added and Student Outcomes in community involvement. Color in Gifted Programs,’’ AERA Open, 2 (2016), Adulthood,’’ American Economic Review, 104(9) (B) Intra- or inter-district or regional 1–15. (2014), 2633–2769. coordination. 16 Lindsay, Constance, and Cassandra Hart. 25 Clotfelter, Charles T., Helen F. Ladd, and Jacob ‘‘Exposure to Same-race Teachers and Student L. Vigdor. (2007). How and why do teacher (C) Cross-agency collaboration, such Disciplinary Outcomes for Black Students in North credentials matter for student achievement? (NBER as with housing or transportation Carolina,’’ Educational Evaluation and Policy Working Paper 12828). Cambridge, MA: National authorities. Analysis, 39 (2017), 485–510. Bureau of Economic Research.

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teachers,26 particularly for students practices and classroom features, such culturally, and linguistically inclusive from low-income backgrounds, students as instructional techniques, classroom pedagogy. of color, and children or students with materials and resources, and classroom (vi) Building meaningful and trusting disabilities. seating. relationships with students’ families to As such, it is essential to attract, (e) Implementing loan forgiveness or support in-home, community-based, support, and retain a diverse, well- service-scholarship programs for and in-school learning. qualified, experienced, and effective educators based on completing service (vii) For school leaders, improving pool of educators and the first step in obligation requirements. mastery of essential instructional and that effort is to ensure that candidates (f) Building or expanding high- organizational leadership skills have access to high-quality poverty school districts’ (as may be designed to improve teacher and comprehensive preparation programs defined in the program statute or student learning. that have high standards and provide regulations) capacity to hire, support, (viii) Supporting teachers in creating necessary supports for successful and retain an effective and diverse safe, healthy, inclusive, and productive completion. It is equally important to educator workforce, through one or classroom environments. support and retain qualified and more of the following: (2) Developing and implementing effective educators through practices (1) Providing beginning educators high-quality assessments (as defined in such as mentoring early career teachers; with evidence-based mentoring or this notice) of and for student learning improving working conditions; creating induction programs. (including curriculum-aligned and or enhancing opportunities for (2) Adopting or expanding performance-based tools aligned with professional growth, including through comprehensive, strategic career and State grade-level content standards or, leadership opportunities; providing compensation systems that provide for career and technical education, competitive compensation and competitive compensation and include relevant industry standards) and opportunities for educators to take on opportunities for educators to serve as strategies that allow educators to use the leadership roles; and creating mentors and instructional coaches, or to data from assessments to inform conditions for successful teaching and take on additional leadership roles and instructional design and classroom learning. responsibilities for which educators are practices that meet the needs of all This proposed priority focuses on compensated. students, with a focus on underserved strengthening teacher recruitment, (3) Developing data systems, students, and providing high-quality selection, preparation, support, timelines, and action plans for professional development to support development, effectiveness, recognition, promoting inclusive and bias-free educators in implementing these and retention in ways that are consistent human resources practices that promote strategies. with the Department’s policy goals of and support development of educator (h) Increasing educator capacity to supporting teachers as the professionals and school leader diversity. collaborate with diverse stakeholders to they are and improving outcomes for all (g) Supporting effective instruction carry-out rapid, iterative cycles of students by ensuring that students from and building educator capacity through evaluation, such as design-based low-income backgrounds, students of one or more of the following: research, improvement science, or other color, students with disabilities, English (1) Providing high-quality job- rapid cycle techniques, to design, learners, and other underserved embedded professional development develop, or improve promising students have equal access to well- opportunities focused on one or more of innovations that are designed to benefit qualified, experienced, diverse, and the following: underserved students. effective educators. (i) Designing and delivering Proposed Priority 4— Meeting Student Proposed Priority: instruction in ways that are engaging, Social, Emotional, and Academic Projects that are designed to increase effectively integrate technology, and the proportion of well-prepared, Needs. provide students with opportunities to Background: The ongoing effects of diverse, and effective educators serving think critically and solve complex students, with a focus on underserved the dual crises of COVID–19 and problems, apply their learning in systemic racism have affected students, through one or more of the authentic and real-world settings, following priority areas: communities across this country. communicate and collaborate Countless students have been exposed (a) Increasing the number of diverse effectively, and develop academic educator candidates who have access to to trauma and disruptions in learning mindsets, including through project- and have experienced disengagement an evidence-based comprehensive based, work-based, or other experiential educator preparation program. from school and peers, negatively learning opportunities. (b) Increasing the number of teachers impacting their mental health and well- (ii) Supporting students and their with certification in an educator being. While all students’ overall levels families at key transitional stages in shortage area, or advanced certifications of wellness have been affected, students their education as they enter into one or from nationally recognized professional of color and other underserved students more of the following: organizations. have experienced a disproportionate (c) Promoting knowledge of universal (A) Elementary school. burden of the pandemic.27 Targeted (B) Middle school. design for learning in educator supports, including those that leverage (C) High school. technology, are needed for students who preparation. (D) Postsecondary education. (d) Integrating universal design for have been disproportionately affected (E) Work. learning principles in pedagogical (iii) Meeting the needs of English 27 learners. Kuhfeld, M., Soland, J., Tarasawa, B., Johnson, 26 Isenberg, Eric, Jeffrey Max, Philip Gleason, A., Ruzek, E., & Liu, J. (2020). Projecting the Matthew Johnson, Jonah Deutsch, and Michael (iv) Meeting the needs of children or potential impact of COVID–19 school closures on Hansen (2016). Do Low-Income Students Have students with disabilities, including academic achievement. Educational Researcher, Equal Access to Effective Teachers? Evidence from children or students with the most 49(8), 549–565. See also Weissman, S. (April 29, 26 Districts (NCEE 2017–4007). Washington, DC: 2021. Steep Enrollment Declines this Spring. Inside National Center for Education Evaluation and significant disabilities. Higher ED. https://www.insidehighered.com/news/ Regional Assistance, Institute of Education (v) Addressing inequities and bias and 2021/04/29/spring-brings-even-steeper-enrollment- Sciences, U.S. Department of Education. developing racially, ethnically, declines.

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by the pandemic. Research has will help narrow disparities in financial community-based settings, such as demonstrated that, in elementary and security and broaden economic apprenticeships, pre-apprenticeships, secondary schools, children learn, grow, opportunity. work-based learning and service and achieve at higher levels in safe and With appropriate and effective learning, and engaging in civic supportive environments, and in the supports, students will be more likely to activities, that allow them to apply their care of responsive adults they can stay engaged in school, experience knowledge and skills, strengthen their trust.28 It is critical, then, to prioritize social-emotional wellness and academic employability skills, and access career support for students’ social, emotional, success, and experience positive long- exploration opportunities. and academic needs, not only to benefit term outcomes in both school and life.33 (c) Creating a positive, inclusive, and students’ social-emotional wellness, but Proposed Priority: identity-safe climate at institutions of also to support their academic success Projects that are designed to improve higher education through one or more of and prepare them for their future. students’ social, emotional, academic, the following activities: Because mounting evidence suggests and career development, with a focus on (1) Fostering a sense of belonging and that supporting social-emotional underserved students, through one or inclusion for underserved students. learning (SEL) can contribute to overall more of the following priority areas: (2) Implementing evidence-based student development,29 30 31 educators (a) Developing and supporting practices for advancing student success need access to tools, supports, and other educator and school capacity to support for underserved students. resources focused on SEL supports that social and emotional learning and (3) Providing evidence-based can improve effective instructional development that— professional development opportunities practices. Integrating evidence-based (1) Fosters skills and behaviors that designed to reduce bias and build asset- instructional strategies and approaches enable academic progress developed based mindsets for faculty and staff on proven to support SEL in the classroom through explicit instruction in social, campus, including high-quality racially, has the potential to yield important emotional, and cognitive skills; ethnically, culturally, and linguistically benefits in students’ social, emotional, (2) Identifies and addresses inclusive practices for students, faculty, and academic growth—and avert conditions in the learning environment, staff, and community. potential negative outcomes for that may negatively impact social and (4) Developing any necessary updates students. For example, students with emotional well-being for underserved to the institution’s harassment policies unmet social and emotional needs can students, including conditions that and procedures to ensure they apply to struggle with social interactions and affect physical safety; and harassment that occurs in the engagement during instructional and (3) Is trauma-informed, such as institution’s educational programs and social times during the school day. In addressing exposure to community- activities, including during hybrid and turn, this can diminish students’ sense based violence and trauma specific to distance education. of social and academic connection, military- or veteran-connected students (d) Providing multi-tiered systems of leading to chronic absenteeism and (as defined in this notice). supports to meet students’ academic, antisocial behavior in elementary and (b) Creating supportive, positive, and social, and emotional needs, including 32 secondary education. identity-safe education or work-based by offering evidence-based trauma- The world of work is also rapidly settings that provide racially, ethnically, informed practices, to address learning shifting, and the pre-existing equity culturally, and linguistically inclusive barriers both in and out of the gaps in access to high-quality career and instruction, through one or more of the classroom, that enable healthy technical education-–including dual following activities: development and respond to students enrollment, industry-recognized (1) Developing trusting relationships needs and which may include credentials, and work-based learning— between students, educators, families, professional development for educators have been further exacerbated by the and community partners, including on avoiding deficit-based approaches. COVID–19 pandemic. Creating more engaging underserved students. (e) Developing or implementing equitable systems of multiple, high- (2) Providing high-quality policies and practices that prevent or quality, flexible college and career professional development opportunities reduce significant disproportionality on pathways that align our schools and designed to reduce bias, increase the basis of race or ethnicity with postsecondary learning with the engagement and belonging, and build respect to the identification, placement, demands of the 21st century economy asset-based mindsets for adults working and disciplining of children or students in and throughout schools. with disabilities. 28 Reyes, M.R., Brackett, M.A., Rivers, S.E., White, (f) Providing all students access to M., & Salovey, P. (2012). Classroom emotional (3) Engaging parents, caregivers, climate, student engagement, and academic students, and community members as physically healthy learning achievement. Journal of educational psychology, full partners in school climate review environments, such as energy-efficient 104(3), 700. spaces, for one or more of the following: 29 and improvement efforts. Cross Francis, D., Liu, J., Bharaj, P.K., & Eker, (4) Developing and implementing (1) Early learning environments. A. (2019). ‘‘Integrating Social-emotional and (2) Elementary or secondary schools. inclusive and culturally informed Academic Development in Teachers’ Approaches to (3) Out-of-school time learning Educating Students,’’ Policy Insights from the discipline policies and addressing spaces. Behavioral and Brain Sciences, 6(2), 138–146. disparities in school discipline policy 30 Swanson, E., Melguizo, T., & Martorell, P. (4) Postsecondary institutions. (2020). Examining the Relationship between by identifying and addressing the root (g) Providing students equitable Psychosocial and Academic Outcomes in Higher causes of those disparities, including by access to social workers, psychologists, Education: A Descriptive Analysis. providing training and resources to counselors, nurses, or mental health (EdWorkingPaper: 20–286). support educators. 31 professionals and other integrated Robbins, S.B., Lauver, K., Le, H., Davis, D., (5) Supporting students to engage in Langley, R., & Carlstrom, A. (2004). Do Psychosocial services and supports, which may and Study Skill Factors Predict College Outcomes? real-world, hands-on learning in include in early learning environments. A Meta-Analysis. Psychological Bulletin, 130(2), (h) Preparing educators to implement 33 261–288. Durlak, J.A., Domitrovich, C.E., Weissberg, R.P., project-based or experiential learning 32 Darling-Hammond, Linda, and Cook-Harvey, C. and Gullotta, T.P. (Eds.). (2015). Handbook of social (2018). Educating the Whole Child: Improving and emotional learning: Research and practice. New opportunities for students to strengthen School Climate to Support Student Success. LPI York: Guilford. their metacognitive skills, self-direction,

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self-efficacy, competency, or motivation, affordability gap.34 Potential strategies educational system to obtain a regular including through instruction that: for addressing these challenges as part high school diploma, or its recognized Connects to students’ prior knowledge of a broader structure supporting equivalent for adult learners; enroll in and experience; provides rich, engaging, student success could include: and complete community college, complex, and motivating tasks; or offers Reducing time to degree and credential; college, or career and technical training; opportunities for collaborative learning. improving transferability between or obtain basic and academic skills that (i) Creating comprehensive community colleges and four year they need to succeed in community schoolwide frameworks (such as small institutions; supporting degree and college, college, career and technical schools or learning communities, credential completion, particularly education, and/or the workforce. advisory systems, or looping educators) among underserved students; providing (h) Supporting the development and that support strong and consistent financial and non-financial implementation of high-quality and student and educator relationships. comprehensive supports; and increasing accessible learning opportunities, (j) Fostering partnerships, including transparency about the price of college, including learning opportunities that across government agencies (e.g., typical levels of student indebtedness, are accelerated or hybrid online; credit- housing, human services or employment and median earnings. bearing; work-based; and flexible for agencies), LEAs, community-based Proposed Priority: working students. organizations and postsecondary Projects that are designed to increase (i) Supporting evidence-based education intuitions, to provide postsecondary access, affordability, practices in career and technical comprehensive services to children, success, and completion for education and ensuring equitable access students and families that support underserved students by addressing one to and successful completion of high- student social, emotional, mental health or more of the following priority areas: quality programs, credentials, or and academic needs. (a) Projects implemented by or in degrees. Proposed Priority 5—Increasing partnership with one or more of the (j) Supporting the development or Postsecondary Education Access, following entities: implementation of evidence-based Affordability, Completion, and Post- (1) Community colleges (as defined in strategies to promote students’ Enrollment Success. this notice). development of the necessary Background: (2) Historically Black colleges and knowledge and skills necessary for Postsecondary education, including universities (as defined in this notice).). success in the workforce and civic life. career and technical education, is (3) Tribal colleges and universities (as (k) Connecting children or students increasingly necessary for individuals to defined in this notice).). with disabilities, adults with compete in a global economy. Therefore, (4) Minority-serving institutions (as disabilities, and disconnected youth to the Nation must boost completion rates defined in this notice).). resources designed to improve at all levels of postsecondary education. (b) Increasing postsecondary independent living and the achievement This proposed priority supports projects attainment and reducing the cost of of employment outcomes, which may that prepare students, particularly college by creating clearer pathways for include the provision of pre- underserved students, for college and students between institutions and employment transition services, the workforce; enroll more students in making transfer of course credits more transition and other vocational postsecondary education and help them seamless and transparent. rehabilitation services under the (c) Increasing the number and succeed; and make college more Vocational Rehabilitation program, and proportion of underserved students who affordable. This proposed priority also transition and related services under supports career and technical education enroll in and complete postsecondary education programs, which may include IDEA. that connects with and leads to (l) Providing students access to strategies related to college preparation, postsecondary education programs of international education, education in awareness, application, selection, study and provides students with the cultural and global competencies, and knowledge and skills to succeed in the advising, counseling and enrollment. (d) Reducing the net price or debt-to- foreign language training in preparation workforce, earn a competitive wage, and earnings ratio for underserved students for global competitiveness. pursue lifelong learning and career and Proposed Priority 6—Strengthening who enroll in or complete college, other economic advancement opportunities. Cross-Agency Coordination and postsecondary education, or career and With this proposed priority, we also Community Engagement to Advance technical education programs. aim to encourage adult learners to (e) Establishing a system of high- Systemic Change. reengage in learning, by meeting them quality data, such as data on Background: Schools and campuses are often the where they are and preparing them to persistence, retention, and completion, center of the community for students succeed in postsecondary coursework for transparency, accountability, and and their families, providing students such as through adult education and institutional improvement. literacy activities that will help increase (f) Supporting the development and with the resources and referrals they their employability. implementation of student success need to meet their full potential. In addition to supporting projects that programs that integrate multiple Ensuring that students and families prepare students for careers and college, comprehensive and evidence-based have access to nutritious food, housing, we must make it easier for all students services or initiatives, such as academic health services, employment/financial to afford postsecondary education, advising, structured/guided pathways, services, and other community including career and technical career services, programs to meet basic resources is pivotal to ensuring success education, to complete their credential needs, such as housing, childcare and in the classroom, which in turn uplifts in a timely manner, and to understand transportation, student financial aid, community vitality. These needs are the returns to their program of study. and access to technological devices. best met through cross-agency The average net price of a college (g) Increasing the number of coordination and partnerships between education has risen for many individuals who return to the schools, campuses, and other undergraduates, particularly full-time organizations in the community. In this students attending four-year public 34 https://nces.ed.gov/programs/coe/indicator_ way, effective partnerships can make it colleges and universities, widening the cua.asp. easier for families to have various needs

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met by the school and support systemic, that meet the priority (34 CFR enrolled in (or at risk of dropping out of) long-term change. Numerous programs 75.105(c)(3)). an educational institution. require or emphasize the importance of Competitive preference priority: Early learning means any (a) State- such partnerships in improving Under a competitive preference priority, licensed or State-regulated program or outcomes for students and their we give competitive preference to an provider, regardless of setting or families. This proposed priority would application by (1) awarding additional funding source, that provides early care encourage partnerships with other points, depending on the extent to and education for children from birth to agencies or entities and support cross- which the application meets the priority kindergarten entry, including, but not agency, and cross-community (34 CFR 75.105(c)(2)(i)); or (2) selecting limited to, any program operated by a partnerships at the State and local an application that meets the priority child care center or in a family child levels. over an application of comparable merit care home; (b) program funded by the Proposed Priority: that does not meet the priority (34 CFR Federal Government or State or local Projects that are designed to take a 75.105(c)(2)(ii)). educational agencies (including any systemic approach to improving Invitational priority: Under an IDEA-funded program); (c) Early Head outcomes for underserved students in invitational priority we are particularly Start and Head Start program; (d) non- one or more of the following priority interested in applications that meet the relative child care provider who is not areas: priority. However, we do not give an otherwise regulated by the State and (a) Coordinating efforts with Federal, application that meets the priority a who regularly cares for two or more State, or local agencies, or community- preference over other applications (34 unrelated children for a fee in a based organizations that support CFR 75.105(c)(1)). provider setting; and (e) other program students, to address one or more of the that may deliver early learning and following: Proposed Definitions development services in a child’s home, (1) Food assistance. Background: such as the Maternal, Infant, and Early (2) Energy. We propose specific definitions to Childhood Home Visiting Program; (3) Climate change. promote a shared understanding of the Early Head Start; and Part C of IDEA. English learner means an individual (4) Housing. scope of activities that could be who is an English learner as defined in (5) Homelessness. supported by these priorities. Under the (6) Transportation. proposed definition of ‘‘underserved section 8101(20) of the Elementary and (7) Health. students,’’ the Secretary may include Secondary Education Act of 1965, as (8) Childcare. the entire definition within a grant amended, or an individual who is an (9) School diversity. program or one or more of the subparts English language learner as defined in (10) Justice policy. of the definition that are most relevant section 203(7) of the Workforce (11) Workforce development. for the grant program. Innovation and Opportunity Act. Evidence-based has the meaning (12) Technology. Proposed Definitions: ascribed to it in 34 CFR 77.1 or the (13) Public safety. We propose the following definitions (13) Community violence. ESEA, as applicable. for use with the proposed priorities: High-quality assessments means (14) Social services. Children or students with disabilities diagnostic, formative, or summative (15) Voting access and registration. means children with disabilities as assessments that are valid and reliable (16) Another key field-initiated focus defined in the Individuals with for the purposes for which they are used area. Disabilities Education Act (IDEA) or and that provide relevant and timely (b) Conducting community needs and students with disabilities, as defined at information to help educators and asset mapping to identify existing section 7(37) of the Rehabilitation Act of parents or caregivers support students. programs that can be leveraged to 1973 (29 U.S.C. 705(37)) 705(37)). Historically Black colleges and advance systemic change and programs Community college means ‘‘junior or universities means colleges and or initiatives that need to be community college’’ as defined in universities that meet the criteria set out implemented. section 312(f) of the Higher Education in 34 CFR 608.2. (c) Establishing cross-agency Act of 1965, as amended (HEA). Military- or veteran-connected student partnerships, or community-based Competency-based education (also means one or more of the following: partnerships with local nonprofit called proficiency-based or mastery- (a) A child participating in an early organizations, businesses, philanthropic based learning) means learning based on learning program, a student enrolled in organizations, or others, to meet family knowledge and skills that are preschool through grade 12, or a student well-being needs. transparent and measurable. Progression enrolled in career and technical (d) Identifying, documenting, and is based on demonstrated mastery of education or postsecondary education disseminating policies, strategies, and what students are expected to know who has a parent or guardian who is a best practices on effective approaches to (knowledge) and be able to do (skills), member of the uniformed services (as creating systemic change through cross- rather than seat time or age. defined by 37 U.S.C. 101, in the Army, agency, or community-based Culturally and linguistically inclusive Navy, Air Force, Marine Corps, Coast coordination and collaboration. means pedagogical practices that Guard, Space Force, National Guard, Types of Priorities: address inequities in access to and Reserves, National Oceanic and When inviting applications for a success in school by recognizing and Atmospheric Administration, or Public competition using one or more valuing all students’ identities, cultures, Health Service or is a veteran of the priorities, we designate the type of each and potential. uniformed services with an honorable priority as absolute, competitive Disconnected youth means an discharge (as defined by 38 U.S.C. preference, or invitational through a individual, between the ages 14 and 24, 3311). notice in the Federal Register. The who may be from a low-income (b) A student who is a member of the effect of each type of priority follows: background, experiences homelessness, uniformed services, a veteran of the Absolute priority: Under an absolute is in foster care, is involved in the uniformed services, or the spouse of a priority, we consider only applications justice system, or is not working or not service member or veteran.

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(c) A child participating in an early Universal design for learning has the permitted by law, Executive Order learning program, a student enrolled in meaning ascribed it in section 103(24) of 13563 requires that an agency— preschool through grade 12, or a student the HEA. (1) Propose or adopt regulations only enrolled in career and technical Final Priorities and Definitions: on a reasoned determination that their education or postsecondary education We will announce the final priorities benefits justify their costs (recognizing who has a parent or guardian who is a and definitions in a document that some benefits and costs are difficult veteran of the uniformed services (as published in the Federal Register. We to quantify); defined by 37 U.S.C. 101). will determine the final priorities and (2) Tailor its regulations to impose the Minority-serving institution (MSI) definitions after considering responses least burden on society, consistent with means an institution that is eligible to to the proposed priorities and obtaining regulatory objectives and receive assistance under sections 316 definitions and other information taking into account—among other things through 320 of part A of title III, under available to the Department. This and to the extent practicable—the costs part B of title III, or under title V of the document does not preclude us from of cumulative regulations; HEA. proposing additional priorities, (3) In choosing among alternative Tribal College or University has the requirements, definitions, or selection regulatory approaches, select those meaning ascribed it in section 316(b)(3) criteria, subject to meeting applicable approaches that maximize net benefits of the HEA. rulemaking requirements. (including potential economic, Underserved student means a student Note: This document does not solicit environmental, public health and safety, (which may include children in early applications. In any year in which we and other advantages; distributive learning environments, students in K– choose to use these priorities and impacts; and equity); 12 programs, students in postsecondary definitions, we invite applications (4) To the extent feasible, specify education or career and technical through a notice inviting applications in performance objectives, rather than the education, and adult learners, as the Federal Register. behavior or manner of compliance a appropriate) in one or more of the Executive Orders 12866 and 13563 regulated entity must adopt; and following subgroups: (5) Identify and assess available (a) A student who is living in poverty Regulatory Impact Analysis alternatives to direct regulation, or is served by schools with high Under Executive Order 12866, the including economic incentives—such as concentrations of students living in Office of Management and Budget user fees or marketable permits—to poverty. (OMB) must determine whether this encourage the desired behavior, or (b) A student of color. regulatory action is ‘‘significant’’ and, provide information that enables the (c) A student who is a member of a public to make choices. federally recognized Indian Tribe. therefore, subject to the requirements of the Executive order and subject to Executive Order 13563 also requires (d) An English learner. an agency ‘‘to use the best available (e) A child or student with a review by OMB. Section 3(f) of techniques to quantify anticipated disability. Executive Order 12866 defines a present and future benefits and costs as (f) A disconnected youth. ‘‘significant regulatory action’’ as an accurately as possible.’’ The Office of (g) A migrant student. action likely to result in a rule that (h) A student experiencing may— Information and Regulatory Affairs of homelessness or housing insecurity. (1) Have an annual effect on the OMB has emphasized that these (i) A lesbian, gay, bisexual, economy of $100 million or more, or techniques may include ‘‘identifying transgender, queer, or intersex adversely affect a sector of the economy, changing future compliance costs that (LGBTQ+) student. productivity, competition, jobs, the might result from technological (j) A student who is in foster care. environment, public health or safety, or innovation or anticipated behavioral (k) A student without documentation State, local, or Tribal governments or changes.’’ of immigration status. communities in a material way (also We are issuing these proposed (l) A pregnant, parenting, or referred to as an ‘‘economically priorities and definitions only on a caregiving student. significant’’ rule); reasoned determination that their (m) A student impacted by the justice (2) Create serious inconsistency or benefits would justify their costs. In system, including a formerly otherwise interfere with an action taken choosing among alternative regulatory incarcerated student. or planned by another agency; approaches, we selected those (n) A student who is the first in their (3) Materially alter the budgetary approaches that would maximize net family to attend postsecondary impacts of entitlement grants, user fees, benefits. Based on an analysis of education. or loan programs or the rights and anticipated costs and benefits, we (o) A student enrolling in or seeking obligations of recipients thereof; or believe that these proposed priorities to enroll in postsecondary education for (4) Raise novel legal or policy issues and definitions are consistent with the the first time at the age of 20 or older. arising out of legal mandates, the principles in Executive Order 13563. (p) A student who is working full- President’s priorities, or the principles We also have determined that this time while enrolled in postsecondary stated in the Executive order. regulatory action does not unduly education. This proposed regulatory action is a interfere with State, local, and Tribal (q) A student who is enrolled in or is significant regulatory action subject to governments in the exercise of their seeking to enroll in postsecondary review by OMB under section 3(f) of governmental functions. education who is eligible for a Pell Executive Order 12866. In accordance with these Executive Grant. We have also reviewed this proposed orders, the Department has assessed the (r) An adult student in need of regulatory action under Executive Order potential costs and benefits, both improving their basic skills or an adult 13563, which supplements and quantitative and qualitative, of this student with limited English explicitly reaffirms the principles, regulatory action. The potential costs proficiency. structures, and definitions governing are those resulting from statutory (s) A student performing significantly regulatory review established in requirements and those we have below grade level. Executive Order 12866. To the extent determined as necessary for

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administering the Department’s intergovernmental partnership and a view this document, as well as all other programs and activities. strengthened federalism. The Executive documents of the Department published order relies on processes developed by in the Federal Register, in text or Potential Costs and Benefits State and local governments for Portable Document Format (PDF). To The proposed priorities and coordination and review of proposed use PDF, you must have Adobe Acrobat definitions would impose minimal costs Federal financial assistance. Reader, which is available free at the on entities that would receive assistance This document provides early site. through the Department’s discretionary notification of our specific plans and You may also access documents of the grant programs. Additionally, the actions for this program. Department published in the Federal benefits of implementing the proposed Regulatory Flexibility Act Certification Register by using the article search priorities and definitions outweigh any feature at www.federalregister.gov. associated costs because it would result The Secretary certifies that this Specifically, through the advanced in the Department’s discretionary grant proposed regulatory action would not search feature at this site, you can limit programs encouraging the submission of have a significant economic impact on your search to documents published by a greater number of high-quality a substantial number of small entities. the Department. applications and supporting activities The U.S. Small Business Administration that reflect the Administration’s Size Standards define proprietary Miguel Cardona, educational priorities. institutions as small businesses if they Secretary of Education. Application submission and are independently owned and operated, [FR Doc. 2021–14003 Filed 6–29–21; 8:45 am] participation in a discretionary grant are not dominant in their field of BILLING CODE 4000–01–P program are voluntary. The Secretary operation, and have total annual believes that the costs imposed on revenue below $7,000,000. Nonprofit applicants by the proposed priorities institutions are defined as small entities LIBRARY OF CONGRESS and definitions would be limited to if they are independently owned and paperwork burden related to preparing operated and not dominant in their field Copyright Royalty Board an application for a discretionary grant of operation. Public institutions are program that is using a priority in its defined as small organizations if they 37 CFR Part 381 competition. Because the costs of are operated by a government carrying out activities would be paid for overseeing a population below 50,000. [Docket No. 21–CRB–0002–PBR (2023– with program funds, the costs of The small entities that this proposed 2027)] implementation would not be a burden regulatory action would affect are early Determination of Rates and Terms for for any eligible applicants, including learning providers, school districts, Public Broadcasting (PB IV) small entities. IHEs, nonprofit organizations, and for- profit organizations. Of the impacts we Clarity of the Regulations AGENCY: Copyright Royalty Board, estimate accruing to grantees or eligible Library of Congress. Executive Order 12866 and the entities, all are voluntary and related ACTION: Proposed rule. Presidential memorandum ‘‘Plain mostly to an increase in the number of Language in Government Writing’’ applications prepared and submitted SUMMARY: The Copyright Royalty Judges require each agency to write regulations annually for competitive grant publish for comment proposed that are easy to understand. competitions. Therefore, we do not regulations that set rates and terms for The Secretary invites comments on believe that the proposed priorities and the use of certain copyrighted works by how to make the proposed priorities and definitions would significantly impact certain public broadcasting entities for definitions easier to understand, small entities beyond the potential for the period beginning January 1, 2023, including answers to questions such as increasing the likelihood of their and ending December 31, 2027. the following: applying for, and receiving, competitive DATES: Comments and objections, if any, • Are the requirements in the grants from the Department. are due no later than July 30, 2021. proposed regulations clearly stated? • Do the proposed regulations contain Paperwork Reduction Act ADDRESSES: You may send comments, technical terms or other wording that The proposed priority and definitions identified by docket number 21–CRB– interferes with their clarity? do not contain any information 0002–PBR (2023–2027), online through • Would the proposed regulations be collection requirements. eCRB at https://app.crb.gov. easier to understand if we divided them Accessible Format: On request to the Instructions: To send your comment into more (but shorter) sections? program contact person listed under FOR through eCRB, if you do not have a user • Could the description of the FURTHER INFORMATION CONTACT, account, you will first need to register proposed regulations in the individuals with disabilities can obtain for an account and wait for your SUPPLEMENTARY INFORMATION section of this document in an accessible format. registration to be approved. Approval of this preamble be more helpful in The Department will provide the user accounts is only available during making the proposed regulations easier requestor with an accessible format that business hours. Once you have an to understand? If so, how? may include Rich Text Format (RTF) or approved account, you can only sign in To send any comments that concern text format (txt), a thumb drive, an MP3 and file your comment after setting up how the Department could make the file, braille, large print, audiotape, or multi-factor authentication, which can proposed priorities and definitions compact disc, or other accessible format. be done at any time of day. All easier to understand, see the Electronic Access to This Document: comments must include the Copyright instructions in the ADDRESSES section. The official version of this document is Royalty Board name and the docket Intergovernmental Review: This the document published in the Federal number for this proposed rule. All program is subject to Executive Order Register. You may access the official properly filed comments will appear 12372 and the regulations in 34 CFR edition of the Federal Register and the without change in eCRB at https:// part 79. One of the objectives of the Code of Federal Regulations at app.crb.gov, including any personal Executive order is to foster an www.govinfo.gov. At this site you can information provided.

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Docket: For access to the docket to There are two ways copyright owners petition to participate in the proceeding, read background documents or and public broadcasting entities 1 may but the National Association of College comments received, go to eCRB at negotiate rates and terms under the and University Business Officers https://app.crb.gov and perform a case section 118 statutory license. First, (NACUBO) and the American Council search for docket 21–CRB–0002–PBR copyright owners may negotiate rates on Education (ACE) support BMI’s (2023–2027). and terms with specific public proposal. Proposal at 4. FOR FURTHER INFORMATION CONTACT: broadcasting entities for the use of all of The Proposal states that the fees in Anita Blaine, CRB Program Specialist, at the copyright owners’ works covered by § 381.5(c)(2)(i) should be modified. See 202–707–7658 or [email protected]. the license. Section 118(b)(2) provides Id. at 3–4. The modified fees reflect ‘‘an SUPPLEMENTARY INFORMATION: that such license agreements ‘‘shall be annual cost-of-living increase based on given effect in lieu of any determination CPI, reflecting how increases were Background by the . . . Copyright Royalty Judges,’’ calculated in the joint proposals Section 118 of the Copyright Act, title provided that copies of the agreement submitted by BMI and ACE . . . and by 17 of the United States Code, establishes are submitted to the Judges ‘‘within 30 BMI and NACUBO’’ in prior a statutory license for the use of certain days of execution.’’ 17 U.S.C. 118(b)(2). proceedings. Id. at 4. copyrighted works in connection with Second, copyright owners and public The Judges solicit comments on noncommercial television and radio broadcasting entities may negotiate rates whether they should adopt the proposed broadcasting. Chapter 8 of the Copyright and terms for categories of copyrighted regulations as statutory license fees to Act requires the Copyright Royalty works and uses that would be binding be paid by certain public broadcasting Judges (‘‘Judges’’) to conduct on all owners and entities using the entities, namely, noncommercial proceedings every five years to same license and submit them to the educational radio stations licensed to determine the rates and terms for the Judges for approval. Section colleges or universities that are not section 118 license. 17 U.S.C. 801(b)(1), 801(b)(7)(A) of the Copyright Act members of NPR, for their performances 804(b)(6). Accordingly, the Judges authorizes the Judges to adopt rates and of copyrighted musical works in BMI’s commenced a proceeding in January terms negotiated by ‘‘some or all of the repertory, pursuant to 17 U.S.C. 118. 2021, by publishing notice of the participants in a proceeding at any time Comments and objections regarding commencement of the proceeding and a during the proceeding’’ provided they the proposed changes must be request that interested parties submit are submitted to the Judges for approval. submitted no later than July 30, 2021. petitions to participate. 86 FR 325 (Jan. This section provides that the Judges List of Subjects in 37 CFR Part 381 5, 2021). shall provide notice and an opportunity The Judges received petitions to to comment on the agreement to (1) Copyright, Music, Radio, Television, participate in the current proceeding those that would be bound by the terms, Rates. from The American Society of Authors, rates, or other determination set by the For the reasons set forth in the Composers and Publishers (ASCAP); agreement and (2) participants in the preamble, the Copyright Royalty Judges Broadcast Music, Inc. (BMI); Church proceeding that would be bound by the propose to amend 37 CFR part 381 as Music Publishers’ Association, Inc. terms, rates, or other determination set follows: (CMPA); Educational Media Foundation by the agreement. See section (EMF); Global Music Rights, LLC; 801(b)(7)(A). The Judges may decline to PART 381—USE OF CERTAIN National Religious Broadcasters adopt the agreement as a basis for COPYRIGHTED WORKS IN Noncommercial Music License statutory terms and rates for participants CONNECTION WITH Committee (NRBNMLC); David Powell; not party to the agreement if any NONCOMMERCIAL EDUCATIONAL Public Broadcasting Entities participant objects and the Judges BROADCASTING (Corporation for Public Broadcasting conclude that the agreement does not ■ (CPB), National Public Radio (NPR), and provide a reasonable basis for setting 1. The authority citation for part 381 Public Broadcasting Service (PBS)); statutory terms or rates. Id. continues to read as follows: SESAC Performing Rights, LLC On May 17, 2021, the Judges received Authority: 17 U.S.C. 118, 801(b)(1), 803. (SESAC); and The Harry Fox Agency a proposal from participant BMI ■ 2. Revise § 381.5(c)(2)(i) to read as LLC (HFA). regarding ‘‘statutory license fees to be follows: The Judges gave notice to all paid to BMI by noncommercial participants of the three-month educational radio broadcast stations § 381.5 Performance of musical negotiation period required by 17 U.S.C. licensed to colleges or universities that compositions by public broadcasting 803(b)(3) and directed that, if the are not affiliated with [NPR] for the entities licensed to colleges and participants were unable to negotiate a performance of copyrighted musical universities. settlement, they should submit Written works in BMI’s repertory’’ for the years * * * * * Direct Statements no later than 2023 through 2027. Proposal of (c) * * * September 10, 2021. Notice of Broadcast Music, Inc. of Rates and (2) For all such compositions in the Participants, Commencement of Terms for Colleges and Universities at 1 repertory of BMI, the royalty rates shall Voluntary Negotiation Period, and Case (May 17, 2021) (Proposal). No college be as follows: Scheduling Order (Feb. 9, 2021). radio station or related entity filed a (i) Music fees.

Number of full-time students 2023 2024 2025 2026 2027

Level 1 ... <1,000 ...... $390 $400 $410 $421 $432 Level 2 ... 1,000–4,999 ...... 451 463 475 487 500 Level 3 ... 5,000–9,999 ...... 619 635 652 669 686 Level 4 ... 10,000–19,999 ...... I 801 I 822 I 843 I 865 I 887

1 A ‘‘public broadcasting entity’’ is defined as a defined in section 397 of title 47 and any nonprofit described in paragraph (2) of subsection (c)’’ of ‘‘noncommercial educational broadcast station as institution or organization engaged in the activities section 118. 17 U.S.C. 118(f).

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Number of full-time students 2023 2024 2025 2026 2027

Level 5 ... 20,000+ ...... 1,009 1,035 1,062 1,090 1,118

* * * * * SUPPLEMENTARY INFORMATION: the license. Section 118(b)(2) provides that such license agreements ‘‘shall be Dated June 24, 2021. Background Jesse M. Feder, given effect in lieu of any determination Section 118 of the Copyright Act, title by the . . . Copyright Royalty Judges,’’ Chief Copyright Royalty Judge. 17 of the United States Code, establishes provided that copies of the agreement [FR Doc. 2021–13922 Filed 6–29–21; 8:45 am] a statutory license for the use of certain are submitted to the Judges ‘‘within 30 BILLING CODE 1410–72–P copyrighted works in connection with days of execution.’’ 17 U.S.C. 118(b)(2). noncommercial television and radio Second, copyright owners and public broadcasting. Chapter 8 of the Copyright broadcasting entities may negotiate rates LIBRARY OF CONGRESS Act requires the Copyright Royalty and terms for categories of copyrighted Judges (‘‘Judges’’) to conduct Copyright Royalty Board works and uses that would be binding proceedings every five years to on all owners and entities using the determine the rates and terms for the 37 CFR Part 381 same license and submit them to the section 118 license. 17 U.S.C. 801(b)(1), Judges for approval. Section [Docket No. 21–CRB–0002–PBR (2023– 804(b)(6). Accordingly, the Judges 801(b)(7)(A) of the Copyright Act 2027)] commenced a proceeding in January authorizes the Judges to adopt rates and 2021, by publishing notice of the terms negotiated by ‘‘some or all of the Determination of Rates and Terms for commencement of the proceeding and a Public Broadcasting (PB IV) participants in a proceeding at any time request that interested parties submit during the proceeding’’ provided they AGENCY: Copyright Royalty Board, petitions to participate. 86 FR 325 (Jan. are submitted to the Judges for approval. Library of Congress. 5, 2021). This section provides that the Judges The Judges received petitions to ACTION: Proposed rule. shall provide notice and an opportunity participate in the current proceeding to comment on the agreement to (1) SUMMARY: The Copyright Royalty Judges from The American Society of Authors, those that would be bound by the terms, Composers and Publishers (ASCAP); publish for comment proposed rates, or other determination set by the Broadcast Music, Inc. (BMI); Church regulations that set rates and terms for agreement and (2) participants in the Music Publishers’ Association, Inc. the use of certain copyrighted works by proceeding that would be bound by the (CMPA); Educational Media Foundation public broadcasting entities for the terms, rates, or other determination set (EMF); Global Music Rights, LLC; period beginning January 1, 2023, and by the agreement. See section National Religious Broadcasters ending December 31, 2027. 801(b)(7)(A). The Judges may decline to Noncommercial Music License DATES: Comments and objections, if any, adopt the agreement as a basis for Committee (NRBNMLC); David Powell; are due no later than July 30, 2021. statutory terms and rates for participants Public Broadcasting Entities ADDRESSES: not party to the agreement if any You may send comments, (Corporation for Public Broadcasting identified by docket number 21–CRB– (CPB), National Public Radio (NPR), and participant objects and the Judges 0002–PBR (2023–2027), online through Public Broadcasting Service (PBS)); conclude that the agreement does not eCRB at https://app.crb.gov. SESAC Performing Rights, LLC provide a reasonable basis for setting Instructions: To send your comment (SESAC); and The Harry Fox Agency statutory terms or rates. Id. through eCRB, if you don’t have a user LLC (HFA). On June 21, 2021, the Judges received account, you will first need to register The Judges gave notice to all a joint proposal from participants HFA for an account and wait for your participants of the three-month and NRBNMLC regarding fees for registration to be approved. Approval of negotiation period required by 17 U.S.C. recording rights under 37 CFR user accounts is only available during 803(b)(3) and directed that, if the 381.7(b)(4) for the period 2023–2027. business hours. Once you have an participants were unable to negotiate a Joint Proposal . . . Regarding Fees for approved account, you can only sign in settlement, they should submit Written Recording Rights Under 37 CFR and file your comment after setting up Direct Statements no later than 381.7(B)(4) (June 21, 2021) (Proposal). multi-factor authentication, which can September 10, 2021. Notice of The fees in § 381.7(b)(4) apply to the be done at any time of day. All Participants, Commencement of ‘‘recording of nondramatic comments must include the Copyright Voluntary Negotiation Period, and Case performances and displays of musical Royalty Board name and the docket Scheduling Order (Feb. 9, 2021). works for the types of uses described in number for this proposed rule. All There are two ways copyright owners 17 U.S.C. 118(c)(2)–(3) by properly filed comments will appear and public broadcasting entities 1 may noncommercial radio stations other than without change in eCRB at https:// negotiate rates and terms under the uses in a radio program produced by app.crb.gov, including any personal section 118 statutory license. First, [NPR] and other than uses subject to information provided. copyright owners may negotiate rates voluntary license agreements.’’ Proposal Docket: For access to the docket to and terms with specific public at 2. HFA and NRBNMLC filed a read background documents or broadcasting entities for the use of all of proposal instead of a notice of comments received, go to eCRB at the copyright owners’ works covered by settlement because NRBNMLC does not https://app.crb.gov and perform a case represent all radio stations subject to the search for docket 21–CRB–0002–PBR 1 A ‘‘public broadcasting entity’’ is defined as a fees. Id. Participant EMF joins in the (2023–2027). ‘‘noncommercial educational broadcast station as proposal. Id. at 3 n.2. FOR FURTHER INFORMATION CONTACT: defined in section 397 of title 47 and any nonprofit institution or organization engaged in the activities The Proposal states that the fees in Anita Blaine, CRB Program Specialist, at described in paragraph (2) of subsection (c)’’ of § 381.7(b)(4) should be modified. See id. 202–707–7658 or [email protected]. section 118. 17 U.S.C. 118(f). at 2–3. It also proposes carrying forward

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unchanged (except to replace ‘‘January ENVIRONMENTAL PROTECTION I. Written Comments 1, 2018’’ with ‘‘January 1, 2023’’ and AGENCY ‘‘December 31, 2022’’ with ‘‘December Submit your comments, identified by 31, 2027’’) current provisions set forth 40 CFR Parts 52 and 70 Docket ID No. EPA–R07–OAR–2021– in §§ 381.1, 381.2, 381.9, and 381.11. Id. 0416, at https://www.regulations.gov. The Judges solicit comments on [EPA–R07–OAR–2021–0416; FRL–10025– Once submitted, comments cannot be whether they should adopt the proposed 54–Region 7] edited or removed from regulations.gov. regulations as statutory rates and terms The EPA may publish any comment relating to the reproduction, Air Plan Approval; Missouri; Revision received to its public docket. Do not distribution, performance or display of to Emission Data, Emission Fees and submit electronically any information certain works by public broadcasting Process Information Rule you consider to be Confidential entities (as defined in 17 U.S.C. 118(f)) AGENCY: Environmental Protection Business Information (CBI) or other in the course of the activities described Agency (EPA). information whose disclosure is in 17 U.S.C. 118(c). restricted by statute. Multimedia ACTION: Proposed rule. Comments and objections regarding submissions (audio, video, etc.) must be the proposed changes must be SUMMARY: The Environmental Protection accompanied by a written comment. submitted no later than July 30, 2021. Agency (EPA) is proposing approval of The written comment is considered the List of Subjects in 37 CFR Part 381 a State Implementation Plan (SIP) and official comment and should include Operating Permits Program revision discussion of all points you wish to Copyright, Music, Radio, Television, submitted by the State of Missouri on Rates. make. The EPA will generally not May 25, 2021. These revisions update consider comments or comment For the reasons set forth in the the listed emission reporting years and contents located outside of the primary preamble, the Copyright Royalty Judges update the emissions fee for permitted submission (i.e. on the web, cloud, or propose to amend 37 CFR part 381 as sources as set by Missouri Statute from follows: other file sharing system). For $48 per ton of air pollution emitted additional submission methods, the full PART 381—USE OF CERTAIN annually to $53 in calendar year 2021 EPA public comment policy, COPYRIGHTED WORKS IN and $55 per ton of air pollution emitted information about CBI or multimedia CONNECTION WITH annually for emissions in calendar year submissions, and general guidance on NONCOMMERCIAL EDUCATIONAL 2022 and beyond; effective March 30, making effective comments, please visit BROADCASTING 2021. https://www.epa.gov/dockets/ DATES: Comments must be received on commenting-epa-dockets. ■ 1. The authority citation for part 381 or before July 30, 2021. continues to read as follows: II. Background ADDRESSES: You may send comments, Authority: 17 U.S.C. 118, 801(b)(1), 803. identified by Docket ID No. EPA–R07– The EPA granted full approval of the ■ 2. Revise § 381.1 to read as follows: OAR–2021–0416 to https:// Missouri Operating Permit Program www.regulations.gov. Follow the online effective June 13, 1997 (see 62 FR § 381.1 General. instructions for submitting comments. 26405). Under title 40 Code of Federal This part establishes terms and rates Instructions: All submissions received Regulations (CFR) 70.9(a) and (b), an of royalty payments for certain activities must include the Docket ID No. for this approved state’s title V operating using published nondramatic musical rulemaking. Comments received will be permits program must require that the works and published pictorial, graphic posted without change to https:// owners or operators of part 70 sources and sculptural works during a period www.regulations.gov/, including any pay annual fees, or the equivalent over beginning on January 1, 2023, and personal information provided. For some other period, that are sufficient to ending on December 31, 2027. Upon detailed instructions on sending cover the permit program costs and compliance with 17 U.S.C. 118, and the comments and additional information ensure that any fee required under 40 terms and rates of this part, a public on the rulemaking process, see the CFR 70.9 is used solely for permit broadcasting entity may engage in the ‘‘Written Comments’’ heading of the activities with respect to such works set program costs. The fee schedule must SUPPLEMENTARY INFORMATION section of result in the collection and retention of forth in 17 U.S.C. 118(c). this document. ■ 3. Revise § 381.7(b)(4) to read as revenues sufficient to cover the permit FOR FURTHER INFORMATION CONTACT: follows: program implementation and oversight Jason Heitman, Environmental costs. § 381.7 Recording rights, rates and terms. Protection Agency, Region 7 Office, Air Quality Planning Branch, 11201 Renner Missouri has determined that fee * * * * * adjustments are needed to offset the (b) * * * Boulevard, Lenexa, Kansas 66219; (4) For such uses other than in an telephone number: (913) 551–7664; effect of declining revenues and to NPR-produced radio program: email address: [email protected]. maintain the solvency of the Missouri Air Pollution Control Program. SUPPLEMENTARY INFORMATION: 2023–2027 Throughout this document ‘‘we,’’ ‘‘us,’’ III. What is being addressed in this (i) Feature ...... $ .83 and ‘‘our’’ refer to EPA. document? (ii) Feature (concert) (per half Table of Contents hour) ...... 1.72 The EPA is proposing to approve (iii) Background ...... 42 I. Written Comments revisions to the Missouri State * * * * * II. Background Implementation Plan (SIP) and title V III. What is being addressed in this Operating Permits Program, 10–6.110 Dated June 24, 2021. document? ‘‘Reporting Emission Data, Emission Jesse M. Feder, IV. Have the requirements for approval of a SIP and part 70 revision been met? Fees, and Process Information,’’ Chief Copyright Royalty Judge. V. What action is the EPA proposing to take? submitted to the EPA on May 25, 2021. [FR Doc. 2021–13923 Filed 6–29–21; 8:45 am] VI. Incorporation by reference Revisions to the program include BILLING CODE 1410–72–P VII. Statutory and Executive Order Reviews updating emission reporting years and

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increasing the annual emission fee. The an EPA final rule that includes • Is not subject to requirements of the annual emission fee will increase from incorporation by reference. In National Technology Transfer and $48 per ton of air pollution emitted accordance with requirements of 1 CFR Advancement Act (NTTA) because this annually to $53 in calendar year 2021 51.5, the EPA is proposing to rulemaking does not involve technical and increase again to $55 per ton of air incorporate by reference the Missouri standards; and pollution emitted annually for Regulation described in the proposed • Does not provide EPA with the emissions in calendar year 2022 and amendments to 40 CFR part 52 set forth discretionary authority to address, as beyond; effective March 30, 2021. below. The EPA has made, and will appropriate, disproportionate human IV. Have the requirements for approval continue to make, these materials health or environmental effects, using of a SIP and part 70 revision been met? generally available through practicable and legally permissible www.regulations.gov and at the EPA methods, under Executive Order 12898 The State submission has met the Region 7 Office (please contact the (59 FR 7629, February 16, 1994). public notice requirements for SIP person identified in the FOR FURTHER The SIP is not approved to apply on submissions in accordance with 40 CFR INFORMATION CONTACT section of this any Indian reservation land or in any 51.102. The submission also satisfied preamble for more information). the completeness criteria of 40 CFR part other area where EPA or an Indian tribe 51, appendix V. The state provided a VII. Statutory and Executive Order has demonstrated that a tribe has public comment period for this Reviews jurisdiction. In those areas of Indian Operating Permits Program and SIP Under the Clean Air Act (CAA), the country, the rule does not have tribal revision from August 17, 2020, to Administrator is required to approve a implications and will not impose October 1, 2020, and received one SIP submission that complies with the substantial direct costs on tribal comment in support of the revison. The provisions of the Act and applicable governments or preempt tribal law as revision meets the substantive SIP Federal regulations. 42 U.S.C. 7410(k); specified by Executive Order 13175 (65 requirements of the CAA, including 40 CFR 52.02(a). Thus, in reviewing SIP FR 67249, November 9, 2000). section 110 and implementing submissions, EPA’s role is to approve List of Subjects regulations and is consistent with state choices, provided that they meet applicable EPA requirements in title V the criteria of the CAA. Accordingly, 40 CFR Part 52 of the CAA and 40 CFR part 70. this action merely approves state law as Environmental protection, Air V. What action is the EPA proposing to meeting Federal requirements and does pollution control, Incorporation by take? not impose additional requirements reference, Reporting and recordkeeping beyond those imposed by state law. For The EPA is proposing to approve the requirements. that reason, this action: state’s revision to 10 C.S.R. 10–6.110 • Is not a significant regulatory action 40 CFR Part 70 ‘‘Reporting Emission Data, Emission Fees, and Process Information’’, subject to review by the Office of Environmental protection, submitted by the state of Missouri on Management and Budget under Administrative practice and procedure, May 25, 2021. This revision updates the Executive Orders 12866 (58 FR 51735, Air pollution control, Intergovernmental emissions fee for permitted sources in October 4, 1993) and 13563 (76 FR 3821, relations, Operating permits, Reporting January 21, 2011); section (3)(A) and the emission • and recordkeeping requirements. reporting years in Table 4 of section Does not impose an information collection burden under the provisions Dated: June 24,2021. (4)(B), as set by Missouri Statute. Edward H. Chu, Specifically, section (3)(A) revises the of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.); Acting Regional Administrator, Region 7. emission fees section, which is • approved under the Operating Permits Is certified as not having a For the reasons stated in the Program only, and updates the significant economic impact on a preamble, EPA proposes to amend 40 emissions fee for permitted sources as substantial number of small entities CFR parts 52 and 70 as set forth below: set by Missouri Statute from $48 per ton under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.); PART 52—APPROVAL AND of air pollution emitted annually to $53 • in calendar year 2021 and $55 per ton Does not contain any unfunded PROMULGATION OF of air pollution emitted annually for mandate or significantly or uniquely IMPLEMENTATION PLANS emissions in calendar year 2022 and affect small governments, as described beyond; effective March 30, 2021. in the Unfunded Mandates Reform Act ■ 1. The authority citation for part 52 Additional information on the EPA’s of 1995 (Pub. L. 104–4); continues to read as follows: • analysis can be found in the Technical Does not have federalism Authority: 42 U.S.C. 7401 et seq. Support Document (TSD) included in implications as specified in Executive this docket. Order 13132 (64 FR 43255, August 10, Subpart AA–Missouri We are processing this as a proposed 1999); action because we are soliciting • Is not an economically significant ■ 2. In § 52.1320, the table in paragraph comments. Final rulemaking will occur regulatory action based on health or (c) is amended by revising the entry after consideration of any comments. safety risks subject to Executive Order ‘‘10–6.110’’ to read as follows: 13045 (62 FR 19885, April 23, 1997); VI. Incorporation by Reference • Is not a significant regulatory action § 52.1320 Identification of plan. In this document, the EPA is subject to Executive Order 13211 (66 FR * * * * * proposing to include regulatory text in 28355, May 22, 2001); (c) * * *

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EPA-APPROVED MISSOURI REGULATIONS

Missouri State effective citation Title date EPA approval date Explanation

Missouri Department of Natural Resources

*******

Chapter 6—Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control Regulations for the State of Missouri

*******

10–6.110 ...... Reporting Emission Data, 3/30/2021 [Date of publication of the final rule in the Section (3)(A), Emission Emission Fees, and Proc- Federal Register], [Federal Register cita- Fees, has not been ap- ess Information. tion of the final rule]. proved as part of the SIP.

*******

* * * * * SUMMARY: Through this Third Notice of ADDRESSES: You may submit comments, Proposed Rulemaking (NPRM), the identified by docket numbers PS Docket PART 70—STATE OPERATING PERMIT Federal Communications Commission No. 15–80, PS Docket No. 13–75, and ET PROGRAMS (FCC or Commission) proposes several Docket No. 04–35, by any of the ■ 3. The authority citation for part 70 rules to promote public safety by following methods: continues to read as follows: ensuring that 911 call centers and the D Federal Communications public receive timely and useful Commission’s website: http:// Authority: 42 U.S.C. 7401, et seq. notifications of network disruptions that apps.fcc.gov/ecfs/. Follow the ■ 4. In appendix A to part 70 the entry affect 911 service. The NPRM seeks instructions for submitting comments. for ‘‘Missouri’’ is amended by adding comment on whether to harmonize the D By commercial overnight courier or paragraph (jj) to read as follows: Commission’s public safety answering first-class or overnight U.S. Postal point (PSAP) outage notification Appendix A to Part 70—Approval Service mail. See the SUPPLEMENTARY requirements so that both originating Status of State and Local Operating INFORMATION section for more and covered 911 service providers Permits Programs instructions. notify PSAPs about outages that D People with Disabilities: Contact the * * * * * potentially affect 911 within the same FCC to request reasonable Missouri timeframe, by the same means, and with accommodations (accessible format * * * * * the same frequency. The NPRM documents, sign language interpreters, (jj) The Missouri Department of Natural proposes standardizing the information CART, etc.) by email: [email protected] Resources submitted revisions to Missouri that is conveyed via outage notifications or phone: 202–418–0530 or TTY: 202– rule 10 CSR 10–6.110, ‘‘Reporting Emission to PSAPs by service providers. This 418–0432. Data, Emission Fees, and Process NPRM also proposes to require that For detailed instructions for Information’’ on May 25, 2021. The state service providers develop and submitting comments and additional effective date is March 30, 2021. This implement procedures to gather, information on the rulemaking process, revision is effective [date 60 days after date maintain, and update PSAP contact see the SUPPLEMENTARY INFORMATION of publication of the final rule in the Federal information annually. In addition, the Register]. section of this document. NPRM proposes to require service FOR FURTHER INFORMATION CONTACT: * * * * * providers to notify their customers [FR Doc. 2021–13992 Filed 6–29–21; 8:45 am] Beau Finley, Public Safety and when there is a reportable outage that Homeland Security Bureau, at 202–418– BILLING CODE 6560–50–P affects 911 availability within 60 7835 or at [email protected]. For minutes of determining there is an additional information concerning the outage. This NPRM also proposes to Paperwork Reduction Act information codify specific exemptions to certain FEDERAL COMMUNICATIONS collection requirements contained in reporting requirements adopted by the COMMISSION this document, send an email to PRA@ Commission in 2016. 47 CFR Parts 4 and 9 fcc.gov or contact Nicole Ongele at 202– DATES: Written comments to the 418–2991 or at [email protected]. [PS Docket No. 15–80, PS Docket No. 13– Commission must be submitted on or SUPPLEMENTARY INFORMATION: Pursuant 75, ET Docket No. 04–35; FCC 21–45; FR before July 30, 2021 and reply to §§ 1.415 and 1.419 of the ID 28761] comments to the Commission must be Commission’s rules, 47 CFR 1.415, submitted on or before August 30, 2021. 1.419, interested parties may file Disruptions to Communications; Written comments on the Paperwork comments and reply comments on or Improving 911 Reliability Reduction Act proposed information before the dates indicated on the first AGENCY: Federal Communications collection requirements must be page of this document. Comments may Commission. submitted by the public-and other be filed using the Commission’s interested parties on or before August Electronic Comment Filing System ACTION: Proposed rule. 30, 2021. (ECFS). See Electronic Filing of

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Documents in Rulemaking Proceedings, can be found) in lieu of summarizing outage reporting by service providers to 63 FR 24121 (1998). them in the memorandum. Documents both the Commission and potentially • Electronic Filers: Comments may be shown or given to Commission staff affected 911 special facilities, which filed electronically using the internet by during ex parte meetings are deemed to also include PSAPs when there is a loss accessing the ECFS: http://apps.fcc.gov/ be written ex parte presentations and of communications to PSAP(s), subject ecfs/. must be filed consistent with rule to specific conditions; and 911 • Paper Filers: Parties who choose to § 1.1206(b). In proceedings governed by reliability and certification file by paper must file an original and rule § 1.49(f) or for which the requirements. 47 CFR 4.5(a), (c), and (e) one copy of each filing. Commission has made available a through (h), 9.4, 9.10(b), 9.11(a)(2), • Filings can be sent by commercial method of electronic filing, written ex 9.18(a), 9.19. overnight courier, or by first-class or parte presentations and memoranda 3. Outage Reporting Rules. The overnight U.S. Postal Service mail. All summarizing oral ex parte Commission requires originating service filings must be addressed to the presentations, and all attachments providers—i.e., cable, satellite, wireless, Commission’s Secretary, Office of the thereto, must be filed through the wireline, and interconnected VoIP Secretary, Federal Communications electronic comment filing system providers that provide the capability for Commission. consumers to originate 911 calls—as • available for that proceeding, and must Commercial overnight mail (other be filed in their native format (e.g., .doc, well as covered 911 service providers— than U.S. Postal Service Express Mail .xml, .ppt, searchable .pdf). Participants i.e., providers that aggregate 911 traffic and Priority Mail) must be sent to 9050 in this proceeding should familiarize from originating service providers and Junction Drive, Annapolis Junction, MD themselves with the Commission’s ex deliver it to PSAPs—to notify both the 20701.U.S. Postal Service first-class, parte rules. Commission and PSAPs when they Express, and Priority mail must be experience an outage that potentially addressed to 45 L Street NE, Synopsis affects 911. 47 CFR 4.3(a), (d), and (f) Washington, DC 20554. through (h), 4.9(a), (c), and (e) through • I. Introduction Effective March 19, 2020, and until (h), 9.19(a)(4). further notice, the Commission no 1. In this NPRM, the Commission 4. The Commission has adopted four longer accepts any hand or messenger proposes to enhance its regulatory threshold criteria for reporting outages delivered filings. This is a temporary framework governing notifications of that potentially affect 911, any of which measure taken to help protect the health disruptions to 911 service by would trigger a notification and safety of individuals, and to harmonizing the Commission’s requirement: mitigate the transmission of COVID–19. notification requirements, improving (1) There is a loss of communications See FCC Announces Closure of FCC the usefulness of outage notification to PSAP(s) potentially affecting at least Headquarters Open Window and content, requiring service providers to 900,000 user-minutes and: The failure is Change in Hand-Delivery Policy, Public keep the public informed during periods neither at the PSAP(s) nor on the Notice, DA 20–304 (March 19, 2020). of 911 unavailability, and ensuring the premises of the PSAP(s); no reroute for https://www.fcc.gov/document/fcc- accuracy of PSAP contact information. all end users was available; and the closes-headquarters-open-window-and- The Commission also seeks comment on outage lasts 30 minutes or more; or changes-hand-delivery-policy whether modifications to the associated (2) There is a loss of 911 call The proceeding this NPRM initiates reporting requirements would enhance processing capabilities in one or more shall be treated as a ‘‘permit-but- public safety while reducing burdens on E–911 tandems/selective routers for at disclose’’ proceeding in accordance regulated entities. Section 1 of the least 30 minutes duration; or with the Commission’s ex parte rules. Communications Act, as amended (Act), (3) One or more end-office or [Mobile 47 CFR 1.1200 through 1.1216. Persons charges the Commission with Switching Center (MSC)] . . . switches making ex parte presentations must file ‘‘promoting safety of life and property or host/remote clusters is isolated from a copy of any written presentation or a through the use of wire and radio 911 service for at least 30 minutes and memorandum summarizing any oral communications.’’ 47 U.S.C. 151. This potentially affects at least 900,000 user- presentation within two business days statutory objective and statutory minutes; or after the presentation (unless a different authorities, also cited below, support (4) There is a loss of [Automatic deadline applicable to the Sunshine the Commission’s network outage Number Identification (ANI)/Automatic period applies). Persons making oral ex reporting and 911 reliability rules, Location Information (ALI)] . . . and/or parte presentations are reminded that including the proposals here. 47 U.S.C. a failure of location determination memoranda summarizing the 151, 154(i), 154(j) 154(o), 201(b), 214(d), equipment, including Phase II presentation must (1) list all persons 218, 251(e)(3), 301, 303(b), 303(g), equipment, for at least 30 minutes and attending or otherwise participating in 303(r), 307, 309(a), 316, 332, 403, 615a– potentially affecting at least 900,000 the meeting at which the ex parte 1, and 615c. In adopting this NPRM, the user-minutes (provided that the ANI/ presentation was made, and (2) Commission continues its commitment ALI or location determination summarize all data presented and to ensuring that the Commission’s rules, equipment was then currently deployed arguments made during the including those governing covered 911 and in use, and the failure is neither at presentation. If the presentation service providers, are sufficient, the PSAP(s) or on the premises of the consisted in whole or in part of the necessary, and technologically PSAP(s)). 47 CFR 4.5(e), 9.3. presentation of data or arguments appropriate. 79 FR 3123 (911 Reliability 5. The Commission currently has two already reflected in the presenter’s Report and Order). different sets of requirements for the written comments, memoranda or other timing, content, means, and frequency filings in the proceeding, the presenter II. Background of PSAP notification, depending on the may provide citations to such data or 2. The Commission oversees the nature of the provider. The first set of arguments in his or her prior comments, integrity of 911 communications rules was originally adopted for memoranda, or other filings (specifying infrastructure primarily through three common carriers in 1994, and was the relevant page and/or paragraph complementary mechanisms: 911 call subsequently expanded to govern a numbers where such data or arguments transmission requirements; network broader set of communications

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providers called originating service Commission adopted a series of 911 11. Call takers in the nation’s providers. The second set of rules, certification rules to improve 911 approximately 5,700 PSAPs answer adopted in 2013, governs covered 911 network reliability. 911 Reliability these calls and connect callers to service providers, the entities that, as Report and Order at paras. 48 through emergency services that regularly save the Commission reasoned at the time, 65. These rules require covered 911 lives and safeguard property. 911 are the ‘‘most likely to experience service providers to take reasonable systems, however, are susceptible to reportable outages affecting 911 measures to provide reliable 911 service outages that can occur in the underlying service.’’ 47 CFR 4.9(h); 911 Reliability with respect to 911 circuit diversity, communications network. Ensuring that Report and Order. Covered 911 service central office backup power, and diverse 911 services are restored quickly providers must notify PSAPs of outages network monitoring. 47 CFR 9.19(c). To following network outages is a top that potentially affect them ‘‘as soon as ensure that covered 911 service public safety priority for the possible, but no later than 30 minutes providers have taken these measures, Commission. Commission rules, among after discovering the outage,’’ whereas covered 911 service providers must other things, specify 911-related outage originating service providers are only certify as to their compliance with each notification and 911 reliability required to notify PSAPs ‘‘as soon as of these three requirements or to their certification requirements for providers. possible.’’ 47 CFR 4.9(a)(4), (c)(2)(iv), implementation of reasonable 47 CFR part 4, appendix A. In this (e)(1)(v), (f)(4), (g)(1)(i), (h). Covered 911 alternative measures. 47 CFR 9.19. document, the Commission proposes service providers must convey to PSAPs 7. When the Commission adopted specific rules to ensure that its 911 ‘‘all available information that may be rules for covered 911 service providers notification framework remains robust, useful in mitigating the effects of the in 2013, it committed to reexamining reliable, and responsive. These outage, as well as the name, telephone the rules after five years to consider proposals, discussed below, will number, and email address at which the whether the rules were still enhance public safety by ensuring that service provider can be reached,’’ ‘‘technologically appropriate and both PSAPs and the public are provided with whereas originating service providers adequate and necessary.’’ 911 Reliability timely notification of disruptions to 911. Report and Order at para. 159. The are only required to provide ‘‘all A. Improving PSAP Outage Notification available information that may be useful Commission stated that review of the to the management of the affected rules would consider, among other 1. Harmonizing PSAP Outage facility in mitigating the effects of the things, whether the rules should be Notification Requirements revised to cover new best practices, outage on callers to that facility.’’ 47 9. When the Commission adopted the CFR 4.9(a)(4), (c)(2)(iv), (e)(1)(v), (f)(4), including outage reporting trends, whether to adopt Next Generation 9–1– more specific notification requirements (g)(1)(i), (h). Covered 911 service for covered 911 service providers in providers must notify PSAPs ‘‘by 1 (NG911) capabilities on a nationwide basis, and whether the certification 2013, it stated that it would ‘‘defer for telephone and in writing via electronic future consideration’’ whether means in the absence of another method approach has yielded the necessary level of compliance, noting that a originating service providers should be mutually agreed upon in advance by the subject to those requirements, reasoning 911 special facility and the covered 911 ‘‘persistence of preventable 911 outages could indicate a need for broader or that covered 911 service providers are service provider,’’ whereas originating the entities most likely to experience service providers are only required to more rigorous rules.’’ 911 Reliability Report and Order at para. 159. Thus, in reportable outages affecting 911 service. notify PSAPs ‘‘by telephone or another 2018, the Public Safety and Homeland 911 Reliability Report and Order at para. electronic means.’’ 47 CFR 4.9(a)(4), Security Bureau (Bureau) issued a 147. While the Commission’s outage (c)(2)(iv), (e)(1)(v), (f)(4), (g)(1)(i), (h). public notice seeking comment on the reporting rules already require both Finally, covered 911 service providers rules’ effectiveness, as well as on originating service providers and must follow up with the PSAPs within reducing affected parties’ regulatory covered 911 service providers to notify two hours of making the initial outage burdens. Public Safety and Homeland PSAPs of outages that potentially affect notification, providing ‘‘additional Security Bureau Seeks Comment on 911 911, the Commission’s experiences material information’’ that includes ‘‘the Network Reliability Rules, PS Docket since adoption of the PSAP notification nature of the outage, its best-known No. 13–75, Public Notice, 33 FCC Rcd rules for covered 911 service providers cause, the geographic scope of the 5987, 5988–90 (Public Safety and in 2013 demonstrate that having outage, the estimated time for repairs, Homeland Security Bureau (PSHSB) different reporting obligations for and any other information that may be 2018) (2018 911 Reliability Public originating service providers and useful to the management of the affected Notice). The Bureau received ten covered 911 service providers is neither facility,’’ whereas originating service comments and six reply comments from practicable nor in the public interest. providers are not required to follow up entities representing industry, local For example, in at least two instances with PSAPs at all. 47 CFR 4.9(h). In government, and the public safety following a nationwide 911 outage, the adopting these broader requirements for community, and it also hosted meetings Commission (through its Enforcement covered 911 service providers in 2013, with stakeholders to obtain additional Bureau) found that the affected the Commission did ‘‘not seek to replace information. originating service providers had not the existing [PSAP outage notification] taken adequate steps to notify PSAPs in scheme with a new, more onerous one, III. Discussion a manner that would have allowed the but rather, to clarify the timing and 8. In times of emergency, dialing 9– affected PSAPs to ensure the public’s notification content with which certain 1–1 serves as a crucial life link for those access to critical emergency services. T- service providers subject to section 4.9 in need of immediate help. In 2019 Mobile USA, Inc., File No. EB–SED–15– must already comply.’’ 911 Reliability alone, those in crisis placed over 200 00018025, Order, 30 FCC Rcd 7247, Report and Order at para. 146. million emergency calls to 911. 911 para. 2 (EB 2015) (T-Mobile Order); 6. 911 Reliability and Certification Reliability Report and Order at para. AT&T Mobility, LLC, File No. EB–SED– Rules. In the wake of the devastating 159. More than 70% of these emergency 17–00024532, Order, 33 FCC Rcd 6144, derecho that affected the Midwest and calls originate from wireless phones. 6145, para. 2 (EB 2018) (AT&T Mobility Mid-Atlantic states in 2012, the 911 Reliability Report and Order at para. Order).

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10. In August 2014, T-Mobile they communicate additional material not differ depending on whether the experienced two network outages that, information as that information becomes outage is caused by a disruption in an taken together, resulted in 50,000,000 available, but no later than two hours originating service provider’s network subscribers nationwide being unable to after the initial notification. The versus a covered 911 service provider’s reach 911 call takers for a three-hour Commission seeks comment on its network. As discussed below, PSAPs period. T-Mobile Order. During that proposed means for PSAP notification. that receive actionable 911 outage time, PSAPs were not informed of the Are these means—by telephone and in notifications use the information in outage and consequently could not writing via electronic means—adequate these notifications to facilitate reliable promptly notify the public of alternative for notifications from originating service and timely public access to emergency means to reach emergency services. T- providers? Are they adequate for services. Mobile Order. And, in March 2017, notifications from covered 911 service 13. The Commission seeks comment AT&T Mobility experienced a network providers? Are there alternative on its proposal to harmonize the timing, outage that resulted in 135,000,000 methods of notification that PSAPs means, and frequency of PSAP subscribers nationwide being unable to would prefer? The Commission also notification for originating service reach 911 call takers for a five-hour seeks comment on the proposed providers and covered 911 service period. PSHSB, March 8, 2017 AT&T frequency of updating PSAPs with providers. While the Commission VoLTE 911 Outage Report and material outage information. Is this observes that the AT&T Mobility and T- Recommendations, PS Docket No, 17– proposed frequency sufficient for Mobile outages referenced above 68, at 3, n.1 (2017), https://apps.fcc.gov/ PSAPs? During an extended outage, provide examples of inadequate PSAP edocs_public/attachmatch/DOC- when material information may not notifications by originating service 344941A1.pdf (AT&T VoLTE 911 change for many hours, how should the providers in the context of outages that Outage Report). PSAPs did not receive Commission require originating and only affect 911 calls, the Commission information about the AT&T Mobility covered 911 service providers keep notes that both originating and covered outage until ‘‘approximately three and a PSAPs informed? 911 service providers have notice half hours after the outage began and 12. The Commission anticipates that obligations. Both must include any approximately two and a half hours such changes will enhance PSAP required information in a notification to after AT&T Mobility sent internal mass situational awareness of outages a PSAP only to the extent that it is notifications to company executives and generally and will ensure that PSAPs available, both at the time of the initial senior staff about the event.’’ AT&T receive critical information in a timely notification and at the time of Mobility Order; AT&T VoLTE 911 manner by providing a uniform set of subsequent updates, regardless of Outage Report; Letter from Karima expectations for those providers with whether the outage is a 911 outage or a Holmes, Director, District of Columbia whom they interface. This in turn will general network outage that prevents all Office of Unified Communications, to enhance PSAPs’ abilities to direct scarce calls, insofar as either the outage PSHSB, PS Docket No. 17–68, at 1–2 resources toward mitigating outages disrupts or prevents communications to (Mar. 31, 2017). rather than seeking out information and a PSAP or has the potential to do so. 47 11. The Commission now proposes to will further streamline the ability of the CFR 4.9(a)(4), (c)(2)(iv), (e)(1)(v), (f)(4), require that originating service Commission to administer the rules and (g)(1)(i), (h). The Commission seeks providers and covered 911 service the ability of providers to fulfill their comment on any alternative providers notify PSAPs about all such obligations. This view was underscored requirements that the Commission outages within the same timeframe, by by the Association of Public-Safety should consider to minimize potential the same means, and with the same Communications Officials (APCO), and burdens, if any, on PSAPs and service frequency. The Commission specifically comments from other public safety providers. proposes to require originating service stakeholders during the Bureau’s 2017 14. Under the Commission’s proposed providers to notify potentially affected workshop on best practices and rules, if adopted, originating service 911 special facilities of an outage within recommendations to improve situational providers would be under greater time the same time frame required for awareness during 911 outages. Public pressure to notify PSAPs; would need to covered 911 service providers. As noted safety officials stated that the critical provide contact information so that the above, that time frame is as soon as information contained in these PSAP can reach them for follow up; possible but no later than 30 minutes notifications enables them to be more would need to provide notification by after discovering the outage. The efficient. One participant, Dave two means (e.g., phone call and email) Commission also seeks comment on Mulholland of Arlington County 9–1–1, instead of one; and would need to whether this timeframe is adequate for stated that prompt communication of provide follow-up notification. The PSAPs. The Commission seeks comment this critical information would save ‘‘a Commission seeks comment on the on whether and how to improve this lot of time, energy, and effort’’ by extent to which these changes would proposal to shorten this timeframe for preventing PSAPs from needing to reach increase the burden of PSAP either or both sets of providers and/or out to neighboring PSAPs to determine notification for originating service adjust the reporting criteria to ensure the breadth of an outage. Evelyn Bailey providers. For example, the Commission more rapid and effective notification to of the National Association of State 911 seeks comment on whether originating PSAPs. For example, would automatic Administrators (NASNA) continued, service providers would need to PSAP notification, triggered upon stating that ‘‘[PSAPs] need to know as transmit multiple, regional PSAP detection of an outage, be possible, much specific [outage] information as notifications under the proposed rules provide value to PSAPs, and be in the possible.’’ Public safety representatives when 911 outages affect areas monitored public interest? The Commission also requested that PSAPs receive equivalent by more than one Network Operations proposes that originating service outage notifications regardless of where Center (NOC) and the local NOC is the providers transmit such notification, as in the network an outage occurs. In best point of contact for PSAPs’ outage- presently required for covered 911 other words, according to the public related inquiries, whereas the service providers, by telephone and in safety representatives speaking during Commission’s current rules would only writing via electronic means and that the webcast, PSAP notifications should require them to transmit one.

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15. The Commission notes that in extent to which service providers expect 911 service, while minimizing certain circumstances, PSAPs may find to transition to an automated superfluous or vague information. In that there are benefits to learning of notification process and the timeframe addition to the specific information outages or network disruptions that for any such transition. elements articulated for covered 911 service providers in the current rules, potentially affect 911 but do not meet 2. Ensuring PSAPs Receive Actionable the current reporting thresholds. Are the Information About 911 Outages the Commission proposes that material Commission’s thresholds for PSAP information should also include the notification too high? Should the 17. Since the adoption of the PSAP following for both originating service Commission modify these notification notification rules, PSAPs have reported providers and covered 911 service requirements so that originating and that notifications they receive often are providers, where available: covered 911 service providers are confusing or uninformative, and have • The name of the service provider required to notify PSAPs of network emphasized the need for clear and offering the notification; disruptions that potentially affect 911 actionable information regarding 911 • The name of the service provider(s) service but do not meet the thresholds outages so 911 authorities can inform experiencing the outage; • necessary to report to the Commission? the public about alternative means to The date and time when the What would be the appropriate outage contact emergency services. incident began (including a notation of reporting threshold requiring PSAP Commenters representing public safety the relevant time zone); • notification? The Commission seeks and industry agree that uniform The type of communications information elements in PSAP service(s) affected; comment on the utility to PSAPs and • benefits to public safety of any notifications can help minimize The geographic area affected by the consequent increased situational confusion at PSAPs. The Commission outage; • A statement of the notifying service awareness of network outages also has observed that when PSAPs provider’s expectations for how the potentially affecting 911. The receive actionable 911 outage outage will affect the PSAP (e.g., Commission also seeks comment on the notifications, they are empowered to use dropped calls or missing metadata); costs of lowering these thresholds in reverse 911, post on social media • The expected date and time of light of the expected increase in platforms, work with local media to run restoration, including a notation of the notifications to PSAPs. The Commission on-screen text crawls, and use other relevant time zone; seeks comment on how many additional tools at their disposal to notify the public of alternative means to reach • The best-known cause of the outage; outages beyond the estimated 37,000 their emergency services. During AT&T and outages that potentially affect 911 each Mobility’s nationwide 911 outage, for • A statement of whether the message year would be reportable to PSAPs. example, when AT&T notified PSAPs in is the notifying service provider’s initial 16. The Commission seeks comment Orange County, Florida several hours notification to the PSAP, an update to on the cost and benefits of originating after it discovered the outage, Orange an initial notification, or a message service providers notifying PSAPs about County PSAPs were able to take intended to be the notifying service 911 outages within the same timeframe, measures to notify the public of their provider’s final assessment of the by the same means, and with the same alternative 10-digit phone numbers as a outage. frequency that covered 911 service means to reach their emergency 19. These proposed outage providers currently do. The cost services. AT&T VoLTE 911 Outage notifications elements follow the estimates below are incremental to the Report. Once Orange County PSAPs template developed by the Alliance for costs that originating service providers provided their alternative 10-digit Telecommunications Industry already incur to notify PSAPs of outages phone numbers to the public, they Solutions’ (ATIS) Network Reliability that potentially affect them pursuant to received 172 calls to those numbers Steering Committee (NRSC) Situational the Commission’s rules. The during the one and a half hours until Awareness for 9–1–1 Outages Task Commission seeks comment on those AT&T Mobility resolved the outage. Force Subcommittee (NRSC Task Force), estimates. Additionally, the actual cost AT&T VoLTE 911 Outage Report. The working together with public safety that originating service providers would Bureau has credited these measures as stakeholders, minus the NRSC Task incur to comply with this requirement being critical to maintaining the public’s Force’s inclusion of an incident may be substantially lower than continued access to emergency services identifier. In the 2018 911 Reliability estimated. 47 CFR 4.9(a)(4), (c)(2)(iv), during several widespread 911 outages. Public Notice, the Bureau sought (e)(1)(v), (f)(4), (g)(1)(i). For example, AT&T VoLTE 911 Outage Report; T- comment on whether the NRSC Task Verizon suggests that some service Mobile Order; PSHSB, December 27, Force’s template should serve as a providers may have automated their 2018 CenturyLink Network Outage model for standardization, and PSAP outage notification processes. For Report (2019), https://www.fcc.gov/ commenters support the NRSC Task originating service providers that have document/fcc-report-centurylink- Force’s work. For example, the National automated PSAP notification, the network-outage/; Verizon, File Nos. EB– Emergency Number Association (NENA) Commission anticipates that the SED–14–00017189, EB–SED–14– suggests that the elements of the NRSC proposed changes to the notification 00017676, EB–SED–14–00017373, Task Force’s template ‘‘will aid PSAPs process would not result in recurring Order, 30 FCC Rcd 2185 (EB 2015). and 9–1–1 authorities in quickly costs. The Commission seeks comment 18. The Commission thus proposes to understanding the nature of a service on this premise, as well as on the extent require originating service providers degradation or network downtime.’’ to which service providers have set up and covered 911 service providers to 20. The Commission seeks comment automated triggers for PSAP include ‘‘all available material on whether these baseline elements notification. The Commission expects information’’ in their PSAP outage would provide useful and actionable that the costs of PSAP outage notifications. The Commission believes information to PSAPs. Will ensuring notifications will fall as service this proposal will help ensure that that PSAPs receive the same providers transition to an automated PSAPs receive relevant, actionable information regardless of where a 911 PSAP outage notification process. The information to better understand 911 outage originates promote situational Commission seeks comment on the outages and to promote continuity of awareness for PSAPs in a manner that

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aids in emergency response? Are there seeks comment on whether this safeguards as adopted in the NORS additional informational elements that additional information could have Information Sharing Report and Order. should be added, or should any negative consequences for emergency The Commission seeks to balance elements listed be removed or revised? response, such as overburdening PSAPs PSAPs’ need for actionable information The Commission notes that the NRSC with too much information, thereby, with providers’ need for confidentiality. Task Force’s template recommends the potentially delaying response times. If The Commission seeks comment on inclusion of a unique identifier so, how could the Commission revise how the Commission might address this associated with the outage. Would this the proposal to minimize the possibility balance. For example, is there a subset help PSAPs organize and access of notification fatigue? of information that would prove as information related to a particular 22. The Commission does not propose useful for PSAPs that could be disclosed outage? APCO suggests covered 911 to require information to be provided in without overly burdening the service providers should also offer a particular format (e.g., by mandating presumption of confidentiality afforded PSAPs graphical interface data use of the NRSC Task Force’s template). reported outage information? Could describing the geographic area Instead, the Commission proposes an PSAPs obtain access to this same outage potentially affected by outages, such as approach that establishes a baseline information from state or other agencies ‘‘coordinate boundaries for the outage expectation of shared information while more rapidly and efficiently than area, GIS files, or text information from otherwise preserving flexibility for directly from service providers? the covered [911] service providers’ originating service providers and 24. The Commission seeks comment internal reporting systems,’’ because covered 911 service providers. PSHSB on the cost and benefits of originating such information could help first Shares Recommended Practices from service providers and covered 911 responders understand which areas September 11, 2017 911 Workshop, DA service providers to report the same could be affected by an outage. To what 18–6, Public Notice, 33 FCC Rcd 11 specific, actionable content in their extent do originating and covered 911 (PSHSB 2018). The Commission seeks PSAP outage notifications. The service providers have this information comment on this approach, or on Commission anticipates the actual cost available within the timeframe that they whether the Commission should may be substantially lower than the would be required to notify PSAPs? The prescribe such a format, and if so the estimate below because the estimated Commission seeks comment on what terms thereof. Considering the diverse, number of service providers that would steps service providers would need to localized nature of 911 networks in the be required to comply is conservatively take to include graphical information in United States, and the extent to which broad. Further, the Commission expects providing actionable information to notifications already may be informed that the additional information that the PSAPs. The Commission asks by originating service providers’ and Commission proposes to require commenters to describe in detail how covered 911 service providers’ originating service providers and PSAPs would use such data to benefit agreements with state and local 911 covered 911 service providers to report the public, including how such data authorities, the Commission specifically to PSAPs already is available to them at could be used to reduce first responder seeks comment on whether this the time of notification, and that the response times. Would requiring them approach would allow originating example of the NRSC Task Force’s to provide this information to PSAPs service providers and covered 911 template would help to streamline impose a significant burden or divert service providers to better meet compliance timelines and reduce costs. individual PSAPs’ distinct needs. The The Commission seeks comment on resources, thereby delaying service Commission would anticipate that whether standardization and restoration? To the extent service service providers’ notification processes streamlining could reduce the providers are unable to provide data for may go beyond those proposed in this compliance costs for originating service visualizing outages and disruptions, NPRM in some circumstances, such as providers that also act as covered 911 what are the costs of developing this by mutual agreement of the parties. service providers in other contexts, or capability, especially for smaller 23. In March, the Commission for originating service providers that are providers? adopted a Report and Order that already offering notifications to PSAPs, 21. The Commission notes that, under established an outage information but doing so with limited guidance on both the existing and proposed rules, sharing framework to provide state and what information to provide. The service providers must include any Federal agencies with access to outage Commission also notes that the NRSC outage information in their PSAP information to improve their situational has already created and shared a tutorial notifications only to the extent that it is awareness, enhance their ability to for PSAPs to facilitate the sharing of available, both at the time that they respond more quickly to outages PSAP contact information with transmit the initial notification and at impacting their communities, and help originating service providers and the time that they transmit any save lives, while safeguarding the covered 911 service providers. The subsequent notifications. The confidentiality of this data. NRSC stated that it ‘‘expects that both Commission seeks comment on how Amendments to Part 4 of the service providers and PSAPs can benefit this approach has worked in practice. Commission’s Rules Concerning from this tutorial.’’ To the extent that The Commission further seeks comment Disruptions to Communications, PS commenters advocate a different on whether requiring service providers Docket No. 15–80, Second Report and approach, the Commission asks for costs to include additional, specific Order, 86 FR 22796 (April 29, 2021), and benefits of such alternatives. information elements in their PSAP FCC 21–34 (rel. Mar. 18, 2021) (Network notifications would allow PSAP Outage Reporting System (NORS) 3. Updating and Maintaining Accurate personnel to comprehend outage Information Sharing Report and Order). Contact Information for Officials information more quickly and whether The Commission acknowledges that Designated To Receive Outage such information would improve disclosing specific outage information to Notifications at Each PSAP PSAPs’ ability to respond when the PSAPs may make that information 25. The Commission’s current outage public cannot reach 911 or when 911 available to other parties and therefore reporting rules require originating services otherwise do not work as seek comment on whether the service providers and covered 911 intended. Conversely, the Commission Commission should supply similar service providers to transmit PSAP

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outage notifications to any official who information, the Commission does not host and operate the database? Are has been designated by the management anticipate that compliance with this originating service providers and of the affected PSAP as the provider’s proposed requirement would present an covered 911 service providers already contact person for communications incremental cost. participating in the development of a outages at that facility. 47 CFR 4.9(a)(4), 28. The Commission also notes that in centralized PSAP contact database? The (c)(2)(iv), (e)(1)(v), (f)(4), (g)(1)(i), (h). To November 2019, the NRSC Task Force Commission notes the efforts of wireless ensure that PSAPs receive the approved standard operating procedures carriers previously to establish the information they need about 911 for updating PSAP contact information National Emergency Address Database outages, the Commission proposes to in a centralized PSAP contact database. (NEAD) to facilitate provision of 911 require originating service providers In that document, the Task Force dispatchable location information for and covered 911 service providers to suggested that a centralized database wireless callers. 80 FR 45897. However, develop and implement procedures for would potentially relieve service wireless carriers notified the gathering, maintaining, and updating providers of the need to maintain their Commission that they had abandoned PSAP contact information. Because time own internal processes and the NEAD after failing to secure is of the essence when a 911 outage responsibilities to work independently necessary agreements with other occurs, originating service providers with each 911 authority. Subsequently, entities. The Commission notes further and covered 911 service providers must in October 2020, the NRSC noted efforts the commitment of several wireless notify the right contacts at PSAPs so by public safety organizations such as provider signatories to the Wireless that the PSAPs can take prompt NENA to develop a PSAP contact Resiliency Cooperative Framework measures to help the public continue to database. The NRSC stated that to (Framework) to ‘‘establish[] a provider/ reach emergency services. encourage broad use of a PSAP contact PSAP contact database’’ to enhance 26. The Commission proposes to information database, it ‘‘would need to coordination during an emergency, the amend § 4.9(h) of its rules to require be made available at little or no cost’’ for existence of which may mitigate the both originating service providers and service providers. The NRSC also costs of creating a PSAP contact covered 911 service providers to expressed concerns regarding data information database, particularly for identify the PSAPs they serve and to integrity and who would be responsible those wireless provider signatories. 78 maintain up-to-date contact information for updating contact information. As FR 69018. What particular lessons for those PSAPs. In particular, the such, the NRSC argued that industry learned may be relevant for a similar Commission proposes to require that adoption of such a database could prove service provider-operated PSAP contact originating and covered 911 service challenging due to ‘‘the potential for information database? The Commission providers develop and implement liability associated with reliance on the seeks comment on the utility of a standard procedures to: (1) Maintain database.’’ database developed, owned, and current contact information for officials 29. The Bureau sought comment on operated by both originating and designated to receive outage the NRSC letter in December 2020. 86 covered 911 service providers. notifications at each PSAP in areas that FR 4074. In response, USTelecom called 32. The Commission also seeks they serve; and (2) on a routine basis, at a PSAP contact information database comment on how such a database would least annually, review and update their ‘‘critically important for industry and be funded and how such a funding PSAP contact information to ensure it PSAP coordination during mechanism would impact smaller remains current. The Commission seeks emergencies.’’ NENA, which operates a service providers. As noted below, comment on this proposal. The voluntary PSAP registry service, stated charging PSAPs and public safety Commission also seeks comment on that there is an ‘‘immediate need for an entities for access to the database could whether to require originating service authoritative service that can provide inhibit PSAP participation in the providers and covered 911 service contact information for PSAPs during database, which would be inconsistent providers to offer contact information emergencies.’’ APCO continued its with the Commission’s stated goal of reciprocally to PSAPs. The Commission support of a PSAP contact information enhancing public safety. What funding does not, however, propose to specify database and urged the Commission to mechanisms would work for such a the procedures that service providers require service providers to establish database? How much would the creation must develop or follow to elicit PSAP and maintain a secure two-way contact and maintenance of such a PSAP contact information to retain flexibility information database. These comments contact information database cost for in this regard. The Commission seeks indicate strong interest in a PSAP initial setup? Given that many service comment on this approach. contact information database to providers already maintain updated 27. The Commission seeks comment facilitate reliable and rapid PSAP contact information, the on the cost and benefits of originating communication between service Commission seeks comment on the ease service providers and covered 911 providers and PSAPs in an emergency. and costs of transitioning from many service providers to maintain up-to-date 30. Therefore, the Commission seeks independent databases to a unified contact information for PSAPs in areas comment on whether a mandatory PSAP database. What would the recurring they serve. The Commission anticipates contact information database accessible costs of maintaining and updating a that the actual costs that originating to and updated by originating and PSAP contact information database be? service providers and covered 911 covered 911 service providers, as well While such a database would appear to service providers would incur to as PSAPs, would warrant the provide certain informational benefits, comply with this requirement may be Commission adopting alternative how significant would these benefits be substantially lower than the estimate requirements other than those proposed in practice? The Commission also asks below because the Commission’s rules above. The Commission seeks comment commenters to describe these (or any already require these service providers on the contours of such a database. other) potential benefits with to notify PSAPs of 911 outages and, as 31. As a threshold question, the specificity. such, they should already have accurate Commission asks how such a database 33. The Commission is especially PSAP outage contact information on would be administered. Should the interested in how a PSAP contact hand. Insofar as service providers Commission, as APCO International information database would best be kept already have up to date PSAP contact suggests, require service providers to current and accurate, as well as where

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the responsibility for updating and services with a PSAP, which may lead comment on whether this threshold is maintaining the database would lie. The to devastating effects. However, those in too narrow, and if so, which additional Commission notes that the utility of a need of emergency services often do not types of disruptions to 911 services PSAP contact information database is know when 911 services are down, only should trigger public notification. For dependent upon the accuracy of the that their emergency calls remain example, should a loss of transmission information it contains. The unanswered. Therefore, to increase of ALI or ANI prompt public Commission consequently seeks public awareness of 911 availability and notification? The Commission also seeks comment on how best to ensure the to help protect the public’s safety when comment on whether this threshold is reliability and integrity of the data 911 services are disrupted, the too broad. contained therein. For example, NENA’s Commission proposes to require service 38. Notification Timing and PSAP registry is free of charge for providers to notify their customers of Frequency. The utility of notifications is PSAPs. The Commission seeks comment 911 outages within 60 minutes of inextricably tied to the service on whether allowing PSAPs to determining there is an outage by provider’s ability to deliver timely and participate free of charge will enhance providing material information on their accurate notifications. The Commission the accuracy of PSAP contact websites and internet-related proposes a similar arrangement for information in the database. applications. public notifications as presented in Furthermore, the Commission seeks 36. Notification Breadth. The § 4.9(h) of the Commission’s rules for comment on whether users and creators Commission proposes that cable, PSAPs: The Commission proposes that of a PSAP contact information database satellite, wireless, wireline, customer notifications commence should be prohibited from using that interconnected VoIP, and covered 911 within 60 minutes of the service information for any other purpose not service providers notify their customers provider discovering that the outage has related to public safety or maintenance when there is an outage that affects the resulted in the unavailability of 911 of the database. The Commission seeks availability of 911 voice or text-to-911 service. 47 CFR 4.9(h). With this comment on whether and how services for their customers. This proposal, the Commission seeks to frequently service providers and PSAPs includes both originating service balance the import of providing the would update their own information in providers and covered services public with the timely ability to access the database. Would the operator of the providers, as they each provide an emergency services with the necessity of database need to regularly validate this essential link in the chain to ensure providing accurate outage information. information on a monthly or annual completion of a 911 call. Because 911 The Commission understands that when basis? The Commission seeks comment unavailability due to an outage on a 9–1–1 is unavailable, both service on the frequency of data validation covered 911 service provider’s network providers and PSAPs are working necessary to ensure the integrity and affects originating service providers as diligently to make sure the public can accuracy of the database. well, the Commission proposes to reach emergency services. The 34. If service providers elect to have require both originating service Commission seeks comment on this a third party operate the PSAP contact providers and covered 911 service proposal. The Commission maintains information database, the Commission providers supply public notification of that such an initial notification of 911 seeks comment on what possible 911 unavailability to their customers. unavailability will increase the liability issues could arise from such a The Commission seeks comment on this likelihood that those in need will third-party database. If the failure of a proposal. understand that 9–1–1 is unavailable service provider to notify a PSAP of an 37. Notification Threshold. The and attempt other methods to receive outage were due to inaccurate Commission proposes that service necessary emergency assistance. In information in the database, who would providers notify their customers of a 911 addition, similar to the proposal the potential liable parties be? Several outage that meets the NORS reporting regarding PSAP notification timing commenters argue that service providers thresholds and also prevents emergency discussed above, the Commission should be shielded from liability for callers on their networks from reaching proposes that service providers update reliance upon information provided by a PSAP by dialing or texting 9–1–1. The public notices with material information the PSAP contact information database. Commission believes that such a regarding the estimated time of 911 The Commission seeks comment on threshold would minimize potential restoration as soon as possible. The whether such a safe harbor would confusion about 911 availability and provision of updates to the public will encourage or inhibit use of the PSAP ensure that the public is only notified of help redirect emergency callers back to contact information database. Would outages that materially affect emergency 9–1–1 and ensure that PSAPs may such an effort help to reduce the costs callers. The Commission seeks comment return to normal call-taking status. The of compliance with this proposal? on this public notification threshold. Commission seeks comment on this Further, rather than establishing a safe For example, if 911 calls are delivered proposal. Is 60 minutes the appropriate harbor rule, would service provider but without audio for one of the parties threshold? Will this timing obligation liability concerns be more appropriately (either caller or 911 call taker), should interfere with service providers’ ability addressed through a requirement that this be considered 911 unavailability? If to provide notice and support to PSAPs? service providers contracting with third callers cannot reach emergency services Are there other burdens that this timing party database operators require those by dialing 9–1–1 but text-to-911 still proposal creates? How can they be operators to implement measures to operates, should this constitute 911 mitigated? Conversely, is this timeframe ensure the accuracy of the third-party unavailability? And should a situation too lengthy to provide meaningful database that are at least as stringent as where text-to-911 is unavailable due to information to the public? the measures that the service providers a network disruption but traditional 39. Notification Content. The employ for their internal databases? voice calls to 911 are possible constitute Commission proposes to require that 911 unavailability? As consumers with service providers create public B. Customer Notification of 911 Outages disabilities may be more likely to text notifications that include the following: 35. When an outage affects 911 rather than call 911, are there additional (1) A statement that there is an outage service, dialing ‘‘9–1–1’’ may not always considerations in determining 911 affecting 911 availability, (2) a connect someone in need of emergency unavailability? The Commission seeks description of the geographic area where

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911 callers may face 911 unavailability, Disaster Information Reporting System providers collectively can best develop (3) an estimated time that 911 service filings by certain public safety and public notification information in became unavailable, and (4) an estimate emergency management agencies of the advance of 911 unavailability. of when 911 services will be restored. 50 states, the District of Columbia, 42. Notification Medium. The The Commission further proposes that Tribal nations, territories, and Federal Commission proposes to require service service providers be required to include Government, provided that they follow providers to post public notification of alternative means to reach emergency safeguards adopted by the Commission. 911 outages prominently on their services, such as alternative contact NORS Information Sharing Report and websites and internet-based information, at the request of the PSAP, Order. Information reported to the applications, such as provider-specific on a per outage basis. The Commission Commission under its part 4 reporting apps for mobile devices. This proposes that a service provider should rules is presumed confidential due to its information should be quickly contact the PSAP(s) affected by 911 sensitive nature to both national accessible, with one click, from the unavailability as soon as possible after security and commercial main page of a service provider’s discovery of an outage, but no later than competitiveness. The Commission website (e.g., T-Mobile.com or 30 minutes after discovery to determine proposes that a subset of this outage Verizon.com), and be accessible for what, if any, alternative means of report information be made publicly individuals with disabilities. The contact the PSAP would like made available, and at a less granular level Commission believes that this will publicly available for the duration of the than what it provided to the allow those seeking critical information incident. The Commission proposes Commission on a confidential basis, in on 911 unavailability during an these elements to ensure that public order to advise PSAPs and consumers emergency to obtain the information notifications are accurate and easily when 911 service is unavailable and to necessary to determine their next steps understood by end-users and are arrange for alternate methods for in procuring emergency services quickly accessible for individuals with consumers to contact PSAPs. The without being inundated with disabilities. The Commission believes Commission believes that this approach information regarding 911 these elements also will reduce would save lives and improve unavailability. Public notification in potential confusion and avoid emergency outcomes involving, for this manner may also avoid creating inadvertently increasing burdens on example, illness and injury, and that the competing messaging with PSAPs that PSAPs. In this respect, a description of benefits of disclosure far outweigh the may choose to use affirmative outreach the geographic scope of 911 increase in the risk of national security methods such as reverse 911 or other unavailability, for example, will ensure or commercial competitiveness harms. public notification systems to notify the that only those affected by 911 The Commission seeks comment on the public of a 911 outage. Because these unavailability use alternate means other relationship between the need for the require the consumer to take action, than 911 to contact emergency services. confidentiality afforded reported part 4 public notifications conveyed over For the same reasons, including the time outage information and the public’s websites and through mobile device at which 911 first became unavailable interest in 911 availability in times of apps do not actively alert the consumer and the estimated time of restoration in critical need. Is there specific like wireless emergency alerts and thus notices will ensure end-users know information that would be conveyed do not contribute to alerting fatigue, and may complement those active measures when they should seek alternatives, under this public notification proposal that may be utilized by local PSAPs. updating consumers regarding that could implicate national security or 43. The Commission acknowledges commercial competitiveness? How restoration time will help redirect that there are many other methods to emergency callers back to 9–1–1, which might the Commission modify the effectuate public notifications of in turn will help PSAPs return to parameters of the proposed customer disruptions to 911 availability: Text normal operations. The Commission notification to address such concerns? messages, emails, phone calls, social seeks comment on this proposal. Is the 41. Given that network disruptions media, and posting on service provider Commission including the right sometimes vary in duration, geographic websites and applications all provide elements for effective public scope, and intensity, the Commission near-real-time opportunities to update notification? Will those seeking seeks comment on whether and to what the public on how best to reach emergency services find this extent service providers can develop emergency services. Each has its pluses information pertinent in their time of public notification content in and minuses. For example, while they need? The Commission also seeks partnership with PSAPs in advance of do not require affirmative action by the comment on best practices for unplanned outages. The Commission consumer, text messages are describing geographic boundaries of also notes that PSAPs are best undeliverable to traditional wireline affected areas. For example, a state’s positioned to determine what contact numbers and service providers may not borders are frequently known but an information to disseminate to the public have email addresses for customers. In outage affecting a smaller area, or an during a 911 outage and that PSAPs may addition, the Commission is concerned area spanning state borders, may be wish to coordinate the message that methods of public notification more difficult to accurately describe. At delivered by service providers with requiring broadcasting 911 what fidelity and how should this their own outreach via social media or unavailability broadly may engender a information be conveyed? The other avenues. The Commission lack of confidence in the ability to reach Commission also seeks comment on the understands that in an outage affecting emergency services by dialing 9–1–1. potential costs and benefits of this multiple PSAPs, any public notification The Commission believes that public proposal. will also need to include a geographic confidence in 911 is critical; indeed, the 40. The Commission also seeks description of where callers may not be Commission has long sought to buttress comment on this proposal in light of the able to reach emergency services by the public’s confidence in 911. 80 FR currently presumptively confidential dialing 9–1–1 to prevent possible caller 3191. Consequently, the Commission treatment of outage reports and the confusion and misdirected emergency believes that this proposal will best recent adoption of a Report and Order calls. As such, the Commission seeks allow those seeking emergency that provides direct access to NORS and comment on how PSAPs and service assistance to determine alternative

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means to reach emergency services. The may have limited internet connectivity? affect public safety by requiring covered Commission seeks comment on this The Commission seeks comment on the 911 service providers to submit assessment. Would public confidence in benefits and costs of implementing certifications when they perform a 911 decrease in the face of too many these alternatives. ‘‘material network change’’ during the alerts regarding 911 unavailability? preceding year? If so, how should the C. Updating the Commission’s 911 Conversely, would greater transparency Network Reliability Framework Commission define a ‘‘material network alleviate concerns that 911 services may change?’’ For those advocating less be unavailable without the public’s 46. Covered 911 service providers frequent certifications, what would the knowledge? Are there benefits to other must certify annually to the cost savings be? The Commission also means of notification, such as text Commission that they perform three asks for costs and benefits of any offered messaging, automated phone calls, or reasonable measures to promote the alternatives. reliability of their networks: Ensure email, that the Commission has 48. The Commission also proposes to circuit diversity, maintain backup overlooked and that merit their require covered 911 service providers power at central offices, and diversify inclusion? Would other means of that have ceased to operate as such— network monitoring. 47 CFR 9.19(b). In notification more effectively reach i.e., they no longer provide covered 911 2018, the Bureau asked commenters to communities where there is limited services, or no longer operate one or address these 911 reliability rules’ internet connectivity, for example, on more central offices that directly serve effectiveness and whether they ‘‘remain some Tribal lands? Further, in areas a PSAP—to notify the Commission via where a significant portion of the technologically appropriate, and both adequate and necessary to ensure the an affidavit in which the service population does not speak English as a provider would explain the basis for its primary language, should the reliability and resiliency of 911 networks.’’ 2018 911 Reliability Public change in status. 47 CFR 9.19(a)(4)(i). Commission require service providers to The Commission proposes that, should include multiple language options for Notice. The record contains widespread support for the 911 reliability rules, a service provider no longer provide the public notification? covered 911 services, the service 44. In addition to accessible public with commenters stating that the provider file an affidavit through the notification on originating and covered Commission’s three reasonable Commission’s online portal during the 911 service provider websites, the measures are appropriate and strengthen timeframe when the portal is open for Commission envisions that those 911 network reliability and resiliency. annual reliability certifications. The seeking additional information would Accordingly, the Commission finds that be able to input their location by its 911 reliability rules continue to be Commission notes that, in 2020, the address into their provider’s website (or technologically appropriate and both Commission opened the 911 reliability similar mobile app) and in turn receive adequate and necessary, and the portal for certification filing from July more specific information on the Commission does not intend in this 30 through October 15. Public Safety geographic scope of the outage. The proceeding to revisit or reopen those and Homeland Security Bureau Commission notes that Verizon already requirements, except as to the timing of Announces Availability of 911 provides ‘‘Network Notifications’’ in the the certification as noted herein. Reliability Certification System for My Verizon App, which provide 47. On this point, commenters differ Annual Reliability Certifications, PS Verizon Wireless customers with regarding the appropriate frequency for Docket Nos. 13–75 and 11–60, Public information on network disruptions and filing the required certification. Some Notice, 35 FCC Rcd 8082 (PSHSB 2020). when restoration is expected. The commenters state that the current, The Commission seeks comment on the Commission seeks comment on this annual certification remains necessary appropriateness of linking the proposal for how customers might to promote awareness of 911 reliability timeframe to file such an affidavit with obtain additional information and how issues for covered 911 service providers’ the period that the portal is open. Is the it might be implemented in a way that senior management and employees. 911 Reliability System the correct place preserves confidence in 9–1–1, provides Others state that less frequent for filing? The Commission proposes value to those in need, and is minimally certification could make the provision these measures to ensure that the burdensome on originating and covered of reliable 911 service more cost- Commission does not expend time and 911 service providers. effective by decreasing the burden on resources to investigate why a covered 45. Finally, the Commission seeks providers without affecting 911 network 911 service provider has failed to file its comment on the costs and benefits of resiliency. The Commission seeks 911 certification in a timely manner, this proposal. Is there an affordable comment on whether, as some when the reason is simply because the alternative method of public notification commenters suggest, less frequent provider is no longer a covered 911 that balances the needs of the public to certification would be an effective service provider and is therefore no know whether dialing 9–1–1 will reach means of reducing compliance burdens, longer required to file the required emergency services with the without sacrificing its benefits. The certifications. The Commission expects Commission’s commitment to Commission emphasizes that it would few companies to end their covered 911 preserving public confidence in 911? To not be making any changes to the service operations from year to year and what extent have service providers fundamental obligations underlying expect such filing costs would be already implemented a notification network reliability certifications— minimal. The Commission believes that framework for other alerts and namely, the requirements to ensure the benefits, however, will be much important announcements that would circuit diversity, maintain backup greater. First, the Commission will be reduce any website development costs power at central offices, and diversify able to more quickly determine whether associated with this proposal? network monitoring. Would increasing a service provider is a covered 911 Alternatively, are there other methods of the time between 911 network reliability service provider before engaging in an public notifications, such as using text certifications—such as requiring only investigation. Second, any service messages or automated phone calls, biennial certifications—affect public provider that has ceased its qualifying which would be likely to reach a larger safety outcomes? If so, could the covered 911 operations and filed with proportion of service providers’ Commission offset any potential risk the Commission that it has done so will customers and those customers who that less frequent certification would not have to encounter an investigation

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into whether the service provider failed providers from reporting outages that customers with notification of certain to file its 911 reliability certifications. potentially affect airports, and the 2016 disruptions to 911 service that result in The Commission seeks comment on Part 4 Order ‘‘extend[ed] that exemption the unavailability of 911 to reach these proposals, their costs and benefits, to all special offices and facilities,’’ and emergency services, take effect no later as well as on potential alternatives for ‘‘extend[ed] the wireless exemption for than June 1, 2022. The proposal service providers to supply this satellite and terrestrial wireless carriers regarding contact information, information to the Commission. to all special offices and facilities.’’ 47 discussed above, will give service CFR 4.9(c)(2)(iii), (e)(1)(iv); 2016 Part 4 providers the opportunity to further D. Administrative Line Definition Order. The Commission proposes to coordinate with PSAPs to determine, in 49. The Commission defines a codify these changes to its rules in the advance of disruptions to 911 covered 911 service provider in part as Code of Federal Regulations, and seeks availability, any alternative contact an entity that ‘‘operates one or more comment on this proposal. information that the PSAPs wish to central offices that directly serve a convey to the public. The Commission F. Compliance Timeframes PSAP. For purposes of this section, a anticipates that service providers may central office directly serves a PSAP if 51. The Commission proposes to need more time to develop a location- it . . . is the last service-provider require originating service providers based web page to provide public facility through which a 911 trunk or and covered 911 service providers to notification of 911 unavailability than in administrative line passes before comply with any adopted rules that it developing systems to update and coming to a PSAP.’’ 47 CFR has proposed to harmonize PSAP outage maintain accurate contact information 9.19(a)(4)(i)(B). Under the current rules, notification requirements and ensure for official designated to receive outage a service provider that provides phone the receipt by PSAPs of more actionable notifications. The Commission seeks service to a PSAP but does not provide 911 outage information by April 1, 2022. comment on this proposal. specific 911-related services to the The Commission believes that the PSAP is considered a covered 911 revisions proposed in this document G. Benefits and Costs service provider due to its provision of constitute only minor changes to 54. For all foregoing proposals, the an ‘‘administrative line.’’ Neither the existing procedures and therefore Commission estimates the costs that its Commission’s rules nor its precedent believe that the time between adoption proposed rules would impose on all presently define the term of the rules, as well as subsequent Office service providers of approximately a ‘‘administrative line’’ for purposes of of Management and Budget (OMB) $2,398,000 one-time cost and a the Commission’s 911 reliability rules. approval, and the compliance date $4,557,000 annually recurring cost. The The Commission proposes to define would be sufficient. The Commission Commission tentatively concludes that ‘‘administrative line’’ for the purpose of seeks comment on this assessment. The the benefits of PSAP outage notification its 911 reliability framework as a Commission seeks comment on whether will be well in excess of these costs. business line or line group that connects allowing additional time for small- and Public safety benefits, however, are to a PSAP but is not used as the default medium-sized businesses to comply difficult to quantify. This difficulty in or primary route over which 911 calls with the requirements the Commission quantification, however, does not are transmitted to the PSAP. The proposes in this document would serve diminish in any way the benefits of Commission seeks comment on this the public interest. providing outage information to PSAPs. proposed definition. The Commission 52. The Commission proposes to The Commission finds that the benefits anticipates that this clarification will require originating service providers attributable to outage notification are simplify service providers’ and covered 911 service providers to substantial and may have significant determination of whether they are an update and maintain accurate contact positive effects on the abilities of PSAPs originating service provider or a covered information for officials designated to to safeguard the health and safety of 911 service provider. The Commission receive outage notifications at each residents during outages that threaten believes that this, in turn, will reduce PSAP in areas they serve no later than residents’ ability to reach 911. In the potential that a service provider fails April 1, 2022. While the Commission particular, the Commission expects that to file required 911 reliability expects that many originating service both the PSAP notification proposals certifications. This proposal appears to providers and covered 911 service and the customer notification proposals only accrue benefits, but the providers will already have accurate will provide the information necessary Commission nevertheless seeks contact information on hand for most if to allow consumers to reach emergency comment on its potential benefits and not all of the PSAPs in their service services more quickly during an outage costs. The Commission seeks comment areas, the Commission seeks to allow potentially affecting 911, thus reducing on this analysis and asks whether there sufficient time for them to further first responder times and improving are any potential ramifications from this develop and implement those public health and safety. The proposal of which the Commission is procedures pursuant to the Commission urges commenters to not aware. Commenters suggesting requirements that the Commission supply detailed examples of likely alternatives to this proposal should also proposes in this document (for example, benefits and estimates of their value include comment on anticipated costs by developing and transmitting an email where possible. and benefits. survey to their the best-known PSAP 55. The Commission’s one-time cost email address(es), following up as estimate of $2,398,000 consists of E. Codifying Adopted Rules appropriate, and identifying and $50,000 to create an email survey to 50. In 2016, the Commission adopted remedying any gaps in their PSAP biannually solicit PSAP contact a Report and Order that modernized the contact lists). The Commission seeks information, $99,000 to update PSAP Commission’s network outage reporting comment on this approach. outage notification templates, and rules. 81 FR 45055 (2016 Part 4 Order). 53. In addition, the Commission $2,249,000 to implement a website- One of those requirements, however, proposes that its 911 unavailability based framework that companies can was not at the time codified in the Code public notification framework, which use to notify their customers about of Federal Regulations. The part 4 rules would require originating and covered outages. The Commission’s estimate that exempt satellite and terrestrial wireless 911 service providers to provide their annually recurring costs of $4,557,000

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consist of $1,258,000 for notifying summarizing oral ex parte amended (RFA), requires that an agency PSAPs of outages that potentially affect presentations, and all attachments prepare a regulatory flexibility analysis them pursuant to the standards that the thereto, must be filed through the for notice and comment rulemakings, Commission proposes in this document, electronic comment filing system unless the agency certifies that ‘‘the rule $197,000 for identifying PSAPs that available for that proceeding, and must will not, if promulgated, have a could potentially be affected by a be filed in their native format (e.g. .doc, significant economic impact on a service outage, $197,000 for soliciting .xml, .ppt, searchable .pdf). Participants substantial number of small entities.’’ 5 from PSAPs appropriate contact in the proceeding should familiarize U.S.C. 601 through 12, as amended by information for outage notification, and themselves with the Commission’s ex Public Law 104–121. Accordingly, the $2,905,000 to publicly notify customers parte rules. Commission has prepared an Initial of 911 unavailability on company 57. Comment Filing Procedures. Regulatory Flexibility Analysis (IRFA) websites. The Commission seeks Pursuant to the Commission’s rules, concerning the possible significant comment on all these estimates. At this interested parties may file comments economic impact on small entities of the time, the Commission is unaware of and reply comments on or before the polices and rules contained in this alternative approaches with lower costs dates indicated on this notice of NPRM. 5 U.S.C. 603(b)(3). that would still ensure that PSAPs proposed rulemaking. Comments and 60. Initial Paperwork Reduction Act receive timely information about reply comments may be filed using the Analysis. This NPRM may contain outages that impact their service areas Commission’s Electronic Comment proposed new and modified information and ask commenters to provide detailed Filing System (ECFS). 47 CFR 1.415, collection requirements. The cost estimates. The Commission is 1.419; 63 FR 24121. Commission, as part of its continuing interested in possible alternatives from • Electronic Filers: Comments may be effort to reduce paperwork burdens, commenters, however, and seeks filed electronically using the internet by invites the general public to comment comment. Any suggestions of alternative accessing the ECFS. http://apps.fcc.gov/ on the information collection approaches should include both cost ecfs. requirements contained in this and benefit estimates. • Paper Filers: Parties who choose to document, as required by the Paperwork file by paper must file an original and Reduction Act of 1995 (PRA). Public IV. Procedural Matters one copy of each filing. If more than one Law 104–13. In addition, pursuant to 56. Ex Parte Presentations. The docket or rulemaking number appears in the Small Business Paperwork Relief proceedings shall be treated as ‘‘permit- the caption of this proceeding, filers Act of 2002, Public Law 107–198, see 44 but-disclose’’ proceedings in accordance must submit two additional copies for U.S.C. 3506(c)(4), the Commission seeks with the Commission’s ex parte rules. each additional docket or rulemaking specific comment on how it might 47 CFR 1.1200 through 1.1216. Persons number. ‘‘further reduce the information making ex parte presentations must file Filings can be sent by hand or collection burden for small business a copy of any written presentation or a messenger delivery, by commercial concerns with fewer than 25 memorandum summarizing any oral overnight courier, or by first class or employees.’’ presentation within two business days overnight U.S. Postal Service mail. All 61. Further Information. For further after the presentation (unless a different filings must be addressed to the information, contact Beau Finley, deadline applicable to the Sunshine Commission’s Secretary, Office of the Attorney-Advisor, Cybersecurity and period applies). Persons making oral ex Secretary, Federal Communications Communications Reliability Division, parte presentations are reminded that Commission. Public Safety and Homeland Security memoranda summarizing the D All hand-delivered or messenger- Bureau, at 202–418–7835, or via email presentation must (1) list all persons delivered paper filings for the at [email protected]. attending or otherwise participating in Commission’s Secretary must be the meeting at which the ex parte delivered to FCC Headquarters at 45 L V. Initial Regulatory Flexibility presentation was made and (2) St. NE, Washington, DC 20554. The Analysis summarize all data presented and filing hours are 8:00 a.m. to 7:00 p.m. 62. As required by the Regulatory arguments made during the All hand deliveries must be held Flexibility Act of 1980, as amended presentation. If the presentation together with rubber bands or fasteners. (RFA), the Commission has prepared consisted in whole or in part of the Any envelopes and boxes must be this Initial Regulatory Flexibility presentation of data or arguments disposed of before entering the building. Analysis (IRFA) of the possible already reflected in the presenter’s D Commercial overnight mail (other significant economic impact on a written comments, memoranda, or other than U.S. Postal Service Express Mail substantial number of small entities by filings in the proceeding, the presenter and Priority Mail) must be sent to 9050 the policies and rules proposed in this may provide citations to such data or Junction Drive, Annapolis Junction, MD NPRM. 5 U.S.C. 603. Written public arguments in his or her prior comments, 20701. comments are requested on this IRFA. memoranda, or other filings (specifying D U.S. Postal Service first-class, Comments must be identified as the relevant page and/or paragraph Express, and Priority mail must be responses to the IRFA and must be filed numbers where such data or arguments addressed to 45 L St. NE, Washington, by the deadlines for comments on this can be found) in lieu of summarizing DC 20554. NPRM. them in the memorandum. Documents 58. People with Disabilities. To shown or given to Commission staff request materials in accessible formats A. Need for, and Objectives of, the during ex parte meetings are deemed to for people with disabilities (braille, Proposed Rules be written ex parte presentations and large print, electronic files, audio 63. In this proceeding, the must be filed consistent with rule format), send an email to [email protected] Commission takes steps to improve the § 1.1206(b). In proceedings governed by or call the Consumer and Governmental reliability and resiliency of rule § 1.49(f) or for which the Affairs Bureau at 202–418–0530 (voice), telecommunications networks Commission has made available a or 202–418–0432 (tty). nationwide and 911 networks method of electronic filing, written ex 59. Regulatory Flexibility Act. The specifically so that the American public parte presentations and memoranda Regulatory Flexibility Act of 1980, as can continue to reach emergency

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services without undue delay or additional reporting, recordkeeping, means, and with the same frequency disruption. In particular, the NPRM and/or other compliance requirements that covered 911 service providers proposes and seeks comment on on small entities and entities of all sizes would be 30 minutes at a rate of $34 per measures to harmonize the that provide 911 services. Specifically, hour per notification (initial and follow- Commission’s Public Safety Answering the NPRM proposes (1) to harmonize the up) per outage. The actual cost that Points (PSAP) outage notification rules rules under which originating service originating service providers would such that all service providers must providers and covered 911 service incur to comply with this requirement notify all potentially affected PSAPs of providers notify PSAPs of outages; (2) to may be substantially lower than the outages in the same manner and with require originating service providers Commission’s estimate because, among more specific information. Furthermore, and covered 911 service providers to other things, some originating service the NPRM seeks comments on provide more specific and uniform providers service providers may have requirements that originating service material information to PSAPs in outage automated their PSAP outage providers and covered 911 service notifications as defined in § 4.9(h)(6) of notification processes. Similarly, the providers inform their customers when the Commission’s rules, as the Commission estimates the one-time cost 911 is unavailable to them due to Commission proposes to revise them; (3) for originating service providers and disruptions to provider networks. These to require originating service and covered 911 service providers to report proposals would apply to all originating covered 911 service providers to the same specific, actionable content in cable, satellite, wireless, wireline, annually identify the PSAPs that they their PSAP outage notifications as interconnected VoIP service providers serve and to elicit outage contact requiring 60 minutes at a one-time cost (‘‘originating service providers’’) as well information from them; (4) to require of $34 per hour per provider. This as to all covered 911 service providers said providers to supply the public with activity would allow a provider to and should make the nation’s 911 timely notification of 911 unavailability; incorporate additional informational service more reliable and the public and (5) to require covered 911 service elements into their existing mechanisms safer, while striking an appropriate providers notify the Commission within for gathering, approving, and balance between costs and benefits of an announced timeframe that they no transmitting information about 911 such regulation. The NPRM also longer provide covered 911 services to outages to PSAPs. Likewise, the proposes to codify rules adopted in PSAPs. The NPRM also proposes the Commission anticipates the actual cost 2016 extending the exemption of codification of an amendment to a rule that originating service providers and satellite and terrestrial wireless that the Commission adopted in 2016. covered 911 service providers would providers from reporting outages Specifically, the NPRM proposes to incur to comply with this proposal, if potentially affecting special offices and codify the extension of the exemption of adopted, may be substantially lower facilities. 2016 Part 4 Order. satellite and terrestrial wireless than the Commission’s estimate because providers from reporting outages the estimated number of service B. Description and Estimate of the potentially affecting special offices and providers that would be required to Number of Small Entities to Which the facilities. 2016 Part 4 Order. comply is conservatively broad. In the Proposed Rules Will Apply 66. The Commission is not currently NPRM, the Commission considers 64. The RFA directs agencies to in a position to determine whether, if whether originating and covered 911 provide a description of and, where adopted, the proposed rules in the service providers also should offer feasible, an estimate of the number of NPRM will require small entities to hire PSAPs graphical interface data attorneys, engineers, consultants, or small entities that may be affected by describing the geographic area other professionals. The Commission the proposed rules, if adopted. The RFA potentially affected by outages. In notes, however, that service providers generally defines the term ‘‘small addition, the Commission considers already perform measures that entity’’ as having the same meaning as whether to require originating and contribute to their ability to comply the terms ‘‘small business,’’ ‘‘small covered 911 service providers to notify with these requirements, and thus organization,’’ and ‘‘small governmental PSAPs of outages that do not meet the would likely ease the burden of jurisdiction.’’ 5 U.S.C. 601(6). In Commission’s reporting thresholds but compliance with these proposals, if addition, the term ‘‘small business’’ has could potentially affect 911 service. The adopted. For example, some service the same meaning as the term ‘‘small Commission anticipates that the record business concern’’ under the Small providers may already offer PSAPs follow-up notifications if additional will reflect variation in geographical Business Act.’’ 5 U.S.C. 601(3). A ‘‘small interface capabilities and proposed business concern’’ is one which: (1) Is material information becomes available. In addition, many service providers are PSAP notification thresholds, and thus independently owned and operated; (2) anticipate that the estimated costs to is not dominant in its field of operation; likely to already have documented procedures for notifying PSAPs of service providers will also vary. and (3) satisfies any additional criteria 68. In the NPRM, the Commission established by the SBA. 15 U.S.C. 632. outages that potentially affect them, and for those that do not, Alliance for also discusses the timeframe and costs Below is a list of such entities. for originating service providers and • Interconnected VoIP services; Telecommunications Industry Solutions • Wireline providers; (ATIS) Network Reliability Steering covered 911 service providers to • Wireless providers—fixed and Committee (NRSC) Task Force develop and implement procedures for mobile; documents can serve as a useful guide. gathering, maintaining, and updating • Satellite Service Providers; and Furthermore, many service providers PSAP contact information. The • Cable Service Providers. already regularly elicit PSAP outage Commission estimates that the cost for contact information. originating service providers and C. Description of Projected Reporting, 67. As discussed in the NPRM, the covered 911 service providers to Recordkeeping, and Other Compliance Commission estimates the timeframe maintain up-to-date contact information Requirements for Small Entities and incremental cost for originating for PSAPs in areas they serve would 65. The NPRM primarily proposes service providers to notify potentially take 30 minutes with a one-time cost of revisions to PSAP outage notification affected PSAPs about 911 outages $34 per hour per provider to develop a requirements that may impose new or within the same timeframe, by the same mechanism to elicit PSAP contact

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information. Working internally and materially affect 911 will likely be less differing compliance or reporting with other network operators to identify than the Commission’s estimates since requirements or timetables that take into PSAPs that could potentially be affected affected service providers need only account the resources available to small by an outage would take an estimated report outages that materially affect 911. entities; (2) the clarification, 120 minutes with an annual recurring Additionally, small entities will also consolidation, or simplification of rate of $34 per hour per provider. incur lower costs where the hourly rates compliance and reporting requirements Likewise, eliciting the appropriate for web developers, and general and under the rule for such small entities; contact information for outage operations managers are lower than (3) the use of performance rather than notification using the service provider’s those used in Commission estimates. In design standards; and (4) an exemption chosen PSAP contact information the NPRM, the Commission seeks from coverage of the rule, or any part collection mechanism would take an comments on its estimates and on thereof, for such small entities. 5 U.S.C. estimated 120 minutes with an annual alternative affordable methods of public 603(c)(1) through (4). recurring cost of $34 per provider. notification that balance the needs of 74. In the NPRM, the Commission Compliance with this proposed the public to know whether dialing 9– continues to facilitate the reliability of requirement may be substantially lower 1–1 will reach emergency services with the 911 system and meet its public than the Commission’s estimates the Commission’s commitment to safety obligations for oversight of the because the Commission’s rules already preserving public confidence in 911. integrity of the 911 communications require these service providers to notify 71. Based on the above discussion, the infrastructure by proposing measures to PSAPs of 911 outages and, as such, they Commission does not believe that the ensure that PSAPs can expect consistent should already have accurate PSAP costs and/or administrative burdens and timely outage notifications outage contact information. As associated with any of the proposal rule whenever there is an outage that discussed in the NPRM, standard changes will unduly burden small potentially affects 911 service. While operating procedures for updating PSAP entities. Furthermore, the Commission doing so, the Commission is mindful contact information in a centralized believes the value of the public safety that small entities and other 911 service PSAP contact database was approved by benefits generated by the Commission’s providers may incur costs should the the NRSC Task Force in November PSAP notification proposals outweigh proposals the Commission makes, and 2019. To the extent that service the estimated costs. The Commission the alternatives upon which the providers already have up to date PSAP anticipates that the proposed rule Commission seeks comment in the contact information, the Commission changes will enable PSAPs to accelerate NPRM, be adopted. does not anticipate that compliance the public’s ability to reach 911 call 75. The Commission has taken several with this proposed requirement would takers during an outage, reducing the steps that could reduce the economic impose any incremental costs. probability of lives lost during any such impact for small entities. First, the 69. The estimated costs for service outage. The Commission also believes elements for the proposed PSAP outage providers to notify their customers that these proposals could generate an notifications largely track the NRSC about 911 outages by providing material additional, incremental benefit by Task Force’s template. Therefore, to the information on their websites consist of helping people reach 911 call takers extent small entities have or will a one-time cost of $778 per provider to more quickly and by reducing first implement the ATIS NRSC Task Force’s implement a website-based outage responder response times. template, compliance with these notification framework and an annually 72. Notwithstanding the foregoing, to proposals should not impose significant recurring expected cost of $1,005 per the extent that service providers do not additional costs. Next, the Commission provider to notify customers of outages already elicit and refresh contact proposes an approach that establishes a that materially affect 911 using that information for individuals designated baseline expectation of shared framework. The one-time cost consists by the PSAP to receive outage information while otherwise preserving of the sum of a web developer’s hourly notifications, the Commission seeks to flexibility for service providers to rate ($60) multiplied by 10 hours to set allow sufficient time for them to determine the means by which they up an outage notification framework develop procedures for doing so, present this information to PSAPs and and a general and operations manager’s including, for example, by developing seek comment on the cost this flexible hourly rate ($89) multiplied by 2 hours an email survey to transmit to their the approach. Similarly, the Commission for project oversight. In calculating the best-known PSAP email address(es) or a does not specify the particular one-time cost, the Commission is aware secure web portal. In the discussion of procedures that service providers must that certain nationwide or large regional the proposals in the NPRM, the develop or follow to elicit PSAP contact service providers may have more Commission has also sought comments information. The Commission seeks sophisticated websites with multiple from the parties in the proceeding and comment on the costs and benefit of brands that would require more time to requested cost and benefit information implementing and maintaining these implement an outage notification which may help the Commission procedures. framework. The Commission also notes identify and evaluate relevant matters 76. To increase public awareness of however that most of these providers for small entities. 911 availability and to help protect the will have already implemented a public’s safety when 911 services are D. Steps Taken To Minimize the notification framework for other alerts disrupted, the Commission proposes to Significant Economic Impact on Small and important announcements that require service providers to notify their Entities and Significant Alternatives would reduce website development customers of 911 outages at the request costs. Considered of affected PSAPs within 60 minutes of 70. Small entities are also likely to 73. The RFA requires an agency to determining there is an outage by already have an alert notification describe any significant, specifically prominently posting notification of framework in place and would likewise small business, alternatives that it has material information on the main page have lower costs than estimated herein. considered in reaching its proposed of their websites and internet-related Similarly, the Commission believes that approach, which may include the applications. While the Commission small entities’ annual recurring costs to following four alternatives (among recognizes that other alternatives such notify customers of outages that others): (1) The establishment of as text messages, email messages, and

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phone calls, can all provide near-real- 79. The Commission expects to ■ c. Remove paragraph (c)(2)(iii); time methods to update the public on consider more fully the economic ■ d. Redesignate paragraph (c)(2)(iv) as how best to reach emergency services, impact on small entities following its paragraph (c)(2)(iii) and revise newly the Commission believes requiring review of comments filed in response to redesignated paragraph (c)(2)(iii); posting of notification via websites and the NPRM, including the costs and ■ e. Add the word ‘‘or’’ at the end of internet-related applications will benefits information. The Commission’s paragraph (e)(1)(iii); minimize the potential for consumer evaluation of the comments filed in this ■ f. Remove paragraph (e)(1)(iv); confusion and alerting fatigue and is proceeding will shape the final ■ g. Redesignate paragraph (e)(1)(v) as therefore in the public interest. The alternatives it considers, the final paragraph (e)(1)(iv) and revise newly Commission also believes this means of conclusions it reaches, and any final redesignated paragraph (e)(1)(iv); and ■ communication will not be a very actions it ultimately takes in this h. Revise paragraphs (f)(4), (g)(1)(i), resource intensive or costly method for proceeding to minimize any significant and (h). The revisions read as follows: small entities and other service economic impact that may occur on providers to provide notice to its small entities. § 4.9 Outage reporting requirements— customers as compared to for example, E. Federal Rules That May Duplicate, threshold criteria. text messages which are not deliverable Overlap, or Conflict With the Proposed (a) * * * to traditional wireline numbers, and Rules (4) Potentially affects a 911 special email addresses which service providers facility (as defined in § 4.5(e)), in which may not have for their customers. The 80. None. case they also shall notify the affected Commission seeks comment in the F. Legal Basis 911 facility in the manner described in NPRM on this approach and requiring The proposed action is authorized paragraph (h) of this section. Not later other methods of notification. pursuant sections 1, 4(i), 4(j), 4(o), than 72 hours after discovering the 77. To strike an appropriate balance 201(b), 214(d), 218, 251(e)(3), 301, outage, the provider shall submit between maintaining 911 network 303(b), 303(g), 303(r), 307, 309(a), 316, electronically an Initial reliability and public awareness of 911 332, 403, 615a–1, and 615c of the Communications Outage Report to the unavailability as well as associated Communications Act of 1934, as Commission. Not later than 30 days paperwork burdens, the Commission amended, 47 U.S.C. 151, 154(i), 154(j) after discovering the outage, the seeks comment on whether it should 154(o), 201(b), 214(d), 218, 251(e)(3), provider shall submit electronically a change the frequency with which 301, 303(b), 303(g), 303(r), 307, 309(a), Final Communications Outage Report to covered 911 service providers are 316, 332, 403, 615a–1, and 615c. the Commission. The Notification and required to file 911 reliability the Initial and Final reports shall certifications. The Commission also List of Subjects comply with all of the requirements of seeks comment on any steps that it has 47 CFR Part 4 § 4.11. not already proposed that it can take to Airports, Communications common * * * * * prevent the costs of these proposals carriers, Communications equipment, (c) * * * from becoming unduly burdensome for (2) * * * Reporting and recordkeeping small and medium-sized businesses. (iii) Potentially affecting a 911 special requirements, Telecommunications. Specifically, the NPRM seeks comment facility (as defined in § 4.5(e)) the on whether it would serve the public 47 CFR Part 9 affected 911 facility in the manner interest to allow additional time for Communications, Communications described in paragraph (h) of this small and medium-sized businesses to common carriers, Communications section. comply with the requirements the equipment, Internet, Radio, Reporting * * * * * Commission proposes in this document. and recordkeeping requirements, (e)(1) * * * 78. In response to the Commission’s Satellites, Security measures, (iv) That potentially affects a 911 request for comments in the NPRM, the Telecommunications, Telephone. special facility (as defined in § 4.5(e)), in Commission invites parties to propose which case they also shall notify the Federal Communications Commission. alternatives to the extent that these affected 911 facility in the manner proposals will impose new obligations Marlene Dortch, described in paragraph (h) of this on small entities. Specifically, the Secretary. section. Commission would like to see Proposed Rules * * * * * comments address whether small For the reasons discussed in the (f) * * * entities would benefit from different preamble, the Federal Communications (4) Potentially affects a 911 special reporting requirements or timetables Commission proposes to amend 47 CFR facility (as defined in § 4.5(e)), in which that take into account their limited parts 4 and 9 as follows: case they also shall notify-the affected resources; simplification or 911 facility in the manner described in consolidation of reporting requirements PART 4—DISRUPTIONS TO paragraph (h) of this section. Not later for small entities; or an exemption from COMMUNICATIONS than 72 hours after discovering the a requirement. the Commission invites outage, the provider shall submit commenters to (1) identify which ■ 1. The authority citation for part 4 electronically an Initial proposed requirements are particularly continues to read as follows: Communications Outage Report to the difficult or costly for small entities and Authority: 47 U.S.C. 34–39, 151, 154, 155, Commission. Not later than 30 days how different, simplified, or 157, 201, 251, 307, 316, 615a–1, 1302(a), and after discovering the outage, the consolidated requirements would 1302(b); 5 U.S.C. 301, and Executive Order provider shall submit electronically a address those difficulties, and (2) if any no. 10530. Final Communications Outage Report to modifications or exemptions from ■ 2. In § 4.9: the Commission. The Notification and requirements are sought, discuss what ■ a. Revise paragraph (a)(4); the Initial and Final reports shall would be the effect on public safety and ■ b. Add the word ‘‘or’’ at the end of comply with all of the requirements of the reliability of 911 operations. paragraph (c)(2)(ii); § 4.11.

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(g) * * * or covered 911 service provider offering customer to reach emergency services (1) * * * the notification; by dialing or texting 9–1–1 due to an (i) Within 240 minutes of discovering (ii) The name of the cable, satellite, outage that potentially affects a 911 that they have experienced on any wireless, wireline, interconnected VoIP, special facility as defined by § 4.5(e)(1). facilities that they own, operate, lease, or covered 911 service provider(s) (c) Notification timing and frequency. or otherwise utilize, an outage of at least experiencing the outage; (1) Cable, satellite, wireless, wireline, 30 minutes duration that potentially (iii) The date and time when the interconnected VoIP, and covered 911 affects a 911 special facility (as defined incident began (including a notation of service provider shall contact the in § 4.5(e)), in which case they also shall the relevant time zone); PSAP(s) affected by 911 unavailability notify the affected 911 facility in the (iv) The types of communications (as defined in paragraph (b) of this manner described in paragraph (h) of service(s) affected; section) as soon as possible after this section; or (v) Geographic area affected by the discovery of an outage but no later than * * * * * outage; 30 minutes after discovery to determine (vi) A statement of the notifying cable, (h) 911 Special facility outage what, if any, alternative means of satellite, wireless, wireline, notification. All cable, satellite, contact the PSAP would like made interconnected VoIP, or covered 911 wireless, wireline, interconnected VoIP, publicly available for the duration of the service provider’s expectations for how and covered 911 service providers (as incident. (2) Cable, satellite, wireless, the outage may affect the 911 special defined in 47 CFR 9.19(a)(4)) shall wireline, interconnected VoIP, and facility (e.g., dropped calls or missing notify a 911 special facility any official covered 911 service provider with metadata); customers experiencing 911 who has been designated by the affected (vii) Expected date and time of unavailability (as defined in paragraph 911 special facility as the provider’s restoration, including a notation of the (b) of this section) shall provide contact person(s) for communications relevant time zone; notification to potentially affected outages at the facility of any outage that (viii) The best-known cause of the customers as soon as possible, but no potentially affects that 911 special outage; later than within 60 minutes of facility (as defined in § 4.5(e)) in the (ix) A name, telephone number, and discovering that 911 is unavailable. The following manner. email address at which the notifying provider shall provide any subsequent (1) Appropriate contact information. cable, satellite, wireless, wireline, material updates regarding the Cable, satellite, wireless, wireline, interconnected VoIP, or covered 911 estimated time of 911 restoration to its interconnected VoIP, and covered 911 service provider can be reached for potentially affected customers as soon service providers shall annually identify follow-up; and as possible. and maintain up-to-date contact (x) A statement of whether the (d) Notification content. Notifications information appropriate for 911 outage message is the notifying cable, satellite, of 911 unavailability shall include: notification for each 911 special facility wireless, wireline, interconnected VoIP, (1) A statement that there is an outage that serves areas that the service or covered 911 service provider’s initial affecting 911 availability; providers serve. notification to the 911 special facility, (2) Alternative contact information to (2) Timing of notification. Cable, an update to an initial notification, or a reach emergency services at the request satellite, wireless, wireline, message intended to be the service of the affected PSAP(s), should such interconnected VoIP, and covered 911 provider’s final assessment of the information be available; service providers shall provide a 911 outage. (3) The time 911 service became outage notification to a potentially (5) Follow-up notification. Cable, unavailable; affected 911 special facility as soon as satellite, wireless, wireline, (4) The time the affected service possible, but no later than within 30 interconnected VoIP, and covered 911 provider estimates that 911 service will minutes of discovering that they have service providers shall communicate become available; and experienced on any facilities that they additional material information to (5) The locations where customers are own, operate, lease, or otherwise utilize, potentially affected 911 special facilities or are expected to be experiencing 911 an outage that potentially affects a 911 in notifications subsequent to the initial unavailability. (e) Notification medium. Each special facility, as defined in § 4.5(e). notification as that information becomes affected cable, satellite, wireless, (3) Means of notification. Cable, available, but cable, satellite, wireless, wireline, interconnected VoIP, and satellite, wireless, wireline, wireline and interconnected VoIP covered 911 service providers (as interconnected VoIP, and covered 911 providers shall send the first follow-up defined in 47 CFR 9.19(a)(4)) shall service providers’ 911 outage notification to potentially affected 911 prominently post the notification of 911 notifications must be transmitted by special facilities no later than two hours unavailability on the main page of its telephone and in writing via electronic after the initial contact. website and on any internet- or web- means in the absence of another method ■ 3. Add § 4.10 to read as follows: mutually agreed upon in advance by the based applications. 911 special facility and the covered 911 § 4.10 Public notification of 911 outages. PART 9—911 REQUIREMENTS service provider. (a) Notification breadth. All cable, (4) Content of notification. Cable, satellite, wireless, wireline, ■ 4. The authority citation for part 9 satellite, wireless, wireline, interconnected VoIP, and covered 911 continues to read as follows: interconnected VoIP, and covered 911 service providers (as defined in 47 CFR Authority: 47 U.S.C. 151–154, 152(a), service providers’ 911 outage 9.19(a)(4)) shall notify potentially 155(c), 157, 160, 201, 202, 208, 210, 214, 218, notifications must convey all available affected customers of 911 unavailability 219, 222, 225, 251(e), 255, 301, 302, 303, 307, material information about the outage. (as defined in paragraph (b) of this 308, 309, 310, 316, 319, 332, 403, 405, 605, For the purpose of this paragraph (h), section). 610, 615, 615 note, 615a, 615b, 615c, 615a– ‘‘material information’’ includes the (b) Notification threshold. For the 1, 616, 620, 621, 623, 623 note, 721, and following, where available: purposes of this section, 911 1471, unless otherwise noted. (i) The name of the cable, satellite, unavailability shall be defined as the ■ 5. In § 9.19, revise paragraph wireless, wireline, interconnected VoIP, continuous or intermittent inability of a (a)(4)(i)(B) to read as follows:

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§ 9.19 Reliability of covered 911 service digital reception are well-documented, which can be found in § 1.1204(a) of the providers. and that the Commission has recognized Commission’s rules, 47 CFR 1.1204(a). (a) * * * the deleterious effects of manmade See §§ 1.415 and 1.420 of the (4) * * * noise on the reception of digital VHF Commission’s rules for information (i) * * * signals. The Petitioner also believes that regarding the proper filing procedures (B) Operates one or more central the channel substitution will allow for for comments, 47 CFR 1.415 and 1.420. offices that directly serve a PSAP. For more efficient construction of WVPT’s List of Subjects in 47 CFR Part 73 purposes of this section, a central office post-incentive auction facilities. The directly serves a PSAP if it hosts a Petitioner explains that it initially Television. selective router or ALI/ANI database, planned to retune WVPT’s existing Federal Communications Commission. provides equivalent NG911 capabilities, Distributed Transmission System (DTS) Thomas Horan, or is the last service-provider facility transmitters from channel *11 to Chief of Staff, Media Bureau. through which a 911 trunk or channel *12, its repacked channel. The administrative line (i.e., a business line transmitter and antenna manufacturers, Proposed Rule or line group that connects to a PSAP however, were unable to support the For the reasons discussed in the but is not used as the default or primary planned retuning effort. Meanwhile, a preamble, the Federal Communications route over which 911 calls are structural analysis of WVPT’s existing Commission proposes to amend 47 CFR transmitted to the PSAP) passes before tower revealed that it could not support part 73 as follows: connecting to a PSAP. a replacement antenna for VHF channel * * * * * 12. According to the Petitioner, the PART 73—RADIO BROADCAST [FR Doc. 2021–13974 Filed 6–29–21; 8:45 am] tower can support a lighter weight UHF SERVICES antenna, and thus, allowing WVPT to BILLING CODE 6712–01–P ■ move to channel *15 will obviate the 1. The authority citation for part 73 need to construct a new tower, saving continues to read as follows: FEDERAL COMMUNICATIONS both time and money. It further states Authority: 47 U.S.C. 154, 155, 301, 303, COMMISSION that the proposed channel *15 facility 307, 309, 310, 334, 336, 339. will result in a net gain of 56,814 ■ 2. In § 73.622(i), amend the Post- 47 CFR Part 73 people, and while there is a loss area of Transition Table of DTV Allotments [MB Docket No. 21–248; RM–11910; DA 21– 27,033 people, only seven people would under Virginia by revising the entry for 694; FR ID 34410] lose their only PBS noncommercial Staunton to read as follows: educational service, a number the Television Broadcasting Services Commission considers de minimis. § 73.622 Digital television table of Staunton, Virginia This is a synopsis of the allotments. Commission’s Notice of Proposed * * * * * AGENCY: Federal Communications Rulemaking, MB Docket No. 21–248; (i) * * * Commission. RM–11910; DA 21–694, adopted June ACTION: Proposed rule. 15, 2021, and released June 15, 2021. Community Channel No. The full text of this document is SUMMARY: The Commission has before it available for download at https:// a petition for rulemaking filed by VPM ***** www.fcc.gov/edocs. To request materials Media Corporation (Petitioner), the in accessible formats (braille, large Virginia licensee of noncommercial educational print, computer diskettes, or audio television station WVPT (PBS), channel recordings), please send an email to *11, Staunton, Virginia. The Petitioner [email protected] or call the Consumer & ***** requests the substitution of channel *15 Government Affairs Bureau at (202) for channel *11 at Staunton in the DTV Staunton ...... * 15 418–0530 (VOICE), (202) 418–0432 Table of Allotments. (TTY). ***** DATES: Comments must be filed on or This document does not contain before July 30, 2021 and reply information collection requirements [FR Doc. 2021–13564 Filed 6–29–21; 8:45 am] comments on or before August 16, 2021. subject to the Paperwork Reduction Act BILLING CODE 6712–01–P ADDRESSES: Federal Communications of 1995, Public Law 104–13. In addition, Commission, Office of the Secretary, 45 therefore, it does not contain any L Street NE, Washington, DC 20554. In proposed information collection burden DEPARTMENT OF THE INTERIOR addition to filing comments with the ‘‘for small business concerns with fewer FCC, interested parties should serve than 25 employees,’’ pursuant to the Fish and Wildlife Service counsel for the Petitioner as follows: Ari Small Business Paperwork Relief Act of Meltzer, Esq., Wiley Rein LLP, 1776 K 2002, Public Law 107–198, see 44 U.S.C. 50 CFR Part 17 Street NW, Washington, DC 20006. 3506(c)(4). Provisions of the Regulatory [Docket No. FWS–R1–ES–2020–0060; FOR FURTHER INFORMATION CONTACT: Flexibility Act of 1980, 5 U.S.C. 601– FF09E22000 FXES11130900000 201] Joyce Bernstein, Media Bureau, at (202) 612, do not apply to this proceeding. 418–1647; or at [email protected]. Members of the public should note RIN 1018–BE72 SUPPLEMENTARY INFORMATION: In support that all ex parte contacts are prohibited Endangered and Threatened Wildlife of its channel substitution request, the from the time a Notice of Proposed and Plants; Removing Golden Petitioner states that the proposed Rulemaking is issued to the time the Paintbrush From the Federal List of channel substitution would resolve matter is no longer subject to Endangered and Threatened Plants significant over the air reception Commission consideration or court problems in the WVPT service area. The review, see 47 CFR 1.1208. There are, AGENCY: Fish and Wildlife Service, Petitioner states that the challenges of however, exceptions to this prohibition, Interior.

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ACTION: Proposed rule; availability of Document availability: This proposed existence. Based on an assessment of the draft post-delisting monitoring plan. rule and supporting documents, best available information regarding the including the species biological report status of and threats to the golden SUMMARY: We, the U.S. Fish and and the draft post-delisting monitoring paintbrush, we have determined that the Wildlife Service (Service), propose to plan, are available at http:// species no longer meets the definition of remove the golden paintbrush (Castilleja www.regulations.gov under Docket No. an endangered or threatened species levisecta) from the Federal List of FWS–R1–ES–2020–0060. under the Act. Endangered and Threatened Plants as it FOR FURTHER INFORMATION CONTACT: Because we will consider all no longer meets the definition of an Direct all questions or requests for comments and information we receive endangered or threatened species under additional information to: GOLDEN during the comment period, our final the Endangered Species Act of 1973, as PAINTBRUSH QUESTIONS, Brad determination may differ from this amended (Act). The golden paintbrush Thompson, State Supervisor, U.S. Fish proposal. Based on the new information is a flowering plant native to and Wildlife Service, Washington Fish we receive (and any comments on that southwestern British Columbia, western and Wildlife Office, 510 Desmond Drive new information), we may conclude that Washington, and western Oregon. Our SE, Suite 102, Lacey, WA 98503; the species should remain listed as review of the best available scientific telephone: 360–753–9440. If you use a threatened instead of being delisted, or and commercial data indicates threats to telecommunications device for the deaf we may conclude that the species the golden paintbrush have been (TDD), please call the Federal Relay should remain listed and be reclassified eliminated or reduced to the point that Service at 800–877–8339. as an endangered species. the species is not in danger of extinction or likely to become so in the foreseeable SUPPLEMENTARY INFORMATION: Information Requested future. We request information and Executive Summary Public Comments comments from the public regarding Why we need to publish a rule. Under this proposed rule and the draft post- We intend that any final action the Act, if we determine a plant species delisting monitoring plan for the golden resulting from this proposed rule will be is no longer an endangered or paintbrush. based on the best scientific and threatened species, we remove it from commercial data available and be as DATES: We will accept comments the Federal List of Endangered and accurate and as effective as possible. received or postmarked on or August 30, Threatened Plants (i.e., we ‘‘delist’’ it). Therefore, we request comments or 2021. Comments submitted A species is an ‘‘endangered species’’ information from governmental electronically using the Federal for purposes of the Act if it is in danger agencies, Native American Tribes, the eRulemaking Portal (see ADDRESSES, of extinction throughout all or a scientific community, industry, or any below), must be received by 11:59 p.m. significant portion of its range and is a other interested parties concerning this Eastern Time on the closing date. We ‘‘threatened species’’ if it is likely to proposed rule. must receive requests for a public become an endangered species within We particularly seek comments hearing, in writing, at the address the foreseeable future throughout all or concerning: shown in FOR FURTHER INFORMATION a significant portion of its range. The (1) Reasons why we should, or should CONTACT by August 16, 2021. golden paintbrush is listed as a not, remove the golden paintbrush from ADDRESSES: You may submit written threatened species. We are proposing to the List; comments by one of the following remove this species from the Federal (2) New biological or other relevant methods: List of Endangered and Threatened data concerning any threat (or lack Plants (List), because we have thereof) to the golden paintbrush, (1) Electronically: Go to the Federal determined that it no longer meets the including threats related to its eRulemaking Portal: http:// definition of a threatened species, nor pollinators; www.regulations.gov. In the Search box, does it meet the definition of an (3) New information on any existing enter Docket No. FWS–R1–ES–2020– endangered species. Delisting a species regulations addressing threats or any of 0060, which is the docket number for can only be completed by issuing a rule. the other stressors to the golden this rulemaking. Then, click on the What this document does. This rule paintbrush; Search button. On the resulting page, in proposes to remove (delist) the golden (4) New information on any efforts by the Search panel on the left side of the paintbrush from the Federal List of States, tribes, or other entities to protect screen, under the Document Type Endangered and Threatened Plants or otherwise conserve the species; heading, check the Proposed Rule box to under the Act because it no longer (5) New information concerning the locate this document. You may submit meets the definition of either a range, distribution, population size, or a comment by clicking on ‘‘Comment threatened species or an endangered population trends of this species; Now!’’ species. (6) New information on the current or (2) By hard copy: Submit by U.S. mail The basis for our action. Under the planned activities in the habitat or range to: Public Comments Processing, Attn: Act, we can determine that a species is of the golden paintbrush that may have FWS–R1–ES–2020–0060, U.S. Fish and an endangered or threatened species adverse or beneficial impacts on the Wildlife Service, MS: PRB/3W, 5275 based on any one or more of the species; and Leesburg Pike, Falls Church, VA 22041– following five factors or the cumulative (7) Information pertaining to post- 3803. effects thereof: (A) The present or delisting monitoring of the golden We request that you send comments threatened destruction, modification, or paintbrush. only by the methods described above. curtailment of its habitat or range; (B) Please include sufficient information We will post all comments on http:// overutilization for commercial, with your submission (such as scientific www.regulations.gov. This generally recreational, scientific, or educational journal articles or other publications) to means that we will post any personal purposes; (C) disease or predation; (D) allow us to verify any scientific or information you provide us (see the inadequacy of existing regulatory commercial information provided. Information Requested, below, for more mechanisms; or (E) other natural or Please note that submissions merely details). manmade factors affecting its continued stating support for, or opposition to, the

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action under consideration without negative and beneficial) affecting the for the golden paintbrush, as well as the providing supporting information, species. data and analysis contained in the although noted, will not be considered In accordance with our July 1, 1994, species biological report (Service 2019). in making a determination, as section peer review policy (59 FR 34270), our Proposed Delisting Determination 4(b)(1)(A) of the Act (16 U.S.C. 1531 et August 22, 2016, Director’s Memo on seq.) directs that determinations as to the Peer Review Process, and the Office Background whether any species is an endangered or of Management and Budget’s December Below, we summarize information for threatened species must be made 16, 2004, Final Information Quality the golden paintbrush directly relevant ‘‘solely on the basis of the best scientific Bulletin for Peer Review (revised June to this proposed rule. For more 2012), we solicited independent and commercial data available.’’ information on the description, biology, You may submit your comments and scientific reviews of the information ecology, and habitat of the golden materials concerning the proposed rule contained in the golden paintbrush paintbrush, please refer to the species by one of the methods listed in species biological report (Service 2019). biological report for golden paintbrush ADDRESSES. We request that you send We sent the report to four appropriate (Castilleja levisecta), completed in June comments only by the methods and independent specialists with 2019 (Service 2019, entire). The species described in ADDRESSES. knowledge of the biology and ecology of biological report is available under If you submit information via http:// the golden paintbrush and received Supporting Documents on http:// www.regulations.gov, your entire three responses. The report forms the www.regulations.gov in Docket No. submission—including any personal scientific basis for our 5-year status identifying information—will be posted review and this proposed rule. The FWS–R1–ES–2020–0060. Other relevant on the website. If your submission is purpose of peer review is to ensure that supporting documents are available on made via a hardcopy that includes our determination regarding the status the golden paintbrush’s species profile personal identifying information, you of the species under the Act is based on page on the Environmental may request at the top of your document scientifically sound data, assumptions, Conservation Online System (ECOS) at that we withhold this information from and analyses. The comments and https://ecos.fws.gov/ecp0/profile/ public review. However, we cannot recommendations of the peer reviewers speciesProfile?sId=7706. guarantee that we will be able to do so. have been incorporated into the species Species Description and Habitat We will post all hardcopy submissions biological report, as appropriate. In Information on http://www.regulations.gov. addition, we have posted the peer Comments and materials we receive, reviews on http://www.regulations.gov The golden paintbrush is native to the as well as, supporting documentation under Docket No. FWS–R1–ES–2020– northwestern United States and we used in preparing this proposed rule 0060. southwest British Columbia. It has been and the draft post-delisting monitoring historically reported from more than 30 Previous Federal Actions (PDM) plan, will be available for public sites from Vancouver Island, British inspection on http:// On May 10, 1994, we proposed to list Columbia, to the Willamette Valley of www.regulations.gov. the golden paintbrush as a threatened Oregon (Hitchcock et al., 1959; Sheehan species (59 FR 24106). On June 11, and Sprague 1984; Gamon 1995). The Public Hearing 1997, we finalized the listing (62 FR taxonomy of the golden paintbrush as a Section 4(b)(5) of the Act provides for 31740). The final rule included a full species is widely accepted as valid a public hearing on this proposal, if determination that the designation of by the scientific community (ITIS 2020). requested. Requests must be received by critical habitat for the golden paintbrush The golden paintbrush is a short-lived the date specified in DATES, above. Such was not prudent. perennial herb formerly included in the requests must be sent to the address In August 2000, we finalized a figwort or snapdragon family shown in FOR FURTHER INFORMATION recovery plan for the species (Service (Scrophulariaceae), with current CONTACT. We will schedule a public 2000, entire), which we supplemented classification in the Orobanchaceae hearing on this proposal, if requested, in May 2010 with the final recovery family. The genus Castilleja is and announce the date, time, and place plan for the prairie species of western hemiparasitic, with roots of of the hearing, as well as how to obtain Oregon and southwestern Washington paintbrushes capable of forming reasonable accommodations, in the (Service 2010, entire). parasitic connections to roots of other Federal Register and local newspapers On July 6, 2005, we initiated 5-year plants; however, paintbrush plants are at least 15 days before the hearing. For reviews for 33 plant and animal species, probably not host-specific (Mills and the immediate future, we will provide including the golden paintbrush, under Kummerow 1988, entire) and can grow these public hearings using webinars section 4(c)(2) of the Act (70 FR 38972). successfully, though not as well, even that will be announced on the Service’s The 5-year status review, completed in without a host. Golden paintbrush has website, in addition to the Federal September 2007 (Service 2007, entire), superior performance (survival, height, Register. The use of these virtual public resulted in a recommendation to number of flowering stems, number of hearings is consistent with our maintain the status of the golden fruiting stems, number of seed capsules) regulations at 50 CFR 424.16(c)(3). paintbrush as threatened. The 2007 5- where it co-occurs with certain prairie year status review is available on the species, including several perennial Supporting Documents Service’s website at https:// native forbs (e.g., common woolly Staff at the Washington Fish and ecos.fws.gov/docs/five_year_review/ sunflower or Oregon sunshine Wildlife Office (WFWO), in consultation doc1764.pdf. (Eriophyllum lanatum) and common with other species experts, prepared a On January 22, 2018, we initiated 5- yarrow (Achillea millefolium)), as well species biological report for golden year status reviews for 18 plant and as species in other functional groups, paintbrush. The report represents a animal species, including the golden including grasses (e.g., Roemer’s fescue compilation of the best scientific and paintbrush, and requested information (Festuca roemeri) and California commercial data available concerning on the species’ status (83 FR 3014). This oatgrass (Danthonia californica)) and the status of the species, including the proposed rule follows from the shrubs (e.g., snowberry impacts of past and present factors (both recommendation of that 5-year review (Symphoricarpos albus)) (Schmidt 2016,

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pp. 10–17). Anecdotal observations different years with seed from various of golden paintbrush plants year-to-year suggest that it grows poorly when wild populations suggests that (Dunwiddie and Martin 2016, p. 1). associated with annual grasses (Gamon germination rates can vary extremely Range, Distribution, Abundance, and 1995, p. 17). widely both between sites and between Trends of Golden Paintbrush Individual golden paintbrush plants years (Wentworth 1994, entire). have a median survival of 1 to 5 years, Germination tests also revealed that The golden paintbrush is endemic to but some plants can survive for more seeds likely remain viable in the wild the Pacific Northwest, historically than a decade (Service 2019, p. 7). for several years (Wentworth 1994, p. occurring from southeastern Vancouver Plants are up to 30 centimeters (cm) (12 17). Island and adjacent islands in British inches (in)) tall and are covered with Individuals of the golden paintbrush Columbia, Canada, to the San Juan soft, somewhat sticky hairs. Stems may require open prairie soils, near-bedrock Islands and Puget Trough in western be erect or spreading, in the latter case soils, or clayey alluvial soils with Washington and into the Willamette giving the appearance of being several suitable host plants. These suitable Valley of western Oregon (Fertig 2019, plants, especially when in tall grass. habitats occur from zero to 100 meters p. 23). The lower leaves are broader, with one (330 feet) above sea level (Service 2000, Currently, the species occurs within to three pairs of short lateral lobes. The p. 5). The golden paintbrush may have British Columbia, Washington, and bracts are softly hairy and sticky, golden historically grown in deeper soils, but Oregon, representing, generally, four yellow, and about the same width as the nearly all of these soils within the distinct geographic areas (British upper leaves. known range of the species have been Columbia, North Puget Sound, South Golden paintbrush plants typically converted to agriculture (Lawrence and Puget Sound, and the Willamette emerge in early March, with flowering Kaye 2006, p. 150; Dunwiddie and Valley). The species’ historical generally beginning the last week in Martin 2016, p. 1). distribution—before European April and continuing until early June. Populations currently occur on the settlement and modern development in Most plants complete flowering by early mainland in Washington and Oregon, the Pacific Northwest—is unknown. to mid-June, although occasionally and on islands in Washington and However, the species’ current plants flower throughout the summer British Columbia. Mainland and island distribution is generally representative and into October. Based on historical populations form two broad categories of the areas where we suspect the collections and observations, flowering of populations that can vary slightly in species occurred historically. seems to occur at about the same time habitat setting. Individuals in mainland Since its Federal listing in 1997, only throughout the species’ range. populations are found in open, one new wild population of golden Individual plants of golden paintbrush undulating remnant prairies dominated paintbrush has been discovered across typically need pollinators to set seed. by Roemer’s fescue and red fescue the species’ range (Service 2007, p. 6). Bumble bee species (Bombus) appear to (Festuca rubra) on gravelly or clayey All other new populations (referred to be the most common pollinators visiting glacial outwash. Individuals in island as sites or populations established since golden paintbrush (Wentworth 1994, p. populations are often on the upper the time of listing) across the range are 5; Kolar and Fessler 2006, in litt.; Waters slopes or rims of steep, southwest- or the result of reintroductions through 2018, in litt,; Kaye 2019, in litt.), west-facing sandy bluffs that are outplanting or direct seeding. Seeds although sweat bees (Halictidea), miner exposed to salt spray. Individuals in used to grow plugs for outplanting, and bee (Andrena chlorogaster), syrphid fly island populations may also occur on plant stock for seed production, were (Eristalis hirta), and bee fly (Bombylius remnant coastal prairie flats on glacial derived from occurrences that remained major) have also been observed visiting deposits of sandy loam. Island prairies at the time of listing (wild sites) (Service golden paintbrush plants (Kolar and may have historically been dominated 2019, p. 5). Fessler 2006, in litt.; Waters 2018, in by forbs and foothill sedge (Carex At the time of listing (see 62 FR litt,). tumulicola) rather than grasses (WDNR 31740; June 11, 1997), there were 10 Fruits typically mature from late June 2004b, pp. 11, 17); however, many known golden paintbrush populations: through July, with seed capsules island sites are now dominated by red 8 in Washington and 2 in British beginning to open and disperse seed in fescue or weedy forbs. All golden Columbia. No golden paintbrush August. By mid-July, plants at most sites paintbrush sites are subject to populations were known from Oregon at are in senescence (the process of encroachment by woody vegetation if the time of listing (Sheehan and Sprague deterioration with age), although this not managed. 1984, pp. 8–9; WDNR 2004b). Despite can vary considerably depending on Historically, fire was significant in its limited geographic range and available moisture. Capsules persist on maintaining open prairie conditions in isolation of populations, the golden the plants well into the winter, and parts of the range of the golden paintbrush retained exceptionally high often retain seed into the following paintbrush (Boyd 1986, p. 82; Gamon levels of genetic diversity, possibly spring. Seeds are likely shaken from the 1995, p. 14; Dunwiddie et al. 2001, p. because there were several large seed capsules by wind, with most 162). The golden paintbrush is a poor populations that remained (Godt et al. falling a short distance from the parent competitor, intolerant of shade cast by 2005, p. 87). plant (Godt et al. 2005, p. 88). The seeds encroaching tall nonnatives and litter Since its Federal listing, the are light (approximately 8,000 seeds/ duff in fire-suppressed prairies. Native distribution and abundance of golden gram) and could possibly be dispersed perennial communities are likely to paintbrush have increased significantly short distances by wind (Kaye et al. support more host species appropriate as a result of outplanting (seeding or 2012, p. 7). Additionally, there is at for the golden paintbrush than those plugging). In 2018, a minimum of 48 least one reported instance of short- dominated by nonnative annuals sites were documented (Service 2019, distance movement of seeds via vole (Lawrence and Kaye 2011, p. 173). pp. 11–14). In Washington, there are 19 activity (Kolar and Fessler 2006, in litt.). Thus, habitats with low presence of sites: 5 in the South Puget Sound prairie Therefore, natural colonization of new nonnative annuals and high presence of landscape, 6 in the San Juan Islands, 7 sites would likely occur only over short a diverse assemblage of perennial, on Whidbey Island, and 1 near distances as plants disperse from native prairie species are more likely to Dungeness Bay in the Strait of Juan de established sites. Germination tests in provide the best conditions for survival Fuca. In Oregon, there are 26 extant

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sites within the Willamette Valley. In private property (Service 2019, p. 12). nongovernmental organization, or are British Columbia, there are three extant The remaining 45 golden paintbrush under conservation easement. sites, each located on a separate island. sites are in either public ownership, are Of these 48 sites, only three are on owned by a conservation-oriented,

Current Distribution ofGolden Paintbrush Populations

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® Wild sll¢(eldaiit' !rt)997) * ~~di~ kiiom!!ters /\./Highways O 25 50 100 1 ·,, , .. , 1., .. , I I ■ Major Cities I I [I.I I I 01530 60 ['.] Stites Miles Q Counties D Bl'itish Columbia

Figure 1. Extant sites ("populations") of golden paintbrush across the species' known range.

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Trends in abundance for the golden condition. However, they are not direct seeding within the historical paintbrush have been consistently regulatory documents and do not range in Washington and Oregon, with monitored since 2004 (Fertig 2019, p. substitute for the determinations and perhaps the most significant being the 14), with refinements to monitoring promulgation of regulations required reestablishment of the golden protocols made in 2008 and 2011 under section 4(a)(1) of the Act. A paintbrush at a number of sites in (Arnett 2011, entire). As a whole, decision to revise the status of a species, Oregon’s Willamette Valley, where the abundance has substantially increased or to delist a species is ultimately based species was once extirpated. In addition from approximately 11,500 flowering on an analysis of the best scientific and to improved propagation techniques, plants in 2011, to over 560,000 commercial data available to determine substantial research has been conducted flowering plants counted in 2018 (Fertig whether a species is no longer an on the population biology, fire ecology, 2019, pp. 9–12). We attribute this rapid endangered species or a threatened and restoration of the golden paintbrush increase in abundance to the species, regardless of whether that (Dunwiddie et al. 2001, entire; Gamon development of direct seeding information differs from the recovery 2001, entire; Kaye 2001, entire; Kaye techniques for establishing new plan. and Lawrence 2003, entire; Swenerton populations, as opposed to outplanting There are many paths to 2003, entire; Wayne 2004, entire; WDNR individual plants (or plugs) grown in accomplishing recovery of a species, 2004b, entire; Lawrence 2005, entire; greenhouses. Most of the sites in and recovery may be achieved without Dunwiddie and Martin 2016, entire; Washington and Oregon’s Willamette all of the criteria in a recovery plan Lawrence 2015, entire; Schmidt 2016, Valley were established by being fully met. For example, one or entire). incorporating direct seeding. The more criteria may be exceeded while The results of these studies have been current population abundance is not other criteria may not yet be used to guide management of the necessarily reflective of the eventual accomplished. In that instance, we may species at sites being managed for native long-term population level at a site; determine that the threats are prairie and grassland ecosystems. Active however, as a number of reestablished minimized sufficiently and that the management to promote the golden sites are going through a period of species is robust enough that it no paintbrush is being done to varying prairie development/progression and longer meets the definition of an degrees (from targeted to infrequent) species succession. For example, at endangered species or a threatened across prairie and grassland sites. An some reestablished sites, abundance species. In other cases, we may discover active seed production program has initially increased over several years new recovery opportunities after having been maintained to provide golden then dropped to about 15–20 percent of finalized the recovery plan. Parties paintbrush seeds and other native the peak abundance (Fertig 2019, pp. seeking to conserve the species may use prairie plant seeds to land managers for 10–11, 15–21). Drops in abundance are these opportunities instead of methods population augmentation and somewhat expected as the populations identified in the recovery plan. restoration projects across the species’ stabilize after direct seeding, and we Likewise, we may learn new range in Washington and Oregon. anticipate that the long-term population information about the species after we Additionally, as recommended by the level at these re-established sites will finalize the recovery plan. The new recovery plan for the golden paintbrush meet recovery criteria. information may change the extent to (Service 2000, p. 31), the State of In contrast to the newly-established which existing criteria are appropriate Washington prepared a reintroduction golden paintbrush sites, there has been for identifying recovery of the species. plan for the Service as both internal and a steady decline in overall abundance at The recovery of a species is a dynamic external guidance (WDNR 2004a, the original wild sites (golden process requiring adaptive management entire). paintbrush occurrences that were extant that may, or may not, follow all of the Below are the delisting criteria at the time of listing) since about 2012. guidance provided in a recovery plan. described in the 2000 golden paintbrush Abundance at these sites dropped from Here, we provide a summary of recovery plan (Service 2000, p. 24), as just over 15,500 flowering plants in progress made toward achieving the supplemented in 2010, and the progress 2012, to just over 5,600 flowering plants recovery criteria for the golden made to date in achieving each in 2018 (Fertig 2019, p. 11). paintbrush. More detailed information criterion. related to conservation efforts can be Criterion 1 for Delisting Recovery Criteria found below under Summary of Section 4(f) of the Act directs us to Biological Status and Threats. We There are at least 20 stable develop and implement recovery plans completed a final recovery plan for the populations distributed throughout the for the conservation and survival of golden paintbrush in 2000 (Service historical range of the species. To be endangered and threatened species 2000, entire), and later supplemented deemed stable, a population must unless we determine that such a plan the plan for part of the species’ range in maintain a 5-year ‘running’ average will not promote the conservation of the 2010 (Service 2010, entire). The 2000 population size of at least 1,000 species. Recovery plans must, to the plan includes objective, measurable individuals, where the actual count maximum extent practicable, include criteria for delisting; however, the plan never falls below 1,000 individuals in ‘‘objective, measurable criteria which, has not been updated for 20 years, so any year. The golden paintbrush when met, would result in a some aspects of the plan may no longer technical team recommended in the determination, in accordance with the reflect the best scientific information 2007 5-year status review that this provisions [of section 4 of the Act], that available for the golden paintbrush. For criterion should be modified. Because it the species be removed from the list.’’ example, we did not anticipate the is impractical to count individual Recovery plans provide a roadmap for ability to rapidly establish large golden vegetative plants, the team us and our partners on methods of paintbrush populations through direct recommended that the criterion should enhancing conservation and minimizing seeding at the time the recovery plan be modified to specifically account for threats to listed species, as well as was developed. a recovered population as equal to 1,000 measurable criteria against which to Since about 2012, a significant flowering individuals and known to be evaluate progress towards recovery and increase in the number of new stable or increasing as evidenced by assess the species’ likely future populations has occurred, because of population trends (Service 2007, p. 3).

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While we did not officially amend or level of viability and significantly lower from development and land use that make an addendum to the recovery plan risk of extirpation than populations near would have long-term, wide-ranging to incorporate this recommendation, we 1,000 individuals. deleterious effects on this species. accepted that this is the best way to Finally, there are now a minimum of Additionally, 37 sites currently have count population abundance and more 26 golden paintbrush populations in management practices that at least recent surveys (starting about 2007) for western Oregon’s Willamette Valley, preserve essential characteristics of the species counted only flowering and these populations are distributed golden paintbrush habitat, and 24 sites plants. across at least three (Corvallis West, have management plans and resources The Service supplemented this Salem West, Portland, Eugene West) of for their implementation for at least the criterion in its 2010 recovery plan for the recovery zones (Kaye 2019, pp. 11– next year (Service 2019, pp. 40, 42–44). the prairie species of western Oregon 23) identified in the 2010 supplement to Additionally, two of the five and southwestern Washington by the species’ recovery plan (Service 2010, conservation easement sites are also identifying locations for golden pp. IV–4, IV–37). Therefore, significant enrolled in the Service’s Partners for paintbrush reintroductions, specifically progress has been made toward Fish and Wildlife Program, which to establish five additional populations achieving this criterion, and at some provides technical and financial distributed across at least three of the sites, the progress is well beyond assistance to private landowners to following recovery zones: Southwest numerical levels that were anticipated restore, enhance, and manage private Washington, Portland, Salem East, at the time of recovery criteria land to improve native habitat. At least Salem West, Corvallis East, Corvallis development. Although we three sites in Washington and 14 sites West, Eugene East, and Eugene West. acknowledge annual variability of in Oregon also support other prairie- Priority was given to reestablishing abundance across sites, at least six sites dependent species currently listed as populations in zones with historical across Washington and Oregon number endangered or threatened, and another records of golden paintbrush (Southwest in the tens of thousands of individuals five are part of designated critical Washington, Portland, Salem East, (Service 2019, pp. 12–13), which habitat for one of these species. Corvallis East) (Service 2010, p. IV–37). significantly surpasses the minimum Therefore, we anticipate prairie Progress: As of 2018, 23 populations 1,000 individual threshold. This management or maintenance will be averaged at least 1,000 individual plant increases our confidence that the overall ongoing at these golden paintbrush sites per year over the 5-year period from viability of the species is secured, for the foreseeable future. Two of the 2013 to 2018. Of these 23 populations, despite having fewer than 20 three extant sites in British Columbia 8 had a 5-year running average of at populations with a 5-year running that are managed by Parks Canada are least 1,000 individuals, and an average of at least 1,000 individuals. In also located within designated additional 5 populations had a 3-year addition, we now have the ability to ‘‘ecological reserves’’ (Service 2019, p. running average of at least 1,000 rapidly create new populations through 14). The level of management specific to individuals between 2016 and 2018 direct seeding, which is something that golden paintbrush varies at each site, (Hanson 2019, in litt.). While this does was not considered when we developed but all sites are generally being managed not meet the recovery criteria (of 20 this recovery criterion. to conserve and/or restore native prairie such populations), we find that many of Criterion 2 for Delisting or grassland habitats (for additional the species’ populations are sufficiently detail on species management status at resilient to make up for the smaller At least 15 populations over 1,000 sites, see discussion under Summary of number of populations based on the individuals are located on protected Biological Status and Threats, Factor A, following analysis. As noted above, we sites. In order for a site to be deemed below). only count flowering plants during protected, it must be either owned and/ monitoring, so in most years a or managed by a government agency or Criterion 3 for Delisting proportion of individual plants may not private conservation organization that Genetic material, in the form of seeds be represented in annual counts, identifies maintenance of the species as adequately representing the geographic because they are not flowering during the primary management objective for distribution or genetic diversity within surveys. the site, or the site must be protected by the species, is stored in a facility Six populations currently number in a permanent conservation easement or approved by the Center for Plant the tens of thousands of individuals, the covenant that commits present and Conservation. largest totaling just over 224,000 future landowners to the conservation of Progress: This recovery criterion is flowering plants (Pigeon Butte on Finley the species. met. Seeds are being stored at two National Wildlife Refuge) (Service 2019, Progress: This recovery criterion has approved facilities, the Rae Selling pp. 28–29). Prior to listing, the largest not been met as phrased in the recovery Berry Seed Bank at Portland State known population totaled just over plan, because the primary management University and the Miller Seed Vault at 15,000 individuals (Rocky Prairie objective of the protected sites is not the University of Washington Botanic Natural Area Preserve) (62 FR 31740; always to protect only golden Garden. In addition, the active seed June 11, 1997). Although it is likely that paintbrush. However, we find that the production programs at Center for a number of the more recently goal of the criterion, a significant Natural Lands Management and the established populations are still number of populations under Institute for Applied Ecology continue undergoing some level of stabilization, conservation ownership protective of to provide golden paintbrush seeds to population abundance at eight sites is the species that are likely to be self- land managers for population significantly greater (approximately sustaining over time, has been greatly augmentation and prairie restoration 10,000 or more flowering plants) than exceeded. Forty-five of the 48 golden projects. Production programs were the 1,000 individual threshold paintbrush sites are in either public started using seeds from nearly all the established at the time of the drafting of ownership, are owned by a extant populations at the time of listing the recovery plan for this species conservation-oriented, nongovernmental to maintain existing genetic diversity (Service 2019, pp. 12–13). Populations organization, or are under conservation across the historical range and to allow numbering in the tens of thousands of easement (Service 2019, p. 62). Such for the greatest opportunity for local individuals have a significantly higher ownership is expected to protect sites adaptation at reintroduction sites.

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Criterion 4 for Delisting across sites based on these same factors ‘‘likely to become an endangered Post-delisting monitoring of the (Service 2019, pp. 40, 42–44) (see species within the foreseeable future condition of the species and the status additional discussion regarding ongoing throughout all or a significant portion of of all individual populations is ready to site management under Summary of its range.’’ The Act requires that we begin. Biological Status and Threats, Factor A, determine whether any species is an Progress: We have developed a draft below). The most actively managed sites ‘‘endangered species’’ or a ‘‘threatened post-delisting monitoring plan in may include plantings, fencing, species’’ because of any of the following cooperation with our lead State partner prescribed fire, herbicide use for weed factors: (A) The present or threatened in Washington, Washington Department control, mowing, and controlled public destruction, modification, or of Natural Resources (WDNR) and in use. As described above under ‘‘Criterion 2 for Delisting,’’ at least 17 curtailment of its habitat or range; Oregon, Oregon Department of (B) Overutilization for commercial, Agriculture. The draft post-delisting sites currently contain multiple, prairie- dependent species and an additional 5 recreational, scientific, or educational monitoring plan is available for public purposes; review on http://www.regulations.gov sites are designated critical habitat for another prairie-dependent species. (C) Disease or predation; under Docket No. FWS–R1–ES–2020– (D) The inadequacy of existing 0060. We anticipate that the WDNR’s Those golden paintbrush sites that support multiple, prairie-dependent regulatory mechanisms; or Natural Heritage Program would (E) Other natural or manmade factors species listed under the Act are coordinate future monitoring of the affecting its continued existence. golden paintbrush if the species is anticipated to receive the most These factors represent broad delisted. In the post-delisting consistent ecological management into categories of natural or human-caused monitoring plan, we propose to monitor, the future. While this recovery criterion actions or conditions that could have an at a minimum, all populations has not been fully achieved (i.e., not all effect on a species’ continued existence. established and counted in 2018 that populations have post-delisting In evaluating these actions and were identified in the species biological management procedures in place), conditions, we look for those that may report (Service 2019, pp. 12–13). These ecological management of habitat is have a negative effect on individuals of populations would be monitored every expected to occur on the vast majority the species, as well as other actions or other year after final delisting for a 5- of the known sites and management will conditions that may ameliorate any year period (i.e., years 1, 3, and 5). occur on far more than the originally negative effects or may have positive Several key prairie conservation projected 15 sites identified above effects. partners may choose to monitor these under ‘‘Criterion 2 for Delisting.’’ We use the term ‘‘threat’’ to refer in golden paintbrush sites more frequently With the more recently identified general to actions or conditions that are and may also choose to monitor threat of hybridization from harsh known to or are reasonably likely to additional golden paintbrush sites as paintbrush (Castilleja hispida), negatively affect individuals of a more become established across the additional measures are being species. The term ‘‘threat’’ includes range in Oregon and Washington. Parks implemented and refined to address the actions or conditions that have a direct Canada oversees periodic monitoring of impacts to golden paintbrush on impact on individuals (direct impacts), the three extant populations within contaminated sites and prevent the as well as those that affect individuals British Columbia, Canada. Therefore, spread of harsh paintbrush to through alteration of their habitat or this recovery criterion is met. uncontaminated golden paintbrush required resources (stressors). The term sites. The Service has developed a ‘‘threat’’ may encompass—either Criterion 5 for Delisting strategy and guidance document for together or separately—the source of the Post-delisting procedures for the securing golden paintbrush sites and action or condition or the action or ecological management of habitats for has signed a memorandum of condition itself. all populations have been initiated. understanding (MOU) with prairie However, the mere identification of Progress: This criterion has not been conservation partners to ensure any threat(s) does not necessarily mean met as phrased in the recovery plan, hybridization is contained and the that the species meets the statutory because procedures for ecological conservation strategy is followed to definition of an ‘‘endangered species’’ or management for all populations are not benefit golden paintbrush while a ‘‘threatened species.’’ In determining in place. However, we find that the supporting recovery of other sympatric whether a species meets either intent of this criterion has been met (occurring within the same geographical definition, we must evaluate all because a substantial proportion of area) prairie species listed under the Act identified threats by considering the known golden paintbrush sites—more (Service et al. 2020) (for more on the species’ expected response and the than the 20 populations originally conservation strategy, see discussion effects of the threats—in light of those envisioned for these recovery criteria— under Summary of Biological Status and actions and conditions that will meet this criterion. As described earlier, Threats, Factor E, below). ameliorate the threats—on an significant strides have been made in Regulatory and Analytical Framework individual, population, and species the ecological management techniques level. We evaluate each threat and its for restoration and maintenance of Regulatory Framework expected effects on the species, then prairie landscapes and the Section 4 of the Act (16 U.S.C. 1533) analyze the cumulative effect of all of reintroduction and management of and its implementing regulations (50 the threats on the species as a whole. golden paintbrush at these and other CFR part 424) set forth the procedures We also consider the cumulative effect sites. The current level of management for determining whether a species is an of the threats in light of those actions varies across extant sites, influenced by ‘‘endangered species’’ or a ‘‘threatened and conditions that will have positive need, conservation partner capacity, and species.’’ The Act defines an effects on the species, such as any funding availability. We anticipate endangered species as a species that is existing regulatory mechanisms or ongoing management at a minimum of ‘‘in danger of extinction throughout all conservation efforts. The Secretary 37 of these sites, but note that the level or a significant portion of its range,’’ and determines whether the species meets of management will continue to vary a threatened species as a species that is the definition of an ‘‘endangered

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species’’ or a ‘‘threatened species’’ only provide consistent predictions within listing: (1) Succession of prairie and after conducting this cumulative that timeframe (IPCC 2014, p. 11). We grassland habitats to shrub and forest analysis and describing the expected consider 30 years a relatively lands (due to fire suppression, effect on the species now and in the conservative timeframe in view of the interspecific competition, and invasive foreseeable future. long-term protection afforded to 93 species); (2) development of property for The Act does not define the term percent of the species’ occupied sites commercial, residential, and ‘‘foreseeable future,’’ which appears in (45 of 48), which occur on conserved/ agricultural use; (3) low potential for the statutory definition of ‘‘threatened protected lands (Service 2019, p. 62). expansion and refugia due to species.’’ Our implementing regulations constriction of habitat (from Analytical Framework at 50 CFR 424.11(d) set forth a surrounding development or land use); framework for evaluating the foreseeable The species biological report (4) recreational picking (including future on a case-by-case basis. The term documents the results of our associated trampling); and (5) herbivory foreseeable future extends only so far comprehensive biological review of the (on plants and seeds) (62 FR 31740; June into the future as we can reasonably best scientific and commercial data 11, 1997). For our analysis, we assessed determine that both the future threats regarding the status of the species. The their influence on the current status of and the species’ responses to those report does not represent our decision the species, as well as the influence of threats are likely. In other words, the on whether the species should be two potential threats not considered at foreseeable future is the period of time reclassified as a threatened species the time of listing, hybridization of in which we can make reliable under the Act. It does, however, provide golden paintbrush with harsh predictions. ‘‘Reliable’’ does not mean the scientific basis that informs our paintbrush, and the impacts of climate ‘‘certain’’; it means sufficient to provide regulatory decisions, which involve the change. We also assessed current a reasonable degree of confidence in the further application of standards within voluntary and regulatory conservation prediction. Thus, a prediction is reliable the Act and its implementing mechanisms relative to how they reduce if it is reasonable to depend on when regulations and policies. The following or ameliorate existing threats to golden making decisions. is a summary of the key results and paintbrush. It is not always possible or necessary conclusions from the report, which can to define foreseeable future as a be found at Docket FWS–R1–ES–2020– Habitat Loss particular number of years. Analysis of 0060 on http://www.regulations.gov. At the time of listing, the principal the foreseeable future uses the best To assess golden paintbrush viability, cause of ongoing habitat loss was scientific and commercial data available we used the three conservation biology succession of prairie and grassland and should consider the timeframes principles of resiliency, redundancy, habitats to shrub and forest due to fire applicable to the relevant threats and to and representation (Shaffer and Stein suppression, interspecific competition, the species’ likely responses to those 2000, pp. 306–310). Briefly, resiliency and invasive species (62 FR 31740; June threats in view of its life-history supports the ability of the species to 11, 1997). The potential for characteristics. Data that are typically withstand environmental and development at, or surrounding, extant relevant to assessing the species’ demographic stochasticity (for example, sites for commercial, residential, and biological response include species- wet or dry, warm or cold years); agricultural purposes also posed a threat specific factors such as lifespan, redundancy supports the ability of the to the golden paintbrush at the time of reproductive rates or productivity, species to withstand catastrophic events listing. Both of these threat factors were certain behaviors, and other (for example, droughts, large pollution preventing or limiting extant demographic factors. events), and representation supports the populations from expanding and For species that are already listed as ability of the species to adapt over time recruiting into new or adjacent areas endangered or threatened species, this to long-term changes in the environment and afforded no refugia for the species analysis of threats is an evaluation of (for example, climate changes). In in the case of catastrophic events. both the threats currently facing the general, the more resilient and Currently, ongoing prairie or species and the threats that are redundant a species is and the more grassland management or maintenance reasonably likely to affect the species in representation it has, the more likely it occurs at the majority of extant golden the foreseeable future following the is to sustain populations over time, even paintbrush sites. This management delisting or downlisting and the under changing environmental includes removal or suppression of trees removal of the Act’s protections. A conditions. Using these principles, we and both native and nonnative woody recovered species is one that no longer identified the species’ ecological shrubs, as well as control of nonnative, meets the Act’s definition of an requirements for survival and invasive grassland plant species through endangered species or a threatened reproduction at the individual, a number of different approaches species. For the golden paintbrush, we population, and species levels, and according to species (e.g., mowing, consider 30 years to be a reasonable described the beneficial and risk factors prescribed fire, mechanical removal, period of time within which reliable influencing the species’ viability. We selective-herbicide application, predictions can be made for stressors use this information to inform our restoration reseeding, etc.). At least 24 and species’ response. This time period regulatory decision. of the 48 sites have prairie or grassland includes multiple generations of the management plans in place for the next golden paintbrush, generally includes Summary of Biological Status and 3 or more years. An additional 13 sites the term of and likely period of response Threats that lack a long-term management plan to many of the management plans for In this section, we review the for the golden paintbrush receive basic the species and/or its habitat, and biological condition of the species and maintenance to preserve the prairie encompasses planning horizons for its resources, and the threats that characteristics of golden paintbrush prairie habitat conservation efforts (e.g., influence the species’ condition in order habitat (Service 2019, pp. 42–44). Three Dunwiddie and Bakker 2011, pp. 86–88; to assess the species’ overall viability golden paintbrush sites in Washington Service 2011, entire; Altman et al. 2017, and the risks to that viability. The also currently support other prairie- or pp. 6, 20); additionally, various global following potential threats were grassland-dependent species listed climate models and emission scenarios identified for this species at the time of under the Act—the endangered Taylor’s

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checkerspot butterfly (Euphydryas the long-term investments conservation the golden paintbrush in the foreseeable editha taylori) and three subspecies of partners have made, and continue to future. Mazama pocket gopher (Thomomys make, to restore, rebuild, maintain, and mazama spp.) (Olympia pocket gopher conserve these relatively rare regional Recreational Picking and Trampling (Thomomys mazama pugetensis), ecosystems (Dunwiddie and Bakker At the time of listing, we considered Tenino pocket gopher (Thomomys 2011, entire; Center of Natural Lands overutilization from recreational picking mazama tumuli), and Yelm pocket Management 2012, in litt., entire; The (flowers) to be a threat (62 FR 31740; gopher (Thomomys mazama News Tribune 2014, in litt.; Altman et June 11, 1997). Our concern with yelmensis))—while an additional five al. 2017, entire; The Nature recreational picking or collection of sites are included in designated critical Conservancy 2019, in litt., entire). habitat for the Taylor’s checkerspot Golden paintbrush now occurs at 48 flowers was that it would reduce overall butterfly. separate sites, as a result of the potential seed-set at a site. Concern has Although these five critical habitat numerous reintroduction efforts also been noted regarding the direct sites are currently unoccupied by the implemented to recover this species. harvesting of seed capsules (Dunwiddie butterfly, they were designated because Only three of these sites are on lands in litt. 2018). Although there is evidence they were found to be essential to the possibly subject to future development. of occasional recreational or possible conservation of Taylor’s checkerspot The remaining 45 sites are all under commercial collection of capsules that butterfly (78 FR 61452; October 3, 2013). some type of public or conservation reduced the amount of seed available on Specifically, these areas will be ownership (Service 2019, pp. 11–14). Of a site, collection is no longer considered managed in a way that is conducive for the 48 extant sites, at least 81 percent a significant stressor to the species eventual reintroduction of Taylor’s (n=39) are on land with some known across its range (Service 2019, p. 47). In checkerspot butterflies, which will level of protected status (at a minimum, addition, the current number of maintain the prairie ecosystem formally protected as a natural area or established and protected golden characteristics that are supportive of other such designation, although not all paintbrush sites, many with limited or long-term conservation of the golden of these designations are permanent) restricted access, largely ameliorates paintbrush. In addition, at least 14 (Service 2019, pp. 42–44). In addition, this previously identified threat. We golden paintbrush sites in Oregon’s of the 39 sites with some protected land acknowledge that the golden paintbrush Willamette Valley currently support one status, 19 also include stipulations for, is likely a desirable species for some or more other prairie- or grassland- or statements of specific protection of, gardeners or plant collectors. However, dependent species listed under the perpetual management of the golden if delisted, golden paintbrush seeds or Act—the endangered Fender’s blue paintbrush. plants are likely to become available butterfly (Icaricia icarioides fenderi), Although the total area occupied by through controlled sale to the public endangered Willamette daisy (Erigeron the golden paintbrush at 19 sites is from regional prairie conservation decumbens), threatened Kincaid’s relatively small (less than 0.4 hectare lupine (Lupinus oreganus var. kincaidii, (ha) (1 acre (ac)), 14 sites have from partners and/or regional native plant listed as Lupinus sulphureus ssp. between 2 to 18.6 occupied ha (5 to 46 nurseries, similar to what occurs with kincaidii), and threatened Nelson’s ac) (Service 2019, pp. 37–38). All but other non-listed prairie plant species. checker-mallow (Sidalcea nelsoniana) four sites have available land for future For these reasons, we do not expect the (Institute for Applied Ecology 2019, in golden paintbrush population possible collection of golden paintbrush litt.). expansion or shifts in distribution. Of flowers or seeds to become a threat to We expect a number of these golden the 34 sites with less than 2 ha (5 ac) the species in the foreseeable future. paintbrush sites in both Washington and of occupied habitat, 10 have an At the time of listing, we identified Oregon to continue to be managed in a estimated range of 0.8 to 2 ha (2 to 5 ac) trampling of golden paintbrush plants way that supports the recovery of other of additional habitat for expansion, and by recreationalists as impacting the prairie- or grassland-dependent species at least 13 have an estimated range of 2 species at some sites with high levels of in addition to the long-term to 6 ha (5 to 15 ac) of additional habitat public use, especially where and when conservation of the golden paintbrush. for future expansion (Service 2019, pp. associated with recreational picking of As long as periodic management or 37–38). In addition, the species is much golden paintbrush flowers. Although maintenance continues to occur at less reliant on expanding site-use and some risk of trampling to plants will golden paintbrush sites across the refugia than at the time of listing, when always be present across public sites species’ range, the threat of prairie or only 10 extant sites of the golden (e.g., State parks, national wildlife grassland succession is expected to paintbrush remained. The refuges), most sites often have some remain adequately addressed into the reintroduction and seed production foreseeable future. State and Federal techniques developed for golden level of restricted access when golden management plans include specific paintbrush recovery have provided the paintbrush plants are in bloom (e.g., objectives to continue to protect and means to more easily establish or fenced from deer or inaccessible to the conserve the golden paintbrush at a reestablish populations at prairie public) or there are defined walking or number of sites (see Factor D restoration sites. Many of these sites viewing areas. Therefore, when discussion, below). States, Federal have been specifically acquired for their compared with the potential impact of agencies, and conservation potential overall size, conservation trampling at the time of listing, the organizations have invested significant value, and conservation status. The current impact is likely insignificant, resources into golden paintbrush golden paintbrush has been due to the number of reestablished recovery, as well as general prairie and reintroduced and established at prairie golden paintbrush sites, the large size of grassland restoration and conservation restoration sites that are well distributed many of these sites, and considerable for a variety of at-risk prairie-dependent across the species’ historical range, well abundance of golden paintbrush plants species. We do not anticipate habitat for beyond the 10 extant sites at the time of at some of these sites. For the above these prairie-dependent species to listing. As a result of these conditions, reasons, we also do not anticipate that contract further given the limited we do not anticipate development in or trampling will become a threat in the amount of remaining prairie habitat and around these sites to become a threat to foreseeable future.

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Herbivory evaluation and additional observations all prairie conservation partners in the At the time of listing, we considered in the field, hybridization with the range of the golden paintbrush. The predation (herbivory) on the golden harsh paintbrush has now been three agencies have authority over these paintbrush by native (voles and deer) identified as a significant potential species and will oversee most prairie and introduced (rabbits) species to be a threat to golden paintbrush populations restoration efforts in Washington, threat to the plant (62 FR 31740; June where the two species occur together or particularly in south Puget Sound. This 11, 1997). Deer continue to exhibit in close proximity (Clark 2015, entire; MOU is expected to facilitate awareness significant herbivory on the golden Sandlin 2018, entire). Three former and compliance with the hybridization paintbrush at some sites; however, there golden paintbrush recovery sites have strategy and guidance by our prairie conservation partners. The formal is annual and site-specific variability in now been discounted by the Service for adoption and implementation of the the overall level of herbivory (Service the purposes of recovery due to the level hybridization strategy and guidance is 2019, p. 48). Herbivory impacts from of hybridization at these sites (Service expected to prevent hybridization from voles on the golden paintbrush have not 2019, p. 15). At least one other site is becoming a threat to the golden been broadly or consistently observed currently vulnerable to the effects of paintbrush in the foreseeable future. and also appear to be variable across hybridization, but management efforts sites and years. Where herbivory by deer to date (removal of plants that exhibit Climate Change and/or rabbits has been significant, hybrid characteristics and creation of a zone of separation between harsh At the time of listing, the potential control with fencing has been impacts of climate change on the golden successfully implemented, but paintbrush and golden paintbrush areas at the site) have seemingly preserved paintbrush was not discussed. The term controlling herbivory through fencing ‘‘climate’’ refers to the mean and over large areas is limited by cost this golden paintbrush population. Currently, hybridization appears to be variability of relevant quantities (i.e., (Service 2019, p. 48). In addition, temperature, precipitation, wind) over encouraging localized reduction of deer confined to those areas located in the south Puget Sound prairie region where time (IPCC 2014, pp. 119–120). The populations through lethal removal near term ‘‘climate change’’ thus refers to a some sites (Washington Department of both species of Castilleja were used at some of the same habitat restoration change in the mean or variability of one Fish and Wildlife 2019, in litt.; Pelant or more measures of climate (e.g., 2019, in litt.) and installing raptor perch sites. The only known incident of hybridization outside of this region was temperature or precipitation) that poles to control rodents and rabbits at persists for an extended period, at Steigerwald Lake National Wildlife some sites are also being implemented typically decades or longer, whether the Refuge in southwestern Washington, to reduce impacts of herbivory on the change is due to internal processes or where we unknowingly used a seed mix golden paintbrush (Service 2019, p. 48). anthropogenic changes (IPCC 2014, p. that included the harsh paintbrush. This As a consequence of the significant 120). increase in the number of golden site has since been eradicated of both Scientific measurements spanning paintbrush sites that have been Castilleja species, but we anticipate several decades demonstrate that successfully established since the reintroducing the golden paintbrush to changes in climate are occurring. In species was listed, and because the the site in the future (Ridgefield particular, warming of the climate impact of herbivory is being National Wildlife Refuge Complex 2019, system is unequivocal, and many of the successfully managed in at least a in litt., entire). observed changes in the last 60 years are portion of those sites where noted as As a response to this emerging threat, unprecedented over decades to significant (potential site/population efforts were implemented, and are millennia (IPCC 2014, p. 2). The current level effect), we conclude predation ongoing, to reduce or eliminate the risk rate of climate change may be as fast as (herbivory) no longer has a significant of hybridization to the golden any extended warming period over the impact across the majority of the golden paintbrush. These include efforts such past 65 million years and is projected to paintbrush’s 48 sites/populations, nor at as maintaining isolated growing areas accelerate in the next 30 to 80 years the species level, and is unlikely to for the golden paintbrush and harsh (National Research Council 2013, p. 5). become a threat to the species in the paintbrush at native seed production Thus, rapid climate change is adding to foreseeable future. facilities used in prairie restoration other sources of extinction pressures, efforts, maintaining buffers between such as land use and invasive species, Hybridization golden paintbrush and harsh paintbrush which will likely place extinction rates A potential threat to the golden patches at sites where both species are in this era among just a handful of the paintbrush identified after the species currently present, and delineating severe biodiversity crises observed in was listed in 1997 was the impact of which of the two species will be used Earth’s geological record (AAAS 2014, hybridization with the harsh paintbrush at current and future prairie p. 7). (Castilleja hispida). The harsh conservation or restoration sites. We Global climate projections are paintbrush is one of the host plants recently developed a strategy and informative, and in some cases, the only introduced to prairie sites targeted for guidance document for securing golden or the best scientific information endangered Taylor’s checkerspot paintbrush sites to address containment available for us to use. However, butterfly recovery efforts. Our 2007 5- of hybridization at existing projected changes in climate and related year status review recommended ‘‘the contaminated sites and prevention of impacts can vary substantially across evaluation of the potential for genetic unintentional spread of hybridization to and within different regions of the contamination of golden paintbrush other regions within the golden world (e.g., IPCC 2013, 2014; entire) and populations by hybridization with other paintbrush’s range, specifically north within the United States (Melillo et al. species of Castilleja’’ (Service 2007, p. Puget Sound and the Willamette Valley 2014, entire). Therefore, we use 15). After initial evaluation, the (Service et al. 2020). We have also ‘‘downscaled’’ projections when they potential risk of hybridization was entered into an associated MOU with are available and have been developed considered relatively low and the Washington Department of Fish and through appropriate scientific manageable (Kaye and Blakeley-Smith Wildlife and WDNR to ensure the procedures, because such projections 2008, p. 13). However, after further strategy is implemented as agreed to by provide higher resolution information

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that is more relevant to spatial scales this time. Climate change could result in mechanisms relative to how they reduce used for analyses of a given species (see a decline or change in bumble bee or ameliorate threats to the species Glick et al. 2011, pp. 58–61, for a diversity within the range of the golden absent the protections of the Act. discussion of downscaling). paintbrush (Soroye et al. 2020, entire); Therefore, we examine whether other Climate change trends predicted for the bumble bee is an important regulatory mechanisms would remain in the Pacific Northwest (Oregon, pollinator for the golden paintbrush. place if the species were delisted, and Washington, Idaho, and Montana) However, there are limited data at this the extent to which those mechanisms broadly consist of an increase in annual time to indicate this is a specific and will continue to help ensure that future average temperature; an increase in present threat to the golden paintbrush. threats will be reduced or eliminated. At extreme precipitation events; and, with In summary, climate change is the time of listing (62 FR 31740; June less certainty, variability in annual affecting, and will continue to affect, 11, 1997), we noted that habitat precipitation (Dalton et al. 2013, pp. 31– temperature and precipitation events management for the golden paintbrush 38, Figure 1.1; Snover et al. 2013, pp. 5– within the range of the golden was not assured, despite the fact that 1–5–4). paintbrush. The extent, duration, and most populations occurred in areas According to the NatureServe Climate impact of those changes are unknown, designated as reserves or parks that Vulnerability Index, the golden but could potentially increase or typically afforded the golden paintbrush paintbrush has experienced mean decrease precipitation in some areas. and its habitat some level of protection annual precipitation variation over the The golden paintbrush may experience through those designations. As last 50 years ranging from 53 cm to 130 climate change-related effects in the discussed in our species biological cm (21 to 51 in), resulting in a rating of future, most likely at the individual or report (Service 2019), the threat of ‘‘Somewhat Decreased Vulnerability’’ to local population scale. Regional habitat loss from potential residential or climate change (Young et al. 2011, pp. occurrences may experience some commercial development has decreased 26–27; Gamon 2014, pp. 1, 5; Climate shifts; however, we anticipate the since the time of listing due to the Change Sensitivity Database 2014, in species will remain viable, because: (1) establishment of new golden paintbrush litt., p. 4). Prolonged or more intense It is more resilient than at the time of populations on protected sites. summer droughts are likely to increase listing as a result of increased Although a few privately owned sites in the Pacific Northwest due to climate geographic distribution in a variety of are still at some potential risk, change (Snover et al. 2013, p. 2–1). Even ecological settings; (2) available development is no longer considered a though the golden paintbrush senesces information indicates the golden significant threat to the viability of the as the prairies dry out in the summer, paintbrush is somewhat adaptable to golden paintbrush due to the number of increased intensity or length of drought some level of future variation in sites largely provided protection from conditions will likely stress plants and climatic conditions (Service 2019, pp. development (Service 2019, pp. 12–14). increase mortality, resulting in reduced 22–25, 45); (3) there are ongoing efforts numbers of individuals in populations to expand the golden paintbrush to Federal at less-than-optimal sites (Kaye 2018, in additional suitable sites; and (4) we now National Environmental Policy Act— litt.). have the technical ability to readily The National Environmental Policy Act As is the case with all stressors we establish populations, which could help requires Federal agencies to consider assess, even if we conclude that a to mitigate any future population losses. the environmental effects of their species is currently affected or is likely Therefore, based upon the best available proposed actions (NEPA; 42 U.S.C. 4321 to be affected in a negative way by one scientific and commercial information, et seq.). Federal agency NEPA analyses or more climate-related impacts, it does we conclude that climate change does may identify and disclose potential not necessarily follow that the species not currently pose a significant threat, effects of Federal actions on the golden meets the definition of an ‘‘endangered nor is it likely to become a significant paintbrush if the species is delisted. species’’ or a ‘‘threatened species’’ threat in the foreseeable future (next 30 However, NEPA does not require that under the Act. Knowledge regarding the years), to the golden paintbrush. adverse impacts be mitigated, only vulnerability of the species to, and disclosed. Therefore, it is unclear what known or anticipated impacts from, Voluntary and Regulatory Conservation level of protection would be conveyed climate-associated changes in Mechanisms to the golden paintbrush through NEPA, environmental conditions can be used Section 4(b)(1)(A) of the Act requires in the absence of protections under the to help devise appropriate conservation the Service to take into account ‘‘those Act. strategies. efforts, if any, being made by any State Sikes Act—One golden paintbrush Predicted environmental changes or foreign nation, or any political site currently occurs on a Federal resulting from climate change may have subdivision of a State or foreign nation, military installation (Forbes Point, both positive and negative effects on the to protect such species.’’ We interpret Naval Air Station Whidbey Island in golden paintbrush, depending on the this language to require us to consider Island County, Washington) and is extent and type of impact and relevant Federal, State, and Tribal laws, managed under an integrated natural depending on site-specific conditions regulations, and other such mechanisms resources management plan (INRMP) within each habitat type. The primary that may minimize any of the threats or (USDOD 2012, pp. 4–6) authorized by predicted negative effect is drought otherwise enhance conservation of the the Sikes Act (16 U.S.C. 670 et seq.). conditions resulting in inconsistent species. We give the strongest weight to Special management and protection growing seasons. This effect will likely statutes and their implementing requirements for golden paintbrush be buffered by the ability of the golden regulations and to management habitat in the INRMP include paintbrush to survive in a range of soil direction that stems from those laws and maintenance of a 10-ac management conditions, with a number of different regulations; an example would be State area for the species, including host plants, and under a range of governmental actions enforced under a maintaining and improving a fence precipitation levels. We have not State statute or constitution or Federal around the population to exclude both identified any predicted environmental action under the statute. people and herbivores, posting signs effects from climate change that may be For currently listed species, we that state the area is accessible to positive for the golden paintbrush at consider existing regulatory ‘‘authorized personnel only,’’ mowing

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and hand-cutting competing shrubs habitat on the NWR, which supports the Endangered Species Act—The golden from the area, outplanting nursery- golden paintbrush (Service 2013a, pp. paintbrush often co-occurs with other grown plants from seeds previously 4–9—4–10). These activities include plant and animal species that are listed collected on site, and implementing various methods (e.g., mechanical and under the Act, such as the endangered additional habitat management actions chemical) for reducing encroachment of Willamette daisy and endangered that are identified in the future to woody species, controlling nonnative Taylor’s checkerspot butterfly. enhance the golden paintbrush and invasive plant species, and Therefore, some of the general habitat population such as control burns or reestablishing native grasses and forbs. protections (e.g., section 7 consultation herbicide control of competing Given the 15-year timeframe of CCPs, and ongoing recovery implementation vegetation (USDOD 2012, pp. 3–5). protections outlined in the Tualatin efforts, including prairie habitat These protections are effective in River NWR CCP are expected to remain restoration, maintenance, and protecting the golden paintbrush on this in place until at least 2028, regardless of protection) for these other prairie- site and are expected to continue in the the golden paintbrush’s Federal listing dependent, listed species will indirectly absence of protections under the Act status. extend to some golden paintbrush sites because the Sikes Act mandates the Dungeness NWR also finalized a CCP if we delist the golden paintbrush. Department of Defense to conserve and in 2013 (Service 2013b, entire). The CCP Protections in Canada—The golden rehabilitate wildlife, fish, and game on does not have any conservation actions paintbrush in Canada is currently military reservations. specific to the golden paintbrush federally listed as ‘‘endangered’’ under National Wildlife Refuge System identified; however, it does identify the Species at Risk Act (SARA) Improvement Act—Ten golden general actions taken to control (COSEWIC 2007, entire). SARA paintbrush sites currently occur on nonnative and invasive plant species regulations protect species from harm, National Wildlife Refuge (NWR) lands that invade habitats on the refuge, possession, collection, buying, selling, (Dungeness NWR in Washington, and including those inhabited by the golden or trading (Statutes of Canada 2002, c. Ankeny, William L. Finley, Tualatin paintbrush (Service 2013b, pp. 4–44— 29). SARA also prohibits damage to or River, and Baskett Slough NWRs in 4–45). The golden paintbrush site at this destroying the habitat of a species that Oregon). As directed by the National NWR’s headquarters continues to be is listed as an endangered species. The Wildlife Refuge System Improvement maintained and protected. In addition to population at Trial Island is on Act of 1997 (Pub. L. 105–57), refuge specific protections for the golden Canadian federal lands protected under managers have the authority and paintbrush provided under CCPs, the SARA (COSEWIC 2011, in litt., p. 5). responsibility to protect native species is permanently protected by the The golden paintbrush is not currently ecosystems, fulfill the purposes for mission of all NWRs to manage their protected under any provincial which an individual refuge was lands and waters for the conservation of legislation in British Columbia. founded, and implement strategies to fish, wildlife, and plant resources and However, the golden paintbrush occurs achieve the goals and objectives stated their habitats. in the ecological reserves that include in management plans. For example, National Park Service Organic Act— Trial Island and Alpha Islet, which are William L. Finley NWR (Benton County, One golden paintbrush site currently protected under the British Columbia Oregon) includes extensive habitat for occurs on National Park Service (NPS) Park Act (COSEWIC 2011, in litt., p. 5). the golden paintbrush, including four lands (American Camp, San Juan Island The British Columbia Park Act allows known occupied sites, while a number National Historical Park, Washington). lands identified under the Ecological of additional NWRs in Oregon (Ankeny The NPS Organic Act of 1916, as Reserve Act to be regulated to restrict or NWR, Marion County; Tualatin River amended (39 Stat. 535), states the NPS prohibit any use, development, or NWR, Washington County; and Baskett shall promote and regulate the use of occupation of the land or any use or Slough NWR, Polk County) and the National Park system ‘‘to conserve development of the natural resources in Washington (Dungeness NWR, Clallam the scenery, natural and historic objects, an ecological reserve (Revised Statutes County) each also support at least one and wild life’’ therein, to provide for the of British Columbia 1996, c. 103). This golden paintbrush occupied site. enjoyment of the same in such manner includes particular areas where rare or The Willamette Valley comprehensive and by such means ‘‘as will leave them endangered native plants and animals in conservation plan (CCP) for William L. unimpaired for the enjoyment of future their natural habitat may be preserved. Finley, Ankeny, and Baskett Slough generations’’ (54 U.S.C. 100101(a)). NWRs is a land management plan Further, in title 36 of the Code of State finalized in 2011 with a 15-year term Federal Regulations (CFR) at Washington Natural Heritage Plan— that directs maintenance, protection, § 2.1(a)(1)(i) and (a)(1)(ii), NPS Washington State’s Natural Heritage and restoration of the species and its regulations specifically prohibit Plan identifies priorities for preserving habitat and identifies specific objectives possessing, destroying, injuring, natural diversity in Washington State related to establishment of populations defacing, removing, digging, or (WDNR 2018, entire). The plan aids and monitoring, as well as related disturbing from its natural state living or WDNR in conserving key habitats that habitat maintenance/management dead wildlife, fish, or plants, or parts or are currently imperiled, or are expected (Service 2011, pp. 2–45—2–46, 2–66— products thereof, on lands under NPS to be imperiled in the future. The 2–70). Given the 15-year timeframe of jurisdiction. This prohibition extends to prioritization of conservation efforts CCPs, these protections would remain the golden paintbrush where it exists on provided by this plan is expected to in place until at least 2026, regardless of NPS-managed lands. In addition, the remain in place if we delist the golden the golden paintbrush’s Federal listing General Management Plan for the San paintbrush. The golden paintbrush is status. Juan Island National Historical Park currently identified as a priority 2 Tualatin River NWR finalized a CCP includes the NPS’s goal of restoring a species (species likely to become in 2013, and although it does not have prairie community that support endangered across their range or in conservation actions specific to the functions and values of native habitat, Washington within the foreseeable golden paintbrush identified in the including habitat for native wildlife and future) in the State’s 2018 plan (WDNR plan, it does have maintenance and rare species, such as the golden 2018a, in litt. p. 4), which is a recent management activities for oak savanna paintbrush (NPS 2008, p. 249). change from the species’ priority 1

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designation (species are in danger of action on Oregon land owned or leased likely to co-occur resulting in significant extinction across their range, including by the State, for which the State holds negative consequences for the species. Washington) in 2011 (WDNR 2018b, in a recorded easement, and which results, We anticipate that any negative litt. p. 2). If we delist the golden or might result, in the taking of an consequence of co-occurring threats will paintbrush, WDNR may assign the endangered or threatened plant species, be successfully addressed through the species a priority 3 designation (species requires consultation with Oregon same active management actions that that are vulnerable or declining and Department of Agriculture staff. The have contributed to the ongoing could become threatened without active golden paintbrush is currently State- recovery of the golden paintbrush and management or removal of threats to listed as endangered in Oregon. At this the conservation of regional prairie their existence) in the next iteration of time, no populations of the golden ecosystems that are expected to their plan, which may result in WDNR paintbrush are known to occur on State continue into the future. expending less effort in the continued lands in Oregon. However, should Summary of Biological Status conservation of the golden paintbrush. populations of the golden paintbrush However, we anticipate that WDNR will occur on Oregon State lands in the To assess golden paintbrush viability, continue to monitor the species where future, the removal of Federal we evaluated the three conservation it occurs on their own lands and more protections for the golden paintbrush biology principles of resiliency, broadly as a partner in the post-delisting would not affect State protection of the redundancy, and representation (Shaffer monitoring plan. We also anticipate that species under this statute. and Stein 2000, pp. 306–310). We WDNR will continue to actively manage In summary, conservation measures assessed the current resiliency of golden their golden paintbrush sites, because and existing regulatory mechanisms paintbrush sites (Service 2019, pp. 52– these areas are not only important to the have minimized, and are continuing to 63) by scoring each site’s management long-term conservation of golden address, the previously identified level, site condition, threats addressed, paintbrush, but also to other at-risk threats to the golden paintbrush, site abundance of plants, and site prairie species. including habitat succession of prairie protection, resulting in a high, Washington State Park Regulations and grassland habitats to shrub and moderate, or low condition ranking. and Management—State park forest lands; development of property One-third of sites were determined to regulations, in general, require an for commercial, residential, and have a high condition ranking, one-third evaluation of any activity conducted on agricultural use; recreational picking a moderate condition ranking, and one- a park that has the potential to damage (including associated trampling); and third a low condition ranking (Service park resources, and require mitigation herbivory (on plants and seeds). As 2019, p. 63). as appropriate (Washington indicated above, we anticipate the Golden paintbrush sites are well- Administrative Code 2016, entire). majority of these mechanisms will distributed across the species’ historical Wildlife, plants, all park buildings, remain in place regardless of the range and provide representation across signs, tables, and other structures are species’ Federal listing status. the four distinct geographic areas within protected; removal or damage of any that range (British Columbia, North Cumulative Impacts kind is prohibited (Washington State Puget Sound, South Puget Sound, and Parks and Recreation Commission 2019, When multiple stressors co-occur, one the Willamette Valley). Multiple sites or in litt., p. 2). One golden paintbrush site may exacerbate the effects of the other, populations exist within each of these currently exists on Fort Casey Historical leading to effects not accounted for geographic areas, providing a relatively State Park. One of the objectives for when each stressor is analyzed secure level of redundancy across the natural resources on Fort Casey individually. The full impact of these historical range, with the lowest level of Historical State Park under the Central synergistic effects may be observed redundancy within British Columbia. Whidbey State Parks Management Plan within a short period of time, or may The resiliency of the golden paintbrush is to protect and participate in the take many years before it is noticeable. is more variable across the historical recovery of the golden paintbrush, For example, high levels of predation range given differences in site or including protecting native plant (herbivory) on the golden paintbrush by population abundance, level of communities, managing vegetative deer could cause large temporary losses management at a site, and site succession, and removing weeds in seed production in a population, but condition, but overall most sites appear through integrated pest management are not generally considered to be a to be in moderate and high condition. (Washington State Park and Recreation significant threat to long-term viability; The best scientific and commercial data Commission 2008, p. 15). The plan populations that are relatively large and available indicate that the golden further states that areas where the well-distributed should be able to paintbrush is composed of multiple golden paintbrush occurs will be withstand such naturally occurring populations, primarily in moderate to classified as ‘‘heritage affording a high events. However, the relative impact of high condition (Service 2019, p. 63), degree of protection,’’ and the Nass predation (herbivory) by deer may be which are sufficiently resilient, well- Natural Area Preserve (also known as intensified when it occurs in distributed (redundancy and Admiralty Inlet Natural Area Preserve) conjunction with other factors that may representation), largely protected, and is included in the long-term park lessen the resiliency of golden managed such that they will be boundary to also assure continued paintbrush populations, such as relatively robust or resilient to any preservation of the golden paintbrush in prolonged woody species encroachment potential cumulative effects to which this area (Washington State Park and (prairie succession); extensive they may be exposed. Recreation Commission 2008, p. 26). nonnative, invasive plant infestations; Oregon Revised Statutes (ORS), or possible increased plant mortality Determination of Golden Paintbrush Chapter 564—Oregon Revised Statutes, resulting from the effects of climate Status chapter 564, ‘‘Wildflowers; Threatened change (i.e., prolonged drought). Section 4 of the Act (16 U.S.C. 1533) or Endangered Plants,’’ requires State Although the types, magnitude, or and its implementing regulations (50 agencies to protect State-listed plant extent of potential cumulative impacts CFR part 424) set forth the procedures species found on their lands (Oregon are difficult to predict, we are not aware for determining whether a species meets Revised Statutes 2017, entire). Any land of any combination of factors that is the definition of ‘‘endangered species’’

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or ‘‘threatened species.’’ The Act defines appears to tolerate the effects of climate development or land use; (4) an endangered species as a species that change (Factor E), and existing recreational picking (including is ‘‘in danger of extinction throughout information indicates that this condition associated trampling); (5) herbivory (on all or a significant portion of its range,’’ is unlikely to change in the future. The plants and seeds); (6) hybridization with and a threatened species as a species existing regulatory mechanisms (Factor harsh paintbrush; and (7) the effects of that is ‘‘likely to become an endangered D) are sufficient to ensure protection of climate change, including cumulative species within the foreseeable future the species at the reduced levels of effects. Although the impact of throughout all or a significant portion of threat that remain. hybridization with the harsh paintbrush its range.’’ For a more detailed Thus, after assessing the best available is most evident in the south Puget discussion on the factors considered information, we determine that golden Sound region of the species’ range, this when determining whether a species paintbrush is not in danger of potential stressor is being addressed meets the definition of an endangered extinction, or likely to become so in the throughout the species’ range with the species or a threatened species and our foreseeable future, throughout all of its hybridization strategy and guidance. We analysis on how we determine the range. found no concentration of threats in any foreseeable future in making these Status Throughout a Significant Portion portion of the golden paintbrush’s range decisions, please see Regulatory and of Its Range at a biologically meaningful scale. Analytical Framework. Therefore, no portion of the species’ Under the Act and our implementing range can provide a basis for Status Throughout All of Its Range regulations, a species may warrant determining that the species is in danger After evaluating threats to the species listing if it is in danger of extinction or of extinction now, or likely to become and assessing the cumulative effect of likely to become so in the foreseeable so in the foreseeable future, in a the threats under the section 4(a)(1) future throughout all or a significant significant portion of its range, and we factors, we find, based on the best portion of its range. Having determined find the species is not in danger of available information, and as described that the golden paintbrush is not in extinction now, or likely to become so in our analysis above, stressors danger of extinction or likely to become in the foreseeable future, in any identified at the time of listing and so in the foreseeable future throughout significant portion of its range. This is several additional potential stressors all of its range, we now consider consistent with the courts’ holdings in analyzed for this assessment do not whether it may be in danger of Desert Survivors v. Department of the affect golden paintbrush to a degree that extinction or likely to become so in the Interior, No. 16–cv–01165–JCS, 2018 causes it to be in danger of extinction foreseeable future in a significant WL 4053447 (N.D. Cal. Aug. 24, 2018), either now or in the foreseeable future. portion of its range—that is, whether and Center for Biological Diversity v. Development of property for there is any portion of the species’ range Jewell, 248 F. Supp. 3d, 946, 959 (D. commercial, residential, and for which both (1) the portion is Ariz. 2017). agricultural use (Factor A), has not significant; and (2) the species is in occurred to the extent anticipated at the danger of extinction now or likely to Determination of Status time of listing and is adequately become so in the foreseeable future in Our review of the best available managed; existing information indicates that portion. Depending on the case, it scientific and commercial information this condition is unlikely to change in might be more efficient for us to address indicates that the golden paintbrush the future. Potential constriction of the ‘‘significance’’ question or the does not meet the definition of an habitat for expansion and refugia (Factor ‘‘status’’ question first. We can choose to endangered species or a threatened A) also has not occurred to the extent address either question first. Regardless species in accordance with sections 3(6) anticipated at the time of listing, and of which question we address first, if we and 3(20) of the Act. Therefore, we existing information indicates this reach a negative answer with respect to propose to remove the golden condition is unlikely to change in the the first question that we address, we do paintbrush from the List. future. Habitat modification through not need to evaluate the other question succession of prairie and grassland for that portion of the species’ range. Effects of the Rule habitats to shrub and forest lands In undertaking this analysis for the This proposal, if made final, would (Factor A) is adequately managed, and golden paintbrush, we choose to revise 50 CFR 17.12(h) by removing the existing information indicates this evaluate the status question first—we golden paintbrush from the List. The condition is unlikely to change in the consider information pertaining to the prohibitions and conservation measures future. Recreational picking and geographic distribution of both the provided by the Act, particularly associated trampling (Factor B) has not species and the threats that the species through sections 7 and 9, would no occurred to the extent anticipated at the faces to identify any portions of the longer apply to the golden paintbrush. time of listing; the species appears to range where the species is endangered Federal agencies would no longer be tolerate current levels of this activity, or threatened. required to consult with the Service and existing information indicates that For golden paintbrush, we considered under section 7 of the Act in the event this condition is unlikely to change in whether the threats are geographically that activities they authorize, fund, or the future. Herbivory on plants and concentrated in any portion of the carry out may affect the golden seeds (Factor C) has not occurred to the species’ range at a biologically paintbrush. There is no critical habitat extent anticipated at the time of listing; meaningful scale. We examined the designated for this species, so there the species appears to tolerate current following threats: (1) Habitat succession would be no effect to 50 CFR 17.96. levels of herbivory, and existing of prairie and grassland habitats to information indicates that this condition shrub and forest due to fire suppression, Post-Delisting Monitoring is unlikely to change in the future. interspecific competition, and invasive Section 4(g)(1) of the Act requires us Hybridization with the harsh paintbrush species; (2) development of property for to implement a system to monitor (Factor E) is adequately managed, and commercial, residential, and effectively, for not less than 5 years, all existing information indicates this agricultural use; (3) low potential for species that have been recovered and condition is unlikely to change in the expansion and refugia due to delisted (50 CFR 17.11, 17.12). The future. Finally, golden paintbrush constriction of habitat by surrounding purpose of this post-delisting

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monitoring is to verify that a species (2) Use the active voice to address as proposed. There are currently no remains secure from the risk of readers directly; golden paintbrush sites on Tribal lands, extinction after it has been removed (3) Use clear language rather than although some sites may lie within the from the protections of the Act. The jargon; usual and accustomed places for Tribal monitoring is designed to detect the (4) Be divided into short sections and collection and gathering of resources. failure of any delisted species to sustain sentences; and We welcome input from potentially (5) Use lists and tables wherever itself without the protective measures affected Tribes on our proposal. provided by the Act. If, at any time possible. during the monitoring period, data If you feel that we have not met these References Cited indicate that the protective status under requirements, send us comments by one A complete list of all references cited the Act should be reinstated, we can of the methods listed in ADDRESSES. To initiate listing procedures, including, if better help us revise the rule, your in this proposed rule is available on the appropriate, emergency listing under comments should be as specific as internet at http://www.regulations.gov at section 4(b)(7) of the Act. Section 4(g) of possible. For example, you should tell Docket No. FWS–R1–ES–2020–0060, or the Act explicitly requires us to us the names of the sections or upon request from the State Supervisor, cooperate with the States in paragraphs that are unclearly written, Washington Fish and Wildlife Office development and implementation of which sections or sentences are too (see FOR FURTHER INFORMATION CONTACT). long, the sections where you feel lists or post-delisting monitoring programs, but Authors we remain responsible for compliance tables would be useful, etc. with section 4(g) and, therefore, must National Environmental Policy Act The primary authors of this proposed remain actively engaged in all phases of It is our position that, outside the rule are the staff of the Washington Fish post-delisting monitoring. We also seek jurisdiction of the U.S. Court of Appeals and Wildlife Office. active participation of other entities that for the Tenth Circuit, we do not need to are expected to assume responsibilities Signing Authority prepare environmental analyses for the species’ conservation post- pursuant to the National Environmental The Director, U.S. Fish and Wildlife delisting. We propose to delist the golden Policy Act of 1969 (NEPA; 42 U.S.C. Service, approved this document and paintbrush in light of new information 4321 et seq.) in connection with authorized the undersigned to sign and available and recovery actions taken. regulations adopted pursuant to section submit the document to the Office of the We prepared a draft post-delisting 4(a) of the Act. We published a notice Federal Register for publication monitoring plan that describes the outlining our reasons for this electronically as an official document of methods proposed for monitoring the determination in the Federal Register the U.S. Fish and Wildlife Service. species, if it is removed from the List. on October 25, 1983 (48 FR 49244). This Martha Williams, Principal Deputy Monitoring of flowering plants at each position was upheld by the U.S. Court Director Exercising the Delegated golden paintbrush site extant in 2018 of Appeals for the Ninth Circuit Authority of the Director, U.S. Fish and would take place every other year, over (Douglas County v. Babbitt, 48 F.3d Wildlife Service, approved this a minimum of 5 years after final 1495 (9th Cir. 1995), cert. denied 516 document on June 21, 2021, for U.S. 1042 (1996)). delisting. Proposed monitoring efforts publication. would be slightly modified from prior Government-to-Government protocols, by only requiring a visual Relationship With Tribes List of Subjects in 50 CFR Part 17 estimation of population size when In accordance with the President’s Endangered and threatened species, clearly numbering >1,000 but <10,000, ≥ memorandum of April 29, 1994 Exports, Imports, Reporting and or 10,000 flowering individuals, as (Government-to-Government Relations recordkeeping requirements, opposed to an actual count or calculated with Native American Tribal Transportation. estimate of flowering plants. This Governments; 59 FR 22951), Executive modification should streamline Order 13175 (Consultation and Proposed Regulation Promulgation monitoring efforts. It is our intent to Coordination with Indian Tribal work with our partners to maintain the Accordingly, we propose to amend Governments), and the Department of part 17, subchapter B of chapter I, title recovered status of golden paintbrush. the Interior’s manual at 512 DM 2, we 50 of the Code of Federal Regulations, With publication of this proposed rule, acknowledge our responsibility to as set forth below: we seek public and peer review communicate meaningfully with comments on the draft post-delisting recognized Federal Tribes on a monitoring plan, including its objectives PART 17—ENDANGERED AND government-to-government basis. In THREATENED WILDLIFE AND PLANTS and methods (see Public Comments, accordance with Secretarial Order 3206 above). The draft post-delisting of June 5, 1997 (American Indian Tribal ■ 1. The authority citation for part 17 monitoring plan can be found at http:// Rights, Federal-Tribal Trust www.regulations.gov under Docket No. Responsibilities, and the Endangered continues to read as follows: FWS–R1–ES–2020–0060. Species Act), we acknowledge our Authority: 16 U.S.C. 1361–1407; 1531– Required Determinations responsibilities to work directly with 1544; and 4201–4245, unless otherwise Tribes in developing programs for noted. Clarity of the Rule healthy ecosystems, to acknowledge that We are required by Executive Orders tribal lands are not subject to the same § 17.12 [Amended] 12866 and 12988 and by the controls as Federal public lands, to ■ 2. Amend § 17.12(h) by removing the Presidential Memorandum of June 1, remain sensitive to Native American entry for ‘‘Castilleja levisecta’’ under 1998, to write all rules in plain culture, and to make information language. This means that each rule we available to Tribes. publish must: We do not believe that any Tribes (1) Be logically organized; would be affected if we adopt this rule

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FLOWERING PLANTS from the List of Administrator, NMFS Pacific Islands 2010, but has declined and remained Endangered and Threatened Plants. Region (PIR), 1845 Wasp Blvd. Bldg. below 20 active vessels annually. In 176, Honolulu, HI 96818. response, the Council developed Anissa Craghead, Instructions: NMFS may not consider Amendment 9 to reduce the Acting Regulations and Policy Chief, Division comments sent by any other method, to programmatic barriers that may be of Policy, Economics, Risk Management, and Analytics, Joint Administrative Operations, any other address or individual, or limiting small vessel participation. The U.S. Fish and Wildlife Service. received after the end of the comment purpose of Amendment 9 is to reduce [FR Doc. 2021–13882 Filed 6–29–21; 8:45 am] period. All comments received are a the complexity of the limited entry part of the public record, and NMFS program and provide for sustained BILLING CODE 4333–15–P will generally post them for public community participation, especially for viewing on www.regulations.gov small vessels. Amendment 9 could DEPARTMENT OF COMMERCE without change. All personal identifying allow new entrants to obtain a small information (e.g., name, address, etc.), vessel permit by removing requirements National Oceanic and Atmospheric confidential business information, or that previously would have made some Administration otherwise sensitive information new entrants ineligible. If approved, submitted voluntarily by the sender will Amendment 9 would do the following: 50 CFR Part 665 be publicly accessible. NMFS will (a) Replace the four vessel classes RIN 0648–BH65 accept anonymous comments (enter with two, where Class A and B vessels ‘‘N/A’’ in the required fields if you wish would be classified as ‘‘small’’ vessels, Pacific Island Fisheries; Amendment 9 to remain anonymous). and Class C and D vessels would be to the Fishery Ecosystem Plan for Amendment 9 includes a draft classified as ‘‘large’’ vessels; Pelagic Fisheries of the Western environmental assessment (EA) that (b) Restrict permit holders to U.S. Pacific; Modifications to the American analyzes the potential impacts of the citizens and nationals, and eliminate the Samoa Longline Fishery Limited Entry proposed measures and alternatives requirement to have documented Program considered. Copies of Amendment 9, including the draft EA and a Regulatory history of participation to be eligible for AGENCY: National Marine Fisheries Impact Review (RIR), and other a permit, but maintain the priority Service (NMFS), National Oceanic and supporting documents, are available at ranking system based on earliest Atmospheric Administration (NOAA), https://www.regulations.gov, or from the documented history of fishing Commerce. Council, 1164 Bishop St., Suite 1400, participation in vessel class size, if there ACTION: Notification of availability of a Honolulu, HI 96813, tel 808–522–8220, is competition between two or more fishery ecosystem plan amendment; www.wpcouncil.org. applicants for a permit; request for comments. FOR FURTHER INFORMATION CONTACT: Kate (c) Require that permits can only be SUMMARY: NMFS announces that the Taylor, Sustainable Fisheries, NMFS transferred among U.S. citizens or Western Pacific Fishery Management PIR, 808–725–5182. nationals, and eliminate the Council (Council) proposes to amend SUPPLEMENTARY INFORMATION: NMFS and requirement for documented the Fishery Ecosystem Plan for Pelagic the Council manage the American participation in the fishery to receive a Fisheries of the Western Pacific (FEP). If Samoa longline fishery under the FEP transferred permit; approved, Amendment 9 would reduce and implementing regulations. The (d) Reduce the small vessel minimum regulatory barriers that may be limiting fishery targets primarily albacore, which harvest requirement to 500 lb (227 kg) small vessel participation in the are sold frozen to the fish processing of pelagic management unit species American Samoa longline fishery. industry in Pago Pago, American Samoa. within a 3-year period, but maintain the Specifically, Amendment 9 would During the 1980s and 1990s, the existing 5,000 lb (2,268 kg) harvest consolidate vessel class sizes, modify longline fleet was mainly comprised of requirement for large vessels; permit eligibility requirements, and alia, locally-built catamarans between (e) Require that the entire minimum reduce the minimum harvest 24 and 38 ft in length. In the early harvest amounts for the respective requirements for small vessels. The 2000s, the longline fishery expanded vessel classes are to be landed in ≥ Council recommended Amendment 9 to rapidly with the influx of large ( 50 ft) American Samoa within a three-year provide for sustained community and conventional vessels similar to the type permit period, but that the minimum indigenous American Samoan used in the Hawaii-based longline harvests not be required to be caught participation in the small vessel fishery, including some vessels from within the U.S. EEZ around American longline fishery. Hawaii. Samoa; DATES: NMFS must receive comments To manage capacity in the then- on Amendment 9 by August 30, 2021. rapidly developing fishery, the Council (f) Specify a fixed three-year permit period that is the same as the three-year ADDRESSES: You may submit comments in 2001 (through Amendment 11 to the period to make a minimum harvest on this document, identified by NOAA– Fishery Management Plan for Pelagic requirement; and NMFS–2018–0023, by either of the Fisheries of the Western Pacific, following methods: superseded by the FEP) established a (g) Clarify that the minimum harvest • Electronic Submission: Submit all limited entry program with vessel size period would not restart in the event of electronic comments via the Federal e- classes and criteria for participation. In a permit transfer. If the minimum Rulemaking Portal. Go to http:// 2005, NMFS implemented the limited harvest amount has not been caught at www.regulations.gov and enter NOAA– entry program and issued 60 permits to the time of transfer, the new permit NMFS–2018–0023 in the Search box, qualified candidates among four vessel holder would be required to meet the click the ‘‘Comment’’ icon, complete the size classes. harvest requirement based on the required fields, and enter or attach your Only a few small vessels have been following formula: The product of comments. active in the fishery since 2007. percentage of time left within the three- • Mail: Send written comments to Participation by large vessels was year permit period and the minimum Michael D. Tosatto, Regional somewhat stable from 2001 through harvest amount.

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NMFS invites public comments on approve, partially approve, or Authority: 16 U.S.C. 1801, et seq. the proposed action and specifically disapprove the amendment. Concurrent Dated: June 24, 2021. invites comments that address the with NMFS’s review of the amendment Jennifer M. Wallace, impact of this proposed action on under the Magnuson-Stevens Act cultural fishing in American Samoa. Acting Director, Office of Sustainable procedures, NMFS may publish for Fisheries, National Marine Fisheries Service. NMFS must receive comments on public comment a proposed rule in the [FR Doc. 2021–13970 Filed 6–29–21; 8:45 am] Amendment 9, including a draft EA and Federal Register to implement the draft RIR, by August 30, 2021 for measures described in Amendment 9. BILLING CODE 3510–22–P consideration in the decision to

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Notices Federal Register Vol. 86, No. 123

Wednesday, June 30, 2021

This section of the FEDERAL REGISTER displays a currently valid OMB control DEPARTMENT OF AGRICULTURE contains documents other than rules or number. proposed rules that are applicable to the Animal and Plant Health Inspection public. Notices of hearings and investigations, Food and Nutrition Service Service committee meetings, agency decisions and rulings, delegations of authority, filing of Title: SNAP-Ed Toolkit Submission petitions and applications and agency Form (FNS–886) and Scoring Tool [Docket No. APHIS–2021–0027] statements of organization and functions are (FNS–885). examples of documents appearing in this Okanagan Specialty Fruits Inc.; section. OMB Control Number: 0584–0639. Availability of a Request, a Draft Plant Summary of Collection: The Food and Pest Risk Similarity Assessment, and Nutrition Act of 2008, as amended (The Preliminary Determination for an DEPARTMENT OF AGRICULTURE Act) § 28(c)(3)(A) states that State Extension of Determination of agencies ‘‘may use funds provided Nonregulated Status for Non-Browning Submission for OMB Review; under this section for any evidence- Apple Comment Request based allowable use of funds’’ including AGENCY: Animal and Plant Health ‘‘(i) individual and group-based The Department of Agriculture has Inspection Service, USDA. nutrition education, health promotion, submitted the following information ACTION: Notice. and intervention strategies’’. 7 CFR collection requirement(s) to OMB for 272.2(2)(d) also states ‘‘SNAP-Ed review and clearance under the SUMMARY: We are advising the public Paperwork Reduction Act of 1995, activities must include evidence-based that the Animal and Plant Health Public Law 104–13. Comments are activities using one or more of these Inspection Service has received a requested regarding; whether the approaches: individual or group-based request from Okanagan Specialty Fruits collection of information is necessary nutrition education, health promotion, Inc. (OSF) to extend our determination for the proper performance of the and intervention strategies; of nonregulated status of GD743 apple functions of the agency, including comprehensive, multi-level and GS784 apple to PG451 apple which whether the information will have interventions at multiple has been developed using genetic practical utility; the accuracy of the complementary organizational and engineering to resist browning. We are agency’s estimate of burden including institutional levels; community and making the OSF extension request, the the validity of the methodology and public health approaches to improve preliminary determination, and the draft assumptions used; ways to enhance the nutrition’’. The Intervention Submission plant pest risk similarity assessment quality, utility and clarity of the Form (FNS 886) and Scoring Tool (FNS available for public comment. information to be collected; and ways to 885) allows for interventions to be DATES: We will consider all comments minimize the burden of the collection of assessed to determine if they are both that we receive on or before July 30, information on those who are to evidence-based and use one of the 2021. approaches described. respond, including through the use of ADDRESSES: You may submit comments appropriate automated, electronic, Need and Use of the Information: The by either of the following methods: mechanical, or other technological Intervention Submission Form will be • Federal eRulemaking Portal: Go to collection techniques or other forms of used by intervention developers http://www.regulations.gov and enter information technology. (submitters) to provide information APHIS–2021–0027 in the Search field. Comments regarding this information about the intervention they are Select the Documents tab, then select collection received by July 30, 2021 will submitting for inclusion in the Toolkit. the Comment button in the list of be considered. Written comments and Information requested includes documents. recommendations for the proposed intervention materials, how they have • Postal Mail/Commercial Delivery: information collection should be been and will be used, and the evidence Send your comment to Docket No. submitted within 30 days of the base which illustrates their APHIS–2021–0027, Regulatory Analysis publication of this notice on the effectiveness. and Development, PPD, APHIS, Station following website www.reginfo.gov/ Description of Respondents: (130) 3A–03.8, 4700 River Road, Unit 118, public/do/PRAMain. Find this Business-for-profit; (16) Not-for-profit Riverdale, MD 20737–1238. particular information collection by institutions; (44) State, Local or Tribal The OSF extension request, the selecting ‘‘Currently under 30-day Government. preliminary determination, and the draft Review—Open for Public Comments’’ or Number of Respondents: 190. plant pest risk similarity assessment, by using the search function. and any comments we receive on this An agency may not conduct or Frequency of Responses: Reporting: docket may be viewed at sponsor a collection of information Once, On occasion. www.regulations.gov or in our reading unless the collection of information Total Burden Hours: 550. room, which is located in Room 1620 of displays a currently valid OMB control the USDA South Building, 14th Street number and the agency informs Ruth Brown, and Independence Avenue SW, potential persons who are to respond to Departmental Information Collection Washington, DC. Normal reading room the collection of information that such Clearance Officer. hours are 8 a.m. to 4:30 p.m., Monday persons are not required to respond to [FR Doc. 2021–13909 Filed 6–29–21; 8:45 am] through Friday, except holidays. To be the collection of information unless it BILLING CODE 3410–30–P sure someone is there to help you,

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please call (202) 799–7039 before causes browning. GD743 and GS784 received that would warrant APHIS coming. apple lines were developed using the altering its preliminary regulatory Supporting documents for this same plasmid vector and the same determination, our preliminary petition are also available on the APHIS Agrobacterium-mediated transformation regulatory determination will become website at https://www.aphis.usda.gov/ method. final and effective upon notification of aphis/ourfocus/biotechnology/permits- Based on the information in the the public through an announcement on notifications-petitions/petitions/ request, we have concluded that PG451 our website at https:// petition-status. apple is similar to GD743 and GS784 www.aphis.usda.gov/aphis/ourfocus/ FOR FURTHER INFORMATION CONTACT: Ms. apple lines. PG451 apple is currently biotechnology/permits-notifications- Cindy Eck, Biotechnology Regulatory regulated under 7 CFR part 340. petitions/petitions/petition-status. Services, APHIS, 4700 River Road, Unit As part of our decision-making APHIS will also furnish a response to 147, Riverdale, MD 20737–1236; (301) process regarding the regulatory status the petitioner regarding our final 851–3892; email: cynthia.a.eck@ of an organism developed using genetic regulatory determination. No further usda.gov. engineering, APHIS prepared a draft Federal Register notice will be plant pest risk similarity assessment SUPPLEMENTARY INFORMATION: Under the published announcing the final (PPRSA) to compare PG451 apple to the authority of the plant pest provisions of regulatory determination of PG451 antecedents. Based on the similarity of the Plant Protection Act (7 U.S.C. 7701 apple. PG451 apple to the antecedents GD743 et seq.), the regulations in 7 CFR part Authority: 7 U.S.C. 7701–7772 and 7781– and GS784 apple lines as described in 340, ‘‘Movement of Organisms Modified 7786; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and the PPRSA, APHIS concludes that or Produced Through Genetic 371.3. PG451 apple is unlikely to pose a Engineering,’’ regulate, among other Done in Washington, DC, this 24th day of greater plant pest risk than the June 2021. things, the importation, interstate unmodified organism from which it was Michael Watson, movement, or release into the derived and should no longer be environment of organisms modified or regulated under 7 CFR part 340. Acting Administrator, Animal and Plant produced through genetic engineering APHIS has analyzed information Health Inspection Service. that are plant pests or pose a plausible submitted by OSF, references provided [FR Doc. 2021–13901 Filed 6–29–21; 8:45 am] plant pest risk. in the extension request, peer-reviewed BILLING CODE 3410–34–P The extension for nonregulated status publications, and supporting described in this notice is being documentation prepared for the evaluated under the version of the antecedent organism. Based on APHIS’ DEPARTMENT OF AGRICULTURE regulations effective at the time that it analysis of this information and the was received. The Animal and Plant Animal and Plant Health Inspection similarity of PG451 apple to the Service Health Inspection Service (APHIS) antecedents GD743 and GS784 apple issued a final rule, published in the lines, APHIS has determined that PG451 [Docket No. APHIS–2020–0021] Federal Register on May 18, 2020 (85 apple is unlikely to pose a plant pest FR 29790–29838, Docket No. APHIS– risk. We have therefore reached a Bayer; Notice of Intent To Prepare an 1 2018–0034), revising 7 CFR part 340; preliminary decision to approve the Environmental Impact Statement for however, the final rule is being request to extend the determination of Determination of Nonregulated Status implemented in phases. This extension nonregulated status for PG451 apple for Maize Developed Using Genetic of a determination of nonregulated line, whereby PG451 apple would no Engineering for Dicamba, Glufosinate, Quizalofop, and 2,4- status is being evaluated in accordance longer be subject to our regulations Dichlorophenoxyacetic Acid with the regulations at 7 CFR 340.6 governing organisms developed using Resistance, With Tissue-Specific (2020) as it was received by APHIS on genetic engineering. July 31, 2020. We are therefore publishing this Glyphosate Resistance Facilitating the 2 On February 18, 2015, APHIS notice to make available our evaluation Production of Hybrid Maize Seed; announced its determination of and inform the public of our Reopening of Comment Period nonregulated status of Okanagan preliminary decision to extend the AGENCY: Animal and Plant Health Specialty Fruits Inc.’s (OSF) GD743 and determination of nonregulated status of Inspection Service, USDA. GS784 apple lines which were PG451 apple. ACTION: Notice of intent to prepare an developed using genetic engineering to APHIS will accept written comments resist browning. OSF has submitted a environmental impact statement; on the request for extension, PPRSA, reopening of comment period. request to extend a determination of and our preliminary determination for nonregulated status of GD743 and PG451 apple for 30 days. These SUMMARY: We are reopening the GS784 apple lines to PG451 apple documents are available for public comment period for our notice of intent (APHIS Petition Number 20–213–01ext) review as indicated under ADDRESSES to prepare an environmental impact which has been developed using genetic and FOR FURTHER INFORMATION CONTACT statement regarding a request from engineering to resist browning. above. Copies of these documents may Bayer seeking a determination of As described in the extension request, also be obtained by contacting the nonregulated status for maize developed PG451 apple was developed through person listed under FOR FURTHER using genetic engineering for dicamba, Agrobacterium-mediated transformation INFORMATION CONTACT. glufosinate, quizalofop, and 2,4- of apple leaf tissue using the binary After the comment period closes, dichlorophenoxyacetic acid resistance plasmid vector pGEN–03 to suppress APHIS will review all written comments with tissue-specific glyphosate genes for polyphenol oxidase, which received during the comment period resistance facilitating the production of and any other relevant information. All hybrid maize seed. This action will 1 To view the final rule, go to comments will be available for public allow interested persons additional time www.regulations.gov and enter APHIS–2018–0034 to prepare and submit comments. in the Search field. review. After reviewing and evaluating 2 To view the notice, go to www.regulations.gov the comments, if APHIS determines that DATES: The comment period for the and enter APHIS–2012–0025 in the Search field. no substantive information has been notice of intent published on April 28,

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2021 (86 FR 22384) is reopened. We will Done in Washington, DC, this 24th day of Ubrey (Human Resources, 202–772– consider all comments that we receive June 2021. 4836) or Constance Goodwin (Office of on or before July 30, 2021. Michael Watson, Civil Rights, 202–379–6431). Acting Administrator, Animal and Plant FOR FURTHER INFORMATION CONTACT: ADDRESSES: You may submit comments Health Inspection Service. by either of the following methods: William Janis at the address stated [FR Doc. 2021–13904 Filed 6–29–21; 8:45 am] above, by telephone at (202) 720–2194 • Federal eRulemaking Portal: Go to BILLING CODE 3410–34–P or by email at: [email protected]. http://www.regulations.gov and enter SUPPLEMENTARY INFORMATION: Title: APHIS–2020–0021 in the Search field. Sugar Imported for Export as Refined Select the Documents tab, then select DEPARTMENT OF AGRICULTURE Sugar or as Sugar-Containing Products the Comment button in the list of or used in the Production of Certain documents. Foreign Agricultural Service Polyhydric Alcohols. • Postal Mail/Commercial Delivery: Notice of Request for a Revision of a OMB Number: 0551–0015. Send your comment to Docket No. Currently Approved Information Expiration Date of Approval: August APHIS–2020–0021, Regulatory Analysis Collection 31, 2021. and Development, PPD, APHIS, Station Type of Request: Revision of a 3A–03.8, 4700 River Road, Unit 118, AGENCY: Foreign Agricultural Service, currently approved information Riverdale, MD 20737–1238. Agriculture (USDA). collection. The petition and any comments we ACTION: Notice and request for Abstract: The primary objective of the receive on this docket may be viewed at comments. Sugar Import Licensing Program is to www.regulations.gov or in our reading permit entry of raw cane sugar, SUMMARY: In accordance with the room, which is located in room 1620 of unrestricted by the quantitative limit Paperwork Reduction Act of 1995, this established by the sugar tariff-rate quota, the USDA South Building, 14th Street notice announces that the Foreign and Independence Avenue SW, for re-export in refined form or in sugar Agricultural Service (FAS) intends to containing products or for production of Washington, DC. Normal reading room request a revision of a currently hours are 8 a.m. to 4:30 p.m., Monday certain polyhydric alcohols. As many as approved information collection for 250 licensees are currently eligible to through Friday, except holidays. To be Sugar Import Licensing Programs. sure someone is there to help you, participate in these programs. please call (202) 799–7039 before DATES: Comments should be received on Estimate of Burden: The public coming. or before August 30, 2021 to be assured reporting burden for each respondent of consideration. resulting from information collection FOR FURTHER INFORMATION CONTACT: Ms. ADDRESSES: FAS invites interested under the USDA Sugar Import Licensing Cindy Eck, Biotechnology Regulatory persons to submit comments on this Program varies in direct relation to the Services, APHIS, 4700 River Road, Unit notice by any of the following methods: number and type of agreements entered 147, Riverdale, MD 20737–1236; phone b Federal eRulemaking Portal: This into by such respondent. The estimated (301)851–3892; email: cynthia.a.eck@ website provides the ability to type average reporting burden for the USDA usda.gov. short comments directly into the Sugar Import Licensing Program is 0.26 comment field or attach a file for hours per response. Under 7 CFR part SUPPLEMENTARY INFORMATION: On April lengthier comments. Go to https:// 1530, the information collected is used 28, 2021, we published in the Federal www.regulations.gov. Follow the on-line by the licensing authority to manage, Register (86 FR 22384–22386, Docket instructions at the site for submitting plan, evaluate, and account for program 1 No. APHIS–2020–0021) a notice of comments. activities. The reports and records are intent to prepare an environmental b Mail, hand delivery, or courier: required to ensure the proper operations impact statement regarding a request William Janis, International Economist, of these programs. from Bayer seeking a determination of Multilateral Affairs Division, Trade Respondents: Sugar refiners, nonregulated status for maize developed Policy and Geographic Affairs, Foreign manufacturers of sugar containing using genetic engineering for dicamba, Agricultural Service, U.S. Department of products, and producers of polyhydric glufosinate, quizalofop, and 2,4- Agriculture, Room 5550, Stop 1070, alcohol. dichlorophenoxyacetic acid resistance 1400 Independence Ave. SW, Estimated Number of Respondents: with tissue-specific glyphosate Washington, DC 20250–1070. 146. resistance facilitating the production of b Email: [email protected]. Estimated Number of Responses per hybrid maize seed. Include OMB Number 0551–0015 in the Respondent: 10. Comments on the notice of intent subject line of the message. Estimated Total Annual Burden on were required to be received on or All comments submitted must include Respondents: 388 hours. before May 28, 2021. We are reopening the agency name and OMB Number Request for Comments: The public is the comment period on Docket No. below. Comments received in response invited to submit comments and APHIS–2020–0021 for an additional 30 to this docket will be made available for suggestions on all aspects of this days from the date of publication of this public inspection and posted without information collection to help us to: (1) notice. This action will allow interested change, including any personal Evaluate whether the collection of persons additional time to prepare and information, online at http:// information is necessary for the proper submit comments. We will also consider www.regulations.gov and at the mail performance of FAS’s functions, all comments received between May 29, address listed above between 8:00 a.m. including whether the information will 2021 (the day after the close of the and 4:30 p.m., Monday through Friday, have practical utility; (2) Evaluate the original comment period) and the date except holidays. accuracy of FAS’s estimate of burden of this notice. Persons with disabilities who require including the validity of the an alternative means for communication methodology and assumptions used; (3) 1 To view the notice, go to www.regulations.gov. of information (e.g., Braille, large print, Enhance the quality, utility and clarity Enter APHIS–2020–0021 in the Search field. audiotape, etc.) should contact Angela of the information to be collected; and

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(4) Minimize the burden of the Service, 1400 Independence Avenue will be denied permission to ride along collection of information on those who SW, Mail Stop 1140, Washington, DC with Forest Service law enforcement are to respond, including through the 20250–1140. personnel. use of appropriate automated, • Hand Delivery/Courier: Director of Estimate of Annual Burden: electronic, mechanical, or other Law Enforcement and Investigations, FS–5300–33: 4 minutes technological collection techniques or USDA Forest Service, 1400 FS–5300–34: 4 minutes other forms of information technology. Independence Avenue SW, Mail Stop Total: 8 minutes Copies of this information collection 1140, Washington, DC 20250–1140. Type of Respondents: Citizens who • can be obtained from Ronald Croushorn, Facsimile: 703–605–5114. want to learn about and observe Forest the Agency Information Collection The public may inspect comments Service Law Enforcement and Coordinator, at (202) 720–3038 or e– received at USDA Forest Service Investigation (LEI) tasks and activities. mail at [email protected]. Washington Office, Yates Building, 201 Estimated Annual Number of All comments received in response to 14th Street SW, Washington, DC; during Respondents: 101. this notice, including names and normal business hours. Visitors must Estimated Annual Number of addresses when provided, will be a call ahead to 703–605–4690 to facilitate Responses per Respondent: 1. matter of public record. Comments will entry to the building. Estimated Total Annual Burden on be summarized and included in the FOR FURTHER INFORMATION CONTACT: Respondents: 13 hours. submission for Office of Management Curtis Davis, Assistant Director Law Comment is invited on: (1) Whether and Budget approval. Enforcement and Investigations, 912– this collection of information is E-Government Act Compliance 554–4268. Individuals who use necessary for the stated purposes and telecommunication devices for the deaf the proper performance of the functions FAS is committed to complying with (TDD) may call the Federal Information of the Agency, including whether the the E-Government Act of 2002 to Relay Service (FIRS) at 1–800–877–8339 information will have practical or promote the use of the internet and twenty-four hours a day, every day of scientific utility; (2) the accuracy of the other information technologies to the year, including holidays. Agency’s estimate of the burden of the provide increased opportunities for SUPPLEMENTARY INFORMATION: collection of information, including the citizen access to Government Title: Forest Service Law Enforcement validity of the methodology and information and services, and for other assumptions used; (3) ways to enhance purposes. & Investigations Ride-Along Program. OMB Number: 0596–0170. the quality, utility, and clarity of the Daniel Whitley, Expiration Date of Approval: information to be collected; and (4) Acting Administrator, Foreign Agricultural November 30, 2022. ways to minimize the burden of the Service. Type of Request: Extension without collection of information on [FR Doc. 2021–12736 Filed 6–29–21; 8:45 am] revisions of an information collection. respondents, including the use of BILLING CODE 3410–10–P Abstract: This information collection automated, electronic, mechanical, or is necessary for Forest Service Law other technological collection Enforcement and Investigations (LEI) techniques or other forms of information DEPARTMENT OF AGRICULTURE personnel to authorize a rider who technology. applies to participate in the Ride-Along All comments received in response to Forest Service Program. The information collection this notice, including names and also provides additional protection for addresses when provided, will be a Information Collection: Forest Service LEI personnel who allow authorized matter of public record. Comments will Law Enforcement & Investigations riders to accompany them in boats, cars, be summarized and included in the Ride-Along Program trucks, or other vehicles. The purpose of information collection submission for AGENCY: Forest Service, Agriculture this program is for citizens to learn Office of Management and Budget (USDA). about and observe Forest Service LEI approval. ACTION: Notice; request for comment. tasks and activities. The program is Tracy Perry, intended to enhance Forest Service law Director, Law Enforcement and Investigations. SUMMARY: In accordance with the enforcement community relationships, Paperwork Reduction Act of 1995, the improve the quality of Forest Service [FR Doc. 2021–13977 Filed 6–29–21; 8:45 am] USDA Forest Service is seeking customer service, and provide LEI BILLING CODE 3411–15–P comments from all interested personnel a recruitment tool. A rider individuals and organizations on the shall complete two forms in order to renewal of a currently approved participate. COMMISSION ON CIVIL RIGHTS information collection, Forest Service Form FS–5300–33 asks for the Notice of Public Meeting of the Nevada Law Enforcement & Investigations Ride- participant’s name, address, social Advisory Committee Along Program. security number, driver’s license DATES: Comments must be received in number, work address, location of the AGENCY: U.S. Commission on Civil writing on or before August 30, 2021 to Ride-Along, and the reason for the Ride- Rights. be assured of consideration. Comments Along. Law enforcement officers use ACTION: Announcement of meeting. received after that date will be form FS–5300–33 to conduct a considered to the extent practicable. minimum background check before SUMMARY: Notice is hereby given, ADDRESSES: Commenters are encouraged authorizing a person to ride along. pursuant to the provisions of the rules to submit comments by email, if Form FS–5300–34 is signed by riders and regulations of the U.S. Commission possible. You may submit comments by to exempt law enforcement officers and on Civil Rights (Commission) and the any of the following methods: the Forest Service from damage, loss, or Federal Advisory Committee Act • Email: [email protected]. injury liability incurred during the (FACA) that the Nevada Advisory • Mail: Director of Law Enforcement rider’s participation in the program. If Committee (Committee) will hold a and Investigations, USDA Forest the information is not collected, riders meeting via web conference on

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Wednesday, July 7, 2021, from 1:00 p.m. Regional Programs Unit at the above TPA established the Corporation for to 2:00 p.m. Pacific Time. The purpose email or street address. Travel Promotion (the Corporation), as a of the meeting is to review a statement non-profit corporation charged with the Agenda concern regarding state COVID–19 development and execution of a plan to funding to respond to the needs of the I. Welcome (A) provide useful information to those education system. II. Review Statement of Concern interested in traveling to the United III. Public Comment DATES: The meeting will be held on States; (B) identify and address IV. Vote on Statement of Concern Wednesday, July 7, 2021, from 1:00 p.m. misperceptions regarding U.S. entry V. Adjournment policies; (C) maximize economic and to 2:00 p.m. PT. Exceptional Circumstance: Pursuant WebEx Information: Register online diplomatic benefits of travel to the to 41 CFR 102–3.150, the notice for this United States through the use of various https://civilrights.webex.com/meet/ meeting is given less than 15 calendar afortes. promotional activities; (D) ensure that days prior to the meeting because of the international travel benefits all States, Audio: (800) 360–9505, ID:199–167– exceptional circumstances of the COVID 8181. territories of the United States, and the crisis and DFO availability. District of Columbia, and identify FOR FURTHER INFORMATION CONTACT: Dated: June 24, 2021. opportunities to promote tourism to Ana Victoria Fortes, Designated David Mussatt, rural and urban areas equally, including Federal Officer (DFO) at afortes@ Supervisory Chief, Regional Programs Unit. areas not traditionally visited by usccr.gov or by phone at (202) 681– [FR Doc. 2021–13936 Filed 6–29–21; 8:45 am] international travelers; (E) give priority 0857. to countries and populations most likely BILLING CODE P SUPPLEMENTARY INFORMATION: Any to travel to the United States; and (F) interested member of the public may promote tourism to the United States through digital media, online platforms, call this number and listen to the DEPARTMENT OF COMMERCE meeting. Callers can expect to incur and other appropriate media. The Corporation is governed by a charges for calls they initiate over International Trade Administration Board of Directors, consisting of 11 wireless lines, and the Commission will members with knowledge of not refund any incurred charges. Callers Corporation for Travel Promotion international travel promotion or will incur no charge for calls they Board of Directors marketing, broadly representing various initiate over land-line connections to AGENCY: International Trade regions of the United States. The TPA the toll-free telephone number. Persons Administration, U.S. Department of directs the Secretary of Commerce (after with hearing impairments may also Commerce. consultation with the Secretary of follow the proceedings by first calling ACTION: Homeland Security and the Secretary of the Federal Relay Service at 1–800–877– Notice of an opportunity for State) to appoint the Board of Directors 8339 and providing the Service with the travel and tourism industry leaders to for the Corporation. conference call number and conference apply for membership on the Board of At this time, the Department will be ID number. Directors of the Corporation for Travel Promotion. selecting four individuals with the Members of the public are entitled to appropriate expertise and experience make comments during the open period SUMMARY: The Department of Commerce from specific sectors of the travel and at the end of the meeting. Members of is currently seeking applications from tourism industry to serve on the Board the public may also submit written travel and tourism leaders from specific as follows: comments; the comments must be industry sectors for membership on the 1. One (1) shall have appropriate received in the Regional Programs Unit Board of Directors (Board) of the expertise and experience as an official Office within 30 days following the Corporation for Travel Promotion (doing of a city convention and visitors’ meeting. Written comments may be business as Brand USA). The purpose of bureau; mailed to Ana Victoria Fortes at the Board is to guide the Corporation for 2. One (1) shall have appropriate [email protected] in the Regional Travel Promotion on matters relating to expertise and experience in the hotel Programs Unit Office/Advisory the promotion of the United States as a accommodations sector; Committee Management Unit. Persons travel destination and communication 3. One (1) shall have appropriate who desire additional information may of travel facilitation issues, among other expertise and experience in the contact the Regional Programs Unit tasks. restaurant or foodservice sector; and Office (202) 681–0587. DATES: All applications must be 4. One (1) shall have appropriate Records and documents discussed received by the National Travel and expertise and experience as an official during the meeting will be available for Tourism Office by close of business on of a State tourism office. public viewing prior to and after the Friday, September 10, 2021. To be eligible for Board membership, meetings at https:// individuals must have knowledge of ADDRESSES: Please submit application www.facadatabase.gov/FACA/FACA international travel and tourism information by email to CTPBoard@ PublicViewCommitteeDetails?id= promotion or marketing and be a current trade.gov. a10t0000001gz1JAAQ or former chief executive officer, chief Please click on the ‘‘Committee FOR FURTHER INFORMATION CONTACT: Julie financial officer, or chief marketing Meetings’’ tab. Records generated from Heizer, National Travel and Tourism officer or have held an equivalent these meetings may also be inspected Office, U.S. Department of Commerce; management position. Additional and reproduced at the Regional telephone: 202.482.0140; email: consideration will be given to Programs Unit, as they become [email protected]. individuals who have experience available, both before and after the SUPPLEMENTARY INFORMATION: The working in U.S. multinational entities meetings. Persons interested in the work Travel Promotion Act of 2009 (TPA) was with marketing budgets, and/or who are of this Committee are directed to the signed into law on March 4, 2010 and audit committee financial experts as Commission’s website, https:// was amended in July 2010, December defined by the Securities and Exchange www.usccr.gov, or may contact the 2014, and again in December 2019. The Commission (in accordance with 15

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U.S.C. 7265). Individuals must be U.S. Dated: June 24, 2021. administrative review.3 On June 10, citizens, and in addition, cannot be Julie Heizer, 2020, Commerce declined to select federally registered lobbyists or Deputy Director, National Travel and Tourism Dongkuk Steel Mill Co., Ltd. (DSM) as registered as a foreign agent under the Office. a voluntary respondent in this review.4 Foreign Agents Registration Act of 1938, [FR Doc. 2021–13881 Filed 6–29–21; 8:45 am] On April 26, 2021, Commerce initiated as amended. BILLING CODE 3510–DR–P on new subsidy allegations on two 5 Those selected for the Board must be programs. Commerce tolled all deadlines in able to meet the time and effort administrative reviews by 50 days on commitments of the Board. DEPARTMENT OF COMMERCE April 24, 2020,6 and by an additional 60 Board members serve at the discretion International Trade Administration days on July 22, 2020.7 On January 29, of the Secretary of Commerce (who may 2021, Commerce extended the deadline remove any member of the Board for [C–580–837] for issuance of the preliminary results of good cause). The term of office of each this review by 120 days, until June 18, member of the Board appointed by the Certain Cut-To-Length Carbon-Quality 2021, in accordance with 19 CFR Secretary shall be three (3) years. Board Steel Plate From the Republic of 351.213(h)(2).8 members can serve a maximum of two Korea: Preliminary Results of For a complete description of the consecutive full three-year terms. Board Countervailing Duty Administrative events that followed the initiation of members are not considered Federal Review; 2019 this review, see the Preliminary government employees by virtue of their Decision Memorandum.9 A list of topics service as members of the Board and AGENCY: Enforcement and Compliance, discussed in the Preliminary Decision will receive no compensation from the International Trade Administration, Memorandum is included in the Federal government for their U.S. Department of Commerce. Appendix to this notice. The participation in Board activities. SUMMARY: The Department of Commerce Preliminary Decision Memorandum is a Members participating in Board (Commerce) preliminarily determines public document and is on file meetings and events may be paid actual that certain exporters/producers of electronically via Enforcement and travel expenses and per diem by the certain cut-to-length plate from the Compliance’s Antidumping and Corporation when away from their usual Republic of Korea (Korea) received Countervailing Duty Centralized places of residence. countervailable subsidies during the Electronic Service System (ACCESS). period of review (POR), January 1, 2019, Individuals who want to be ACCESS is available to registered users through December 31, 2019. considered for appointment to the Board at https://access.trade.gov. In addition, a should submit the following DATES: Applicable June 30, 2021. complete version of the Preliminary information by the Friday, September FOR FURTHER INFORMATION CONTACT: John Decision Memorandum can be accessed 10, 2021 deadline to the email address Conniff, AD/CVD Operations, Office III, directly at http://enforcement.trade.gov/ listed in the ADDRESSES section above: Enforcement and Compliance, frn/. 1. Name, title, and personal resume of International Trade Administration, Scope of the Order U.S. Department of Commerce, 1401 the individual requesting consideration, The product covered by this order is Constitution Avenue NW, Washington, including address, email address, and certain cut-to-length carbon-quality steel phone number. DC 20230; telephone: (202) 482–1009. SUPPLEMENTARY INFORMATION: 2. A brief statement of why the person 3 See Memorandum, ‘‘Countervailing Duty should be considered for appointment Administrative Review of Certain Cut-to-Length Background Carbon-Quality Steel Plate from the Republic of to the Board. This statement should also On February 10, 2000, Commerce Korea: Selection of Respondents for Individual address the individual’s relevant published in the Federal Register the Examination,’’ dated May 6, 2020. 4 See Memorandum, ‘‘Administrative Review of international travel and tourism countervailing duty (CVD) order on CTL marketing experience and audit the Countervailing Duty (CVD) Order on Certain Plate from Korea.1 On April 20, 2020, Cut-to-Length Carbon-Quality Steel Plate (CTL committee financial expertise, if any, Commerce published in the Federal Plate) from the Republic of Korea (Korea),’’ dated and indicate clearly the sector or sectors Register its initiation of the CVD June 10, 2020. enumerated above in which the 5 See Memorandum, ‘‘Administrative Review of administrative review of the Order for the Countervailing Duty Order on Certain Cut-To- individual has the requisite expertise the period of January 1, 2019, to and experience. Individuals who have Length Carbon-Quality Steel Plate from the December 31, 2019.2 On May 6, 2020, Republic of Korea: New Subsidy Allegations,’’ the requisite expertise and experience in Commerce selected Hyundai Steel Co., dated April 26, 2021. more than one sector can be appointed Ltd. (Hyundai Steel) as the sole 6 See Memorandum, ‘‘Tolling of Deadlines for Antidumping and Countervailing Duty for only one of those sectors. mandatory respondent in this Appointments of members to the Board Administrative Reviews in Response to Operational will be made by the Secretary of Adjustments Due to COVID–19,’’ dated April 24, 1 See Notice of Amended Final Determinations: 2020. Commerce. Certain Cut-to-Length Carbon-Quality Steel Plate 7 See Memorandum, ‘‘Tolling of Deadlines for 3. An affirmative statement that the from India and the Republic of Korea; and Notice Antidumping and Countervailing Duty applicant (1) is a U.S. citizen, (2) is not of Countervailing Duty Orders: Certain Cut-To- Administrative Reviews,’’ dated July 22, 2020. Length Carbon-Quality Steel Plate from France, 8 See Memorandum, ‘‘Cut-to-Length Carbon a federally-registered lobbyist and India, Indonesia, Italy, and the Republic of Korea, Quality Steel Plate from the Republic of Korea: further, (3) is not required to register as 65 FR 6587 (February 10, 2000) (Order). Extension of Deadline for Preliminary Results of a foreign agent under the Foreign Agents 2 See Initiation of Antidumping and Countervailing Duty Administrative Review,’’ dated Registration Act of 1938, as amended. Countervailing Duty Administrative Reviews, 85 FR January 29, 2021. 19730 (April 20, 2020) (Initiation Notice). The 9 See Memorandum, ‘‘Decision Memorandum for 4. A statement of whether the Initiation Notice lists the company name Hyundai the Preliminary Results of the Countervailing Duty applicant is or is not an audit committee Steel Co., Ltd. (as requested by the petitioners) and Administrative Review, 2019: Cut-to-Length Carbon Hyundai Steel Company (as requested by the firm Quality Steel Plate from the Republic of Korea from financial expert as defined by the itself). For purposes of this notice, we are treating the Republic of Korea,’’ dated concurrently with, Securities and Exchange Commission both firms as the same company and hereinafter and hereby adopted by, this notice (Preliminary (in accordance with 15 U.S.C. 7265). refer to them as Hyundai Steel. Decision Memorandum).

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plate. For a complete description of the In the most recently completed Cash Deposit Rate scope of the Order, see the Preliminary administrative review of this order, we Pursuant to section 751(a)(2)(C) of the Decision Memorandum. calculated a net subsidy rate of 0.28 Act, Commerce intends to instruct CBP percent ad valorem for DSM. Therefore, Methodology to collect cash deposits of estimated consistent with Commerce’s practice, countervailing duties in the amount Commerce is conducting this CVD described above, we are assigning the indicated above with regard to administrative review in accordance rate of 0.28 percent ad valorem to DSM, shipments of subject merchandise with section 751(a)(l)(A) of the Tariff based on the company’s rate calculated entered, or withdrawn from warehouse, Act of 1930, as amended (the Act). For 14 in the prior review. for consumption on or after the date of each of the subsidy programs found With regard to the two other publication of the final results of this countervailable, we preliminarily remaining non-selected companies, for review. For all non-reviewed firms, we determine that there is a subsidy, i.e., a which an individual rate was not will instruct CBP to continue to collect financial contribution by an ‘‘authority’’ calculated, we are assigning the rate of cash deposits of estimated that confers a benefit to the recipient, 0.50 percent ad valorem, which is the countervailing duties at the most recent and that the subsidy is specific.10 For a only above de minimis rate calculated in company-specific or all-others rate full description of the methodology the most recently completed applicable to the company, as underlying our conclusions, see the administrative review.15 appropriate. These cash deposit Preliminary Decision Memorandum. Preliminary Results of Review instructions, when imposed, shall Rate for Non-Selected Companies remain in effect until further notice. Under Review As a result of this review, we preliminarily determine the following Disclosure and Public Comment To determine the rate for companies net countervailable subsidy rates for the Commerce intends to disclose to not selected for individual examination, period January 1, 2019, through parties to this proceeding the Commerce’s practice is to follow the December 31, 2019: calculations performed in reaching the instructions to calculate the all-others preliminary results within five days rate under section 705(c)(5) of the Act Net after the date of publication of this and weight average the net subsidy rates countervailable notice in the Federal Register.16 for the selected mandatory companies, Company subsidy Commerce intends to issue a post- excluding rates that are zero, de rate preliminary analysis memorandum minimis, or based entirely on facts (percent) subsequent to the publication of this available.11 In this review, we Hyundai Steel Co., Ltd ...... * 0.45 notice. Commerce will notify the parties preliminarily calculated a de minimis Dongkuk Steel Mill Co., Ltd * 0.28 to this proceeding of the deadlines for subsidy rate for the sole mandatory BDP International ...... 0.50 the submission of case and rebuttal respondent (i.e., Hyundai Steel) during Sung Jin Steel Co., Ltd ...... 0.50 briefs after the issuance of the post- the POR. In CVD proceedings, where the * de minimis. preliminary analysis memorandum. number of respondents being Rebuttal briefs, limited to issues raised individually examined has been limited, Assessment Rate in case briefs, may be filed within seven Commerce has determined that a days 17 after the time limit for filing case ‘‘reasonable method’’ to use to In accordance with 19 CFR briefs. Parties who submit case or determine the rate applicable to 351.221(b)(4)(i), Commerce has rebuttal briefs are requested to submit companies that were not individually preliminarily assigned subsidy rates as with each argument: (1) A statement of examined when all the rates of selected indicated above. Consistent with section the issue; (2) a brief summary of the mandatory respondents are zero or de 751(a)(2)(C) of the Act, upon issuance of argument; and (3) a table of minimis is to assign to the non-selected the final results, Commerce shall authorities.18 Note that Commerce has respondents the average of the most determine, and U.S. Customs and temporarily modified certain of its recently determined rates that are not Border Protection (CBP) shall assess, requirements for serving documents zero, de minimis, or based entirely on countervailing duties on all appropriate containing business proprietary facts available.12 However, if a non- entries covered by this review. information, until further notice.19 selected respondent has its own Commerce intends to issue assessment Interested parties who wish to request calculated rate that is contemporaneous instructions to CBP no earlier than 35 a hearing must do so within 30 days of with or more recent than such previous days after the date of publication of the publication of these preliminary results rates, Commerce has found it final results of this review in the by submitting a written request to the appropriate to apply that calculated rate Federal Register. If a timely summons is Assistant Secretary for Enforcement and to the non-selected respondent, even filed at the U.S. Court of International Compliance using ACCESS.20 Requests when that rate is zero or de minimis.13 Trade, the assessment instructions will direct CBP not to liquidate relevant should contain the party’s name, 10 See sections 771(5)(B) and (D) of the Act entries until the time for parties to file address, and telephone number, the regarding financial contribution; section 771(5)(E) a request for a statutory injunction has number of participants, whether any of the Act regarding benefit; and section 771(5A) of expired (i.e., within 90 days of participant is a foreign national, and a the Act regarding specificity. publication). list of the issues to be discussed. Issues 11 See, e.g., Certain Pasta from Italy: Final Results raised in the hearing will be limited to of the 13th (2008) Countervailing Duty Administrative Review, 75 FR 37386, 37387 (June Countervailing Duty Administrative Review and 29, 2010). Intent To Rescind the Review In Part; 2017, 85 FR 16 See 19 CFR 351.224(b). 12 See Certain Cut-to-Length Carbon-Quality Steel 3030 (January 17, 2020) unchanged in Steel 17 See Temporary Rule Modifying AD/CVD Plate from the Republic of Korea: Final Results of Concrete Reinforcing Bar from the Republic of Service Requirements Due to COVID–19; Extension Countervailing Duty Administrative Review; Turkey: Final Results and Partial Rescission of of Effective Period, 85 FR 41363 (July 10, 2020) Calendar Year 2018, 85 FR 84296 (December 28, Countervailing Duty Administrative Review; 2017, (Temporary Rule). 2020) (CTL Plate from Korea 2018 Final). 85 FR 42353 (July 14, 2020). 18 See 19 CFR 351.309(c)(2) and (d)(2). 13 See Steel Concrete Reinforcing Bar from the 14 See CTL Plate from Korea 2018 Final. 19 See Temporary Rule. Republic of Turkey: Preliminary Results of 15 Id. 20 See 19 CFR 351.310(c).

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those raised in the respective case and (AD) and countervailing duty (CVD) revocation of the AD Orders and the rebuttal briefs.21 If a request for a orders on welded line pipe from the CVD Order would likely lead to hearing is made, Commerce intends to Republic of Korea (Korea) and the continuation or recurrence of material hold the hearing at a time and date to Republic of Turkey (Turkey) would injury to an industry in the United be determined.22 Parties should confirm likely lead to continuation or recurrence States within a reasonably foreseeable the date and time of the hearing two of dumping, net countervailable time.6 subsidies, and material injury to an days before the scheduled date. Parties Scope of the Orders are reminded that all briefs and hearing industry in the United States, requests must be filed electronically Commerce is publishing a notice of The scope of these orders is circular using ACCESS and received continuation of these AD and CVD welded carbon and alloy steel (other successfully in their entirety by 5:00 orders. than stainless steel) pipe of a kind used for oil or gas pipelines (welded line p.m. Eastern Time on the due date. DATES: Applicable June 30, 2021. Unless the deadline is extended pipe), not more than 24 inches in FOR FURTHER INFORMATION CONTACT: nominal outside diameter, regardless of pursuant to section 751(a)(3)(A) of the Amaris Wade, Office II, AD/CVD Act, Commerce intends to issue the final wall thickness, length, surface finish, Operations, Enforcement and end finish, or stenciling. Welded line results of this administrative review, Compliance, International Trade including the results of its analysis of pipe is normally produced to the Administration, U.S. Department of American Petroleum Institute (API) the issues raised by parties in their Commerce, 1401 Constitution Avenue comments, within 120 days after the specification 5L, but can be produced to NW, Washington, DC 20230; telephone: comparable foreign specifications, to date of publication of these preliminary (202) 482–3874. results. proprietary grades, or can be non-graded SUPPLEMENTARY INFORMATION: material. All pipe meeting the physical Notification to Interested Parties Background description set forth above, including multiple-stenciled pipe with an API or This administrative review and notice On December 1, 2015, Commerce are issued and published in accordance comparable foreign specification line published the AD orders on welded line pipe stencil is covered by the scope of with sections 751(a)(1) and 777(i)(1) of pipe from Korea and Turkey,1 and the the Act, and 19 CFR 351.213 and 19 these orders. CVD order on welded line pipe from The welded line pipe that is subject CFR 351.221(b)(4). 2 Turkey. On November 2, 2020, the ITC to these orders is currently classifiable Dated: June 17, 2021. instituted,3 and on November 3, 2020, 4 in the Harmonized Tariff Schedule of Christian Marsh, Commerce initiated, the first five-year the United States (HTSUS) under Acting Assistant Secretary, for Enforcement (sunset) reviews of the AD Orders and subheadings 7305.11.1030, and Compliance. the CVD Order, pursuant to section 7305.11.5000, 7305.12.1030, 751(c) of the Tariff Act of 1930, as Appendix 7305.12.5000, 7305.19.1030, amended (the Act). As a result of its 7305.19.5000, 7306.19.1010, List of Topics Discussed in the Preliminary reviews, Commerce determined that 7306.19.1050, 7306.19.5110, and Decision Memorandum revocation of the AD Orders would be 7306.19.5150. The subject merchandise I. Summary likely to lead to continuation or may also enter in HTSUS 7305.11.1060 II. Background recurrence of dumping, and revocation and 7305.12.1060. While the HTSUS III. Period of Review of the CVD Order would be likely to subheadings are provided for IV. Non-Selected Rate lead to continuation or recurrence of V. Scope of the Order convenience and customs purposes, the countervailable subsidies. Therefore, written description of the scope of these VI. Subsidies Valuation Information Commerce notified the ITC of the VII. Analysis of Programs orders is dispositive. VIII. Recommendation magnitude of the margins of dumping and the net subsidy rates likely to Continuation of the Orders [FR Doc. 2021–13990 Filed 6–29–21; 8:45 am] prevail should the AD Orders and the As a result of the determinations by BILLING CODE 3510–DS–P CVD Order be revoked.5 Commerce and the ITC that revocation On June 24, 2021, the ITC published of the AD Orders and the CVD Order its determinations, pursuant to sections DEPARTMENT OF COMMERCE would likely lead to a continuation or 751(c) and 752(a) of the Act, that a recurrence of dumping, International Trade Administration countervailable subsidies, and material 1 See Welded Line Pipe From the Republic of injury to an industry in the United [A–580–876, A–489–822, C–489–823] Korea and the Republic of Turkey: Antidumping Duty Orders, 80 FR 75056 (December 1, 2015) (AD States, pursuant to section 751(d)(2) of Welded Line Pipe From the Republic of Orders). the Act and 19 CFR 351.218(a), Korea and the Republic of Turkey: 2 See Welded Line Pipe From the Republic of Commerce hereby orders the Turkey: Countervailing Duty Order, 80 FR 75054 Continuation of Antidumping and continuation of the AD Orders and the (December 1, 2015) (CVD Order). CVD Order. U.S. Customs and Border Countervailing Duty Orders 3 See Welded Line Pipe From Korea and Turkey; Institution of Five-Year Reviews, 85 FR 69354 Protection will continue to collect AD AGENCY: Enforcement and Compliance, (November 2, 2020). and CVD cash deposits at the rates in International Trade Administration, 4 See Initiation of Five-Year (Sunset) Reviews, 85 effect at the time of entry for all imports Department of Commerce. FR 69585 (November 3, 2020). of subject merchandise. 5 SUMMARY: As a result of the See Welded Line Pipe From the Republic of The effective date of the continuation Korea and the Republic of Turkey: Final Results of determinations by the Department of the Expedited First Sunset Reviews of the of the AD Orders and the CVD Order Commerce (Commerce) and the Antidumping Duty Orders, 86 FR 12172 (March 2, International Trade Commission (ITC) 2021), and accompanying Issues and Decision 6 See Certain Welded Line Pipe from Korea and that revocation of the antidumping duty Memorandum (IDM); see also Welded Line Pipe Turkey USITC Inv. Nos. 701–TA–525 and 731–TA– From the Republic of Turkey: Final Results of the 1260–1261 (Review), 86 FR 33356 (June 24, 2021); Expedited First Sunset Review of the Countervailing see also Certain Welded Line Pipe from Korea and 21 Id. Duty Order, 86 FR 13526 (March 9, 2021), and Turkey USITC Inv. Nos. 701–TA–525 and 731–TA– 22 See 19 CFR 351.310. accompanying IDM. 1260–1261 (Review), USITC Pub. 5202 (June 2021).

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will be the date of publication in the an additional 30 days for public As per section 6403(b) of the Act, Federal Register of this notice of comments. NOAA will require that Federal funds continuation. Pursuant to section Agency: National Oceanic & for any coral conservation financial 751(c)(2) of the Act and 19 CFR Atmospheric Administration (NOAA), assistance project may not exceed 50 351.218(c)(2), Commerce intends to Commerce. percent of the total cost. However, the initiate the next five-year review of the Title: Coral Reef Conservation Administrator may waive all or part of AD Orders and the CVD Order not later Program. the matching requirement if the than 30 days prior to the fifth OMB Control Number: 0648–0448. Administrator determines that no anniversary of the effective date of Form Number(s): None. reasonable means are available through continuation. Type of Request: Regular (Revision which an applicant can meet the and extension of current information matching requirement and the probable Administrative Protective Order collection). benefit of the project outweighs the Number of Respondents: 65. public interest in the matching This notice also serves as the only Average Hours per Response: requirement. The suitability for a waiver reminder to parties subject to Matching funds waiver request: 2 hours; is determined after the applicant has administrative protective order (APO) of Reviewer Comments: 3 hours; Semi- submitted a written request with the their responsibility concerning the Annual Progress Reports: 10 hours. return/destruction or conversion to Total Annual Burden Hours: 1,437 application package and provided the judicial protective order of proprietary hours. proper justification. information disclosed under APO in Needs and Uses: This request is for As per section 6403(f) of the Act, accordance with 19 CFR 351.305(a)(3). revision and extension of a currently NOAA will review eligible coral reef Failure to comply is a violation of the approved information collection. conservation proposals using an APO which may be subject to sanctions. The Coral Reef Conservation Act of external governmental review and merit-based peer review. As part of this Notification to Interested Parties 2000 (16 U.S.C. 6401 et seq.) was enacted on December 14, 2000, to review, NOAA will request and These five-year (sunset) reviews and preserve, sustain and restore the consider written comments on the this notice are in accordance with condition of coral reef ecosystems; to proposal from each Federal agency, state sections 751(c) and (d)(2) of the Act and promote the wise management and government, or other government published in accordance with section sustainable use of coral reef ecosystems jurisdiction, including the relevant 777(i) of the Act, and 19 CFR to benefit local communities and the regional Fishery Management Councils 351.218(f)(4). Nation; to develop sound scientific established under the Magnuson- Stevens Fishery Conservation and Dated: June 24, 2021. information on the condition of coral reef ecosystems and the threats to such Management Act (16 U.S.C. 1801 et Christian Marsh, ecosystems; to assist in the preservation seq.), or any National Marine Sanctuary, Acting Assistant Secretary for Enforcement of coral reefs by supporting with jurisdiction or management and Compliance. conservation programs, including authority over coral reef ecosystems in [FR Doc. 2021–13978 Filed 6–29–21; 8:45 am] projects that involve affected local the area where the project is to be BILLING CODE 3510–DS–P communities and non-governmental conducted. Pursuant to this requirement organizations; to provide financial of the Act, NOAA will apply the following standard in requesting DEPARTMENT OF COMMERCE resources for those programs and projects; and to establish a formal comments: (A) Proposals for projects in National Oceanic and Atmospheric mechanism for the collecting and state or territorial waters, including Administration allocating of monetary donations from Federal marine protected areas in such the private sector to be used for coral waters (e.g., National Marine Agency Information Collection reef conservation projects. Under Sanctuaries), will be submitted to that Activities; Submission to the Office of section 6403 of the Act, the Secretary, state or territorial government’s Management and Budget (OMB) for through the NOAA Administrator designated U.S. Coral Reef Task Force Review and Approval; Comment (Administrator) and subject to the point of contact for comment; (B) Request; Coral Reef Conservation availability of funds, is authorized to proposals for projects in Federal waters Program provide matching grants of financial will be submitted to the relevant Fishery assistance for coral reef conservation Management Council for comment; (C) The Department of Commerce will projects. Section 408(c) of the Act proposals for projects which require submit the following information authorizes at least $8,000,000 annually Federal permits will be submitted to the collection request to the Office of for financial assistance projects under Federal agency which issued the permit Management and Budget (OMB) for the Program. for comment; (D) proposals for projects review and clearance in accordance Collection activities for this program in Federal marine protected areas with the Paperwork Reduction Act of are outlined below and include: 1. managed by Federal agencies (e.g., 1995, on or after the date of publication Applicant creation and submission of National Wildlife Refuges, National of this notice. We invite the general requests for waivers of the non-Federal Parks, National Marine Sanctuaries, etc.) public and other Federal agencies to matching funds requirement; 2. Review will be submitted to the respective comment on proposed, and continuing of project proposals by Federal Agencies Federal management authority for information collections, which helps us and non-Federal entities with comment; and (E) NOAA will seek assess the impact of our information jurisdiction or management authority comments from other government collection requirements and minimize over coral reef ecosystems in the area entities, authorities, and/or the public’s reporting burden. Public where the project is to be conducted; jurisdictions, including international comments were previously requested and 3. Revision of performance entities for projects proposed outside of via the Federal Register on March 22, reporting methods to include a standard U.S. waters, as necessary based on the 2021 (86 FR 15204) during a 60-day program-specific template and tracking nature and scope of the proposed comment period. This notice allows for report. project.

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As per 2 CFR part 200.329, all entering either the title of the collection the western Pacific community recipients of non-construction federal or the OMB Control Number 0648–0448. development program, a community financial assistance awards are required must meet the criteria set forth in 50 Sheleen Dumas, to provide performance (technical) CFR part 665.20, and submit a reports to the agency at intervals no less Department PRA Clearance Officer, Office of community development plan that the Chief Information Officer, Commerce describes the purposes and goals of the frequently than annually and no more Department. frequently than quarterly in order for plan, the justification for proposed the agency to properly monitor the [FR Doc. 2021–14002 Filed 6–29–21; 8:45 am] fishing activities, and the degree of award and meet oversight BILLING CODE 3510–JE–P involvement by the indigenous responsibilities. The awarding agency community members, including contact information. This collection of must use OMB-approved common forms DEPARTMENT OF COMMERCE for this purpose or seek permission for information is needed to determine program-specific forms that will collect National Oceanic and Atmospheric whether communities submitting a the required data elements. The Coral Administration proposal are eligible for participation in Reef Conservation Program seeks OMB the community development program, approval to revise this information Agency Information Collection and whether the activities proposed collection to require use of a program- Activities; Submission to the Office of under the plan are consistent with the specific form for semi-annual reporting Management and Budget (OMB) for intent of the program, the Magnuson- and tracking specific indicators. These Review and Approval; Comment Stevens Act, and other applicable laws. indicators align with the new Coral Reef Request; Western Pacific Community Affected Public: Individuals or Conservation Program Strategic Plan Development Program Process households; Business or other for-profit (2018; https://www.coris.noaa.gov/ organizations; and Not-for-profit activities/strategic_plan2018) and will The Department of Commerce will institutions. be used to track national progress submit the following information Frequency: As required. toward these strategic goals through collection request to the Office of Respondent’s Obligation: Voluntary. Management and Budget (OMB) for Legal Authority: 50 CFR 665. 2040. The program-specific form for This information collection request semi-annual reporting will be a revised review and clearance in accordance with the Paperwork Reduction Act of may be viewed at https:// version of what is currently in use for www.reginfo.gov. Follow the NOAA’s Marine Debris Program and 1995, on or after the date of publication of this notice. We invite the general instructions to view the Department of will standardize reporting across Commerce collections currently under projects. public and other Federal agencies to comment on proposed, and continuing review by OMB. The number of respondents, information collections, which helps us Written comments and responses, and burden hours have been assess the impact of our information recommendations for the proposed corrected from the previous submission. collection requirements and minimize information collection should be The previous submission included the public’s reporting burden. Public submitted within 30 days of the federal employees and contractors comments were previously requested publication of this notice on the working on behalf of NOAA as part of via the Federal Register on March 2, following website www.reginfo.gov/ the burden for the collection. This 2021 (86 FR 12178) during a 60-day public/do/PRAMain. Find this burden has been removed and is instead comment period. This notice allows for particular information collection by added to the cost to the federal an additional 30 days for public selecting ‘‘Currently under 30-day government. comments. Review—Open for Public Comments’’ or Affected Public: Business or other for- Agency: NOAA National Marine by using the search function and profit organizations; Not-for-profit Fisheries Service, Commerce. entering either the title of the collection institutions; State or Local Government; Title: Western Pacific Community or the OMB Control Number 0648–0612. Federal government. Development Process. Sheleen Dumas, OMB Control Number: 0648–0612. Frequency: Semi Annual to Annual. Department PRA Clearance Officer, Office of Respondent’s Obligation: Required to Form Number(s): None. the Chief Information Officer, Commerce obtain or retain benefits. Type of Request: Regular submission Department. (extension of a currently approved Legal Authority: Coral Reef [FR Doc. 2021–13870 Filed 6–29–21; 8:45 am] collection). Conservation Act of 2000 (16 U.S.C. BILLING CODE 3510–22–P Number of Respondents: 5. 6401 et seq.). Average Hours per Response: 6 hours. This information collection request Total Annual Burden Hours: 30 DEPARTMENT OF COMMERCE may be viewed at www.reginfo.gov. hours. Follow the instructions to view the Needs and Uses: The National Marine National Oceanic and Atmospheric Department of Commerce collections Fisheries Service (NMFS) and the Administration currently under review by OMB. Western Pacific Fishery Management Written comments and Council (Council) established the [RTID 0648–XB158] recommendations for the proposed western Pacific community Fisheries of the Caribbean, Gulf of information collection should be development program to promote the Mexico, and South Atlantic; Reef Fish submitted within 30 days of the participation of western Pacific Fishery of Puerto Rico and the U.S. publication of this notice on the communities in fisheries that they have Virgin Islands; Exempted Fishing following website www.reginfo.gov/ traditionally depended upon, but in Permit public/do/PRAMain. Find this which they may not have the particular information collection by capabilities to support continued and AGENCY: National Marine Fisheries selecting ‘‘Currently under 30-day substantial participation, possibly due Service (NMFS), National Oceanic and Review—Open for Public Comments’’ or to economic, regulatory, or other Atmospheric Administration (NOAA), by using the search function and barriers. To be eligible to participate in Commerce.

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ACTION: Notice of receipt of an FOR FURTHER INFORMATION CONTACT: remaining trips would be conducted in application for an exempted fishing Sarah Stephenson, 727–824–5305; Puerto Rico territorial waters. The target permit; request for comments. email: [email protected]. depth range for this project is 100 to 650 SUPPLEMENTARY INFORMATION: The EFP is m, with sampling sites selected in each SUMMARY: NMFS announces the receipt requested under the authority of the 50 m depth range throughout the overall of an application for an exempted Magnuson-Stevens Fishery depth range. fishing permit (EFP) from the NMFS Conservation and Management Act (16 Project activities would be conducted Panama City, FL laboratory. If granted, U.S.C. 1801 et seq.), and regulations at from August 1, 2021, through August 1, the EFP would authorize NMFS or 50 CFR 600.745(b) concerning exempted 2023. Sampling off the coast of Puerto NMFS contracted observers and fishing. Rico would occur along the western commercial fishers aboard contracted The applicant is currently conducting coast from Isabela to Puerto Real, commercial fishing vessels to collect exempted fishing activities under an including Isla de Desecheo Marine certain deep-water snapper species in EFP for a similar deep-water snapper Reserve; along the northeast coast from waters of the U.S. exclusive economic research project off Puerto Rico that was San Juan to Fajardo, extending out to zone (EEZ) off Puerto Rico. The EFP issued on July 30, 2020, and is valid Isla de Culebra; and along the southeast would exempt this activity from through August 1, 2021. Notice of coast from Santa Isabel to Buena Vista, complying with certain seasonal and receipt of the application for the current extending out to Isla de Vieques. area closures and from certain bag limits EFP, with an opportunity to comment, Sampling is planned to occur for approximately 7 to 10 days per month in the U.S. Caribbean EEZ. The purpose published in the Federal Register on year-round over the duration of the EFP. of the EFP is to describe benthic habitats June 16, 2020 (85 FR 36377). No public for deep-water reef fish species off Sampling would be conducted by comments on that EFP were received hook-and-line drift fishing in deep- Puerto Rico and to determine life from that notice or since then. history information for black, blackfin, water habitats. On each fishing trip, The applicant requests authorization three to six sites would be fished per cardinal, queen, silk, and wenchman to collect deep-water reef fish species in snappers. day based on weather and distance the U.S. EEZ off the west coast, between the sampling sites. Four northeast coast, and southeast coast of DATES: Comments must be received no vertical lines would be deployed per Puerto Rico. The applicant is seeking to later than July 30, 2021. site. The first line would have a small, gather information that could be used to lightweight, water sampling device, ADDRESSES: You may submit comments describe habitats for deep-water reef fish which when impacting the seafloor, on the application, identified by species off Puerto Rico, and to obtain would trigger a syringe to collect a water ‘‘NOAA–NMFS–2021–0058’’, by any of additional life history information about sample (no hooks would be attached to the following methods: black, blackfin, cardinal, queen, silk, this line). The line would then be • Electronic Submission: Submit all and wenchman snappers. Specimens immediately retrieved. This line would electronic public comments via the would be collected by NMFS or NMFS also test for water current direction Federal e-Rulemaking Portal. Go to contracted observers and commercial before other equipment is deployed to https://www.regulations.gov and enter fishers aboard contracted commercial minimize the potential gear loss. ‘‘NOAA–NMFS–2021–0058’’ in the fishing vessels. These activities may be The second line would have an Search box. Click the ‘‘Comment’’ icon, conducted without NMFS staff aboard underwater video camera system complete the required fields, and enter the contracted commercial vessel. If encased in a lightweight frame with an or attach your comments. granted, this permit would exempt extended baited arm attached to the project participants from certain • Mail: Submit written comments to bottom portion of the line (no hooks seasonal and area closure regulations Sarah Stephenson, Southeast Regional would be attached to this line). Once codified at 50 CFR 622.435 and from Office, NMFS, 263 13th Avenue South, deployed, the underwater video camera certain reef fish bag limit regulations St. Petersburg, FL 33701. system would soak for 30 minutes at the codified at 50 CFR 622.437(b), as sampling site. Instructions: Comments sent by any identified and described below. Pending The third and fourth lines would each other method, to any other address or issuance, the EFP would be expected to have a maximum of 12 (#9) hooks individual, or received after the end of be effective from August 1, 2021, attached to the bottom portion of the the comment period, may not be through August 1, 2023. NMFS has line above a 5–10 pound bottom weight. considered by NMFS. All comments approved a Fishery Management Plan One line would be baited with fish and received are a part of the public record for the EEZ off Puerto Rico. Regulations the other line baited with squid. The and will generally be posted for public to implement that plan, which baited lines would be fished viewing on www.regulations.gov maintains the same seasonal and area simultaneously, and include a small without change. All personal identifying closures and bag limits applicable to blinking LED light attached to the line. information (e.g., name, address), Federal waters off Puerto Rico as under Once deployed, the two fishing lines confidential business information, or the Fishery Management Plan for the would soak for 20 minutes. All lines otherwise sensitive information Reef Fish Fishery or Puerto Rico and the would be retrieved via electric reel on submitted voluntarily by the sender will U.S. Virgin Islands and codified at 50 the commercial vessel. be publicly accessible. NMFS will CFR 622.435 and 622.437, are likely to The applicant would target black, accept anonymous comments (enter N/ be proposed in the near future. If those blackfin, cardinal queen, silk, and A in the required fields if you wish to regulations are finalized, the EFP will be wenchman snappers, but also remain anonymous). updated to reflect the proper citations anticipates encountering other deep- Electronic copies of the EFP for the exempted regulations. water reef fish species during sampling. application and related documents are Activities under the EFP would Each year, a maximum of 1,060 of the available from the website at https:// consist of harvesting reef fish during targeted species (up to 60 black snapper; www.fisheries.noaa.gov/southeast/ 135 fishing trips per year (45 trips per up to 200 blackfin snapper; up to 200 caribbean-exempted-fishing-permits- coast), of which 40 trips would be cardinal snapper; up to 200 queen efps. within the U.S. EEZ off Puerto Rico. The snapper; up to 200 silk snapper; and up

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to 200 wenchman snapper) would be 622.437(b)(1), though the EFP would Dated: June 24, 2021. retained under the EFP. Additionally, specify retention limits. Specifically, the Jennifer M. Wallace, each year, a maximum of 350 of the applicant would be limited to 30 Acting Director, Office of Sustainable incidental species (up to 100 vermilion groupers and snappers, combined, per Fisheries, National Marine Fisheries Service. snapper; up to 100 red hind; up to 100 person per day or, if 2 or more persons [FR Doc. 2021–13908 Filed 6–29–21; 8:45 am] black, red, tiger, and yellowfin grouper, are aboard, 60 groupers and snappers, BILLING CODE 3510–22–P combined; and up to 50 misty and combined, per vessel per day. The yellowedge grouper, combined) would parrotfish recreational bag limit of 2 be retained. If the incidental deep-water parrotfish per person per day or, if 3 or DEPARTMENT OF COMMERCE reef fish species are caught during the more persons are aboard, 6 parrotfish applicable seasonal and area closures, National Oceanic and Atmospheric per vessel per day would still apply. they would be possessed onboard the Administration The applicant intends to retain vessel only for the purpose of taking [RTID 0648–XB116] length measurements and tissue samples of the targeted species caught samples (fin clips or muscle plugs) prior during the seasonal or area closures. Taking and Importing of Marine to being returned to the water. After samples are taken from the Mammals Length measurements would be targeted species, the remainder of the recorded for all species caught except fish caught during a seasonal or area AGENCY: National Marine Fisheries for any species for which harvest is closure would be given to the contracted Service (NMFS), National Oceanic and prohibited under Federal law (i.e., commercial fishermen for personal use Atmospheric Administration (NOAA), goliath and Nassau groupers, and and consumption. For incidental Commerce. midnight, rainbow, and blue species, the EFP would allow the ACTION: Notice; affirmative finding parrotfishes). These prohibited species applicant to possess the species during annual renewals for Colombia, Ecuador, would be returned immediately to the the applicable seasonal and area El Salvador, Guatemala, Mexico, Peru, water with a minimum of harm. For the closures for sufficient time to record and Spain. targeted species, the gonads, eyes, fin or muscle tissues, and otoliths would be length measurements and to collect SUMMARY: The NMFS Assistant removed for histological and ageing tissue samples. If the targeted or Administrator (Assistant Administrator) analyses conducted by NMFS and the incidental species are caught outside the has completed an affirmative finding contracted observers, Puerto Rico’s closed seasons and closed areas, the annual renewal for the Governments of Department of Natural and commercial fishermen may retain them, Colombia, Ecuador, El Salvador, Environmental Resources, and the consistent with applicable law. Guatemala, Mexico, Peru, and Spain. University of South Carolina. NMFS finds this application warrants (referred to hereafter as ‘‘The Nations’’) In order to minimize the negative further consideration based on a under the Marine Mammal Protection biological effects of bringing these deep- preliminary review. Possible conditions Act (MMPA). These affirmative findings water species to the surface, the the agency may impose on this permit, will continue to allow the importation commercial fishing vessel would have if it is granted, include but are not into the United States of yellowfin tuna venting tools onboard to properly vent limited to, a prohibition on conducting and yellowfin tuna products harvested fish being released back in the water to sampling activities within marine in the eastern tropical Pacific Ocean facilitate their return to depth. protected areas, marine sanctuaries, or (ETP) for 1 year in compliance with the Under the EFP, the applicant would Agreement on the International Dolphin special management zones, without be allowed to fish for and possess deep- Conservation Program (AIDCP) by purse additional authorization, and requiring water reef fish species in or from the seine vessels operating under The Bajo de Sico closed area during the compliance with best practices in the Nations’ jurisdiction or exported from October 1 through March 31 closure event of interactions with any protected The Nations. NMFS bases the period (50 CFR 622.435(a)(2)(iv)). A species. NMFS may also require annual affirmative finding annual renewals on maximum of 25 fishing trips would reports summarizing the amount of reef reviews of documentary evidence occur per year in the Bajo de Sico area, fish species harvested during the submitted by the Governments of The 50 total during the project. Of those 50 seasonal and area closures, as well as Nations and of information obtained trips, it is estimated that 25 trips would during the period of effectiveness of any from the Inter-American Tropical Tuna occur during the seasonal closure in the issued EFP. Additionally, NMFS would Commission (IATTC). Bajo de Sico area. In addition, the require any sea turtles taken DATES: These affirmative finding annual applicant would be allowed to fish for incidentally during the course of the renewals are effective for the 1-year and possess the deep-water reef fish activities to be handled with due care to species during species-specific seasonal period of April 1, 2021, through March prevent injury to live specimens, 31, 2022. closures: Black, red, tiger, yellowfin, observed for activity, and returned to and yellowedge grouper during the FOR FURTHER INFORMATION CONTACT: the water. February 1 through April 30 seasonal Justin Greenman, West Coast Region, closure (50 CFR 622.435(a)(1)(i)); red A final decision on issuance of the National Marine Fisheries Service, 501 hind during the December 1 through the EFP will depend on NMFS’ review of W Ocean Blvd., Suite 4200, Long Beach, last day of February seasonal closure public comments received on the CA 90802, (562) 980–3264, from the EEZ west of 67°10′ W longitude application, consultations with the [email protected]. (50 CFR 622.435(a)(1)(ii)); and black, affected state(s), the Caribbean Fishery SUPPLEMENTARY INFORMATION: The blackfin, silk, and vermilion snappers Management Council, and the U.S. MMPA, 16 U.S.C. 1361 et seq., allows during the October 1 through December Coast Guard, and a determination that it for importation into the United States of 31 seasonal closure (50 CFR is consistent with all applicable law. yellowfin tuna harvested by purse seine 622.435(a)(1)(iii)). The applicant would vessels in the ETP from a nation with Authority: 16 U.S.C. 1801 et seq. also be exempt from certain recreational jurisdiction over purse seine vessels bag limit regulations at 50 CFR with carrying capacity greater than 400

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short tons that harvest tuna in the ETP intermediary nation embargo under 50 information. Please request webinar only if the nation has an ‘‘affirmative CFR 216.24(f)(9), which applies to invitations at least 24 hours in advance finding’’ issued by the NMFS Assistant exports from a nation that exports to the of each webinar. Administrator. See Section 101(a)(2)(B) United States yellowfin tuna or SEDAR address: 4055 Faber Place of the MMPA, 16 U.S.C. 1371(a)(2)(B); yellowfin tuna products that was subject Drive, Suite 201, North Charleston, SC see also 50 CFR 216.24(f)(6)(i). If to a ban on importation into the United 29405. requested by the government of such a States under section 101(a)(2)(B) of the FOR FURTHER INFORMATION CONTACT: Julie nation, the Assistant Administrator will MMPA, 16 U.S.C. 1371(a)(2)(B). A. Neer, SEDAR Coordinator; (843) 571– determine whether to make an These affirmative finding annual 4366; email: [email protected]. affirmative finding based upon renewals for The Nations are for the 1- documentary evidence provided by the year period of April 1, 2021, through SUPPLEMENTARY INFORMATION: The Gulf government, the IATTC, or the March 31, 2022. The Nations’ individual of Mexico, South Atlantic, and Department of State. 5-year affirmative findings, which have Caribbean Fishery Management The affirmative finding process varying start and end dates, remain Councils, in conjunction with NOAA requires that the harvesting nation is valid. Ecuador, Guatemala, Mexico, and Fisheries and the Atlantic and Gulf meeting its obligations under the AIDCP Spain’s 5-year affirmative findings will States Marine Fisheries Commissions and its obligations of membership in the remain valid through March 31, 2025. have implemented the Southeast Data, IATTC. Every 5 years, the government of Colombia’s 5-year affirmative finding Assessment and Review (SEDAR) the harvesting nation must request a will remain valid through March 31, process, a multi-step method for new affirmative finding and submit the 2024, El Salvador’s 5-year affirmative determining the status of fish stocks in required documentary evidence directly finding will remain valid through March the Southeast Region. SEDAR is a multi- to the Assistant Administrator. On an 31, 2023, and Peru’s 5-year affirmative step process including: (1) Data annual basis, NMFS must determine finding will remain valid through March Workshop; (2) Assessment Process whether the harvesting nation continues 31, 2022, subject to subsequent annual utilizing webinars; and (3) Review to meet the requirements of their 5-year reviews by NMFS. Workshop. The product of the Data affirmative finding. NMFS does this by Workshop is a data report that compiles Dated: June 24, 2021. reviewing the documentary evidence and evaluates potential datasets and from the last year. A nation may provide Paul N. Doremus, recommends which datasets are information related to compliance with Deputy Assistant Administrator for appropriate for assessment analyses. AIDCP and IATTC measures directly to Operations, National Marine Fisheries The product of the Assessment Process Service. NMFS on an annual basis or may is a stock assessment report that authorize the IATTC to release the [FR Doc. 2021–13948 Filed 6–29–21; 8:45 am] describes the fisheries, evaluates the information to NMFS to annually renew BILLING CODE 3510–22–P status of the stock, estimates biological an affirmative finding determination benchmarks, projects future population without an application from the DEPARTMENT OF COMMERCE conditions, and recommends research harvesting nation. and monitoring needs. The assessment An affirmative finding will be National Oceanic and Atmospheric is independently peer reviewed at the terminated, in consultation with the Administration Review Workshop. The product of the Secretary of State, if the Assistant Review Workshop is a Summary Administrator determines that the [RTID 0648–XB192] documenting panel opinions regarding requirements of 50 CFR 216.24(f) are no the strengths and weaknesses of the Fisheries of the Gulf of Mexico; longer being met or that a nation is stock assessment and input data. Southeast Data, Assessment, and consistently failing to take enforcement Participants for SEDAR Workshops are Review (SEDAR); Public Meeting actions on violations, thereby appointed by the Gulf of Mexico, South diminishing the effectiveness of the AGENCY: National Marine Fisheries Atlantic, and Caribbean Fishery AIDCP. Service (NMFS), National Oceanic and Management Councils and NOAA As a part of the affirmative finding Fisheries Southeast Regional Office, process set forth in 50 CFR 216.24(f)(8), Atmospheric Administration (NOAA), HMS Management Division, and for this annual renewal, the Assistant Commerce. Southeast Fisheries Science Center. Administrator considered documentary ACTION: Notice of SEDAR 74 Stock Participants include data collectors and evidence submitted by the Governments Identification (ID) Webinar III for Gulf of database managers; stock assessment of The Nations and obtained from the Mexico Red Snapper. scientists, biologists, and researchers; IATTC and has determined that The SUMMARY: The SEDAR 74 assessment of constituency representatives including Nations have met the MMPA’s Gulf of Mexico red snapper will consist fishermen, environmentalists, and requirements to receive affirmative of a Data workshop, a series of NGO’s; International experts; and staff finding annual renewals. assessment webinars, and a Review After consultation with the of Councils, Commissions, and state and workshop. See SUPPLEMENTARY Department of State, the Assistant federal agencies. INFORMATION. Administrator issued affirmative finding The items of discussion in the Stock annual renewals to The Nations, DATES: The SEDAR 74 Stock ID Webinar ID Webinars are as follows: allowing the continued importation into III will be held from 11 a.m. until 1 p.m. • Participants will use review genetic the United States of yellowfin tuna and Eastern, on July 22, 2021. studies, growth patterns, existing stock products derived from yellowfin tuna ADDRESSES: The meeting will be held definitions, prior SEDAR stock ID harvested in the ETP by purse seine via webinar. The webinar is open to recommendations, and any other vessels operating under The Nations’ members of the public. Those interested relevant information on red snapper jurisdiction or exported from The in participating should contact Julie A. stock structure. Nations. Issuance of affirmative finding Neer at SEDAR (see FOR FURTHER • Participants will make annual renewals for The Nations does INFORMATION CONTACT) to request an recommendations on biological stock not affect implementation of an invitation providing webinar access structure and define the unit stock or

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stocks to be addressed through this Council address: Mid-Atlantic Fishery SUMMARY: In accordance with the assessment. Management Council, 800 N State Paperwork Reduction Act of 1995 Although non-emergency issues not Street, Suite 201, Dover, DE 19901; (PRA), the Bureau of Consumer contained in this agenda may come telephone: (302) 674–2331; Financial Protection (Bureau) is before this group for discussion, those www.mafmc.org. requesting to renew the Office of issues may not be the subject of formal FOR FURTHER INFORMATION CONTACT: Management and Budget (OMB) action during this meeting. Action will Christopher M. Moore, Ph.D., Executive approval for an existing information be restricted to those issues specifically Director, Mid-Atlantic Fishery collection, titled, ‘‘State Official identified in this notice and any issues Notification Rule—12 CFR 1082.1.’’ arising after publication of this notice Management Council, telephone: (302) 526–5255. DATES: Written comments are that require emergency action under encouraged and must be received on or SUPPLEMENTARY INFORMATION: The section 305(c) of the Magnuson-Stevens before July 30, 2021 to be assured of purpose of this meeting is to make Fishery Conservation and Management consideration. Act, provided the public has been multi-year acceptable biological catch notified of the intent to take final action (ABC) recommendations for Golden ADDRESSES: Written comments and to address the emergency. Tilefish, Atlantic Mackerel, Summer recommendations for the proposed Flounder, Scup, Black Sea Bass, and information collection should be sent Special Accommodations Bluefish based on the results of the within 30 days of publication of this The meeting is physically accessible recently completed management track notice to www.reginfo.gov/public/do/ to people with disabilities. Requests for stock assessment updates. The SSC will PRAMain. Find this particular sign language interpretation or other review the previously recommended information collection by selecting auxiliary aids should be directed to the 2022 ABC and recommend new 2023– ‘‘Currently under 30-day Review—Open Council office (see ADDRESSES) at least 24 ABC specifications for Golden for Public Comments’’ or by using the 10 business days prior to each Tilefish; recommend 2022–23 search function. In general, all workshop. rebuilding ABC specifications for comments received will become public Note: The times and sequence specified in Atlantic Mackerel and Bluefish; and records, including any personal this agenda are subject to change. recommend new 2022–23 ABC information provided. Sensitive specifications for Summer Flounder, personal information, such as account Authority: 16 U.S.C. 1801 et seq. Scup, and Black Sea Bass. The SSC numbers or Social Security numbers, Dated: June 25, 2021. Economic Work Group will update the should not be included. Tracey L. Thompson, full SSC on the latest developments and FOR FURTHER INFORMATION CONTACT: Acting Deputy Director, Office of Sustainable current status of Research Set-Aside Documentation prepared in support of Fisheries, National Marine Fisheries Service. economic case study. The SSC will also this information collection request is [FR Doc. 2021–13983 Filed 6–29–21; 8:45 am] discuss potential topics to be covered available at www.reginfo.gov (this link BILLING CODE 3510–22–P during the joint Council-SSC meeting becomes active on the day following scheduled to take place as part of the publication of this notice). Select August 2021 Council meeting. In ‘‘Information Collection Review,’’ under DEPARTMENT OF COMMERCE addition, the SSC may take up any other ‘‘Currently Under Review,’’ use the business as necessary. Meeting materials dropdown menu ‘‘Select Agency’’ and National Oceanic and Atmospheric will be posted to www.mafmc.org. select ‘‘Consumer Financial Protection Administration Bureau’’ (recent submissions to OMB Special Accommodations [RTID 0648–XB195] will be at the top of the list). The same The meeting is physically accessible documentation is also available at Mid-Atlantic Fishery Management to people with disabilities. Requests for http://www.regulations.gov. Requests for Council (MAFMC); Public Meeting sign language interpretation or other additional information should be auxiliary aid should be directed to directed to Anthony May, Paperwork AGENCY: National Marine Fisheries Kathy Collins at the Mid-Atlantic Reduction Act Officer, at (202) 841– Service (NMFS), National Oceanic and Council Office (302) 526–5253 at least 5 0544, or email: [email protected]. If Atmospheric Administration (NOAA), days prior to the meeting date. you require this document in an Commerce. Dated: June 25, 2021. alternative electronic format, please ACTION: Notice; public meeting. _ Tracey L. Thompson, contact CFPB [email protected]. Please do not submit comments to these SUMMARY: The Scientific and Statistical Acting Deputy Director, Office of Sustainable Committee (SSC) of the Mid-Atlantic Fisheries, National Marine Fisheries Service. email boxes. Fishery Management Council (Council) [FR Doc. 2021–13984 Filed 6–29–21; 8:45 am] SUPPLEMENTARY INFORMATION: Title of Collection: State Official will hold a meeting. BILLING CODE 3510–22–P DATES: The meeting will be held on Notification Rule—12 CFR. 1082.1. Wednesday, July 21, 2021, starting at OMB Control Number: 3170–0019. Type of Review: Extension without 12:30 p.m. and continue through 12:30 BUREAU OF CONSUMER FINANCIAL change of an existing information p.m. on Friday, July 23, 2021. For PROTECTION collection. agenda details, see SUPPLEMENTARY Affected Public: State and local INFORMATION. [Docket No. CFPB–2021–0012] governments. ADDRESSES: The meeting will take place Estimated Number of Respondents: 3. over webinar using the Webex platform Agency Information Collection Estimated Total Annual Burden with a telephone-only connection Activities: Comment Request Hours: 1.5. option. Details on how to connect to the AGENCY: Bureau of Consumer Financial Abstract: Section 1042 of the Dodd– webinar by computer and by telephone Protection. Frank Wall Street Reform and Consumer will be available at: http:// Protection Act, 12 U.S.C. 5552 (Act), ACTION: Notice and request for comment. www.mafmc.org/ssc. gave authority to certain State and U.S.

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territorial officials to enforce the Act DEPARTMENT OF ENERGY and rate the specifically identified CRE and regulations prescribed thereunder. basic models in accordance with the Section 1042 also requires that the [Case Number 2020–023, EERE–2017–BT– alternate test procedure specified in the WAV–0027] Bureau issue a rule establishing how May 2017 Interim Waiver. AHT’s states are to provide notice to the Energy Conservation Program: representations concerning the energy Bureau before taking action to enforce Extension of Interim Waiver to AHT consumption of the specified basic the Act (or, in emergency situations, Cooling Systems GmbH and AHT models must be based on testing immediately after taking such an Cooling Systems USA Inc. From the according to the provisions and action). In accordance with the Department of Energy Commercial restrictions in the alternate test procedure set forth in the May 2017 requirements of the Act, the Bureau Refrigerator, Freezer, and Refrigerator- Interim Waiver, and the representations issued a final rule (12 CFR 1082.1) Freezer Test Procedure must fairly disclose the test results. establishing that notice should be AGENCY: Office of Energy Efficiency and Distributors, retailers, and private provided at least 10 days before the Renewable Energy, Department of labelers are held to the same filing of an action, with certain Energy. requirements when making exceptions, and setting forth a limited ACTION: representations regarding the energy set of information which is to be Notification of extension of interim waiver. consumption of this equipment. (42 provided with the notice. This is a U.S.C. 6314(d)) routine request for OMB to renew its SUMMARY: The U.S. Department of DOE makes decisions on waiver approval of the collections of Energy (‘‘DOE’’) is granting an interim extensions, including interim waiver information currently approved under waiver extension (Case No. 2020–023) to extensions, for only those basic models this OMB control number. The Bureau AHT Cooling Systems GmbH and AHT is not proposing any new or revised Cooling Systems USA Inc. (‘‘AHT’’) specified basic models are: IBIZA 100 (U) NAM–R, IBIZA 100 (U) NAM–IC, IBIZA 145 (U) NAM–R, collections of information pursuant to from specified portions of the DOE IBIZA 145 (U) NAM–IC, IBIZA 210 (U) NAM–R, this request. Commercial Refrigerators, Freezers, and IBIZA 210 (U) NAM–IC, MALTA 145 (U) NAM–R, Request for Comments: Comments are Refrigerator-Freezers (collectively MALTA 145 (U) NAM–IC, MALTA, 185 (U) NAM– ‘‘commercial refrigeration equipment’’ R, MALTA 185 (U) NAM–IC, MANHATTAN XL invited on: (a) Whether the collection of 175 (U) NAM–R, MANHATTAN XL 175 (U) NAM– information is necessary for the proper or ‘‘CRE’’) test procedure for IC, MANHATTAN XL 210 (U) NAM–R, determining the energy consumption of performance of the functions of the MANHATTAN XL 210 (U) NAM–IC, MIAMI 145 the specified AHT CRE basic models. (U) NAM–R, MIAMI 145 (U) NAM–IC, MIAMI XL Bureau, including whether the Under this extension, AHT is required EC 185 (U) NAM–R, MIAMI XL EC 185 (U) NAM– IC, MIAMI 210 (U) NAM–R, MIAMI 210 (U) NAM– information will have practical utility; to test and rate the specified basic (b) The accuracy of the Bureau’s IC, MIAMI 250 (U) NAM–R, MIAMI 250 (U) NAM– models in accordance with the alternate IC, PARIS 145 (U) NAM–R, PARIS 145 (U) NAM– estimate of the burden of the collection test procedure specified in the interim IC, PARIS EC 185 (U) NAM–R, PARIS EC 185 (U) of information, including the validity of waiver. NAM–IC, PARIS 210 (U) NAM–R, PARIS 210 (U) the methods and the assumptions used; NAM–IC, PARIS 250 (U) NAM–R, PARIS 250 (U) DATES: The Extension of Interim Waiver (c) Ways to enhance the quality, utility, NAM–IC, SYDNEY 175 (U) NAM–R, SYDNEY 175 is effective on June 30, 2021. (U) NAM–IC, SYDNEY 210 (U) NAM–R, SYDNEY and clarity of the information to be 210 (U) NAM–IC, SYDNEY EC 213 (U) NAM–R, FOR FURTHER INFORMATION CONTACT: collected; and (d) Ways to minimize the SYDNEY EC 213 (U) NAM–IC, SYDNEY EC 223 (U) Ms. Lucy deButts, U.S. Department of burden of the collection of information NAM–R, SYDNEY EC 223 (U) NAM–IC, SYDNEY Energy, Office of Energy Efficiency and 230 (U) NAM–R, SYDNEY 230 (U) NAM–IC, on respondents, including through the Renewable Energy, Building SYDNEY 250 (U) NAM–R, SYDNEY 250 (U) NAM– IC, SYDNEY XL 175 (U) NAM–R, SYDNEY XL 175 use of automated collection techniques Technologies Office, EE–5B, 1000 or other forms of information (U) NAM–IC, SYDNEY XL 210 (U) NAM–R, Independence Avenue SW, Washington, SYDNEY XL 210 (U) NAM–IC, SYDNEY XL 250 (U) technology. Comments submitted in DC 20585–0121. Email: AS_Waiver_ NAM–R, SYDNEY XL 250 (U) NAM–IC, response to this notice will be [email protected]. MONTREAL SLIM 175 (U) NAM–R, MONTREAL summarized and/or included in the SLIM 175 (U) NAM–IC, MONTREAL SLIM 210 (U) Mr. Pete Cochran, U.S. Department of NAM–R, MONTREAL SLIM 210 (U) NAM–IC, request for OMB approval. All Energy, Office of the General Counsel, MONTREAL SLIM 250 (U) NAM–R, MONTREAL comments will become a matter of Mail Stop GC–33, Forrestal Building, SLIM 250 (U) NAM–IC, MONTREAL SLIM PUSH public record. 1000 Independence Avenue SW, 175 (U) NAM–R, MONTREAL SLIM PUSH 175 (U) NAM–IC, MONTREAL SLIM PUSH 210 (U) NAM– Dated: June 24, 2021. Washington, DC 20585–0103. R, MONTREAL SLIM PUSH 210 (U) NAM–IC, Anthony May, Telephone: (202) 586–9496. Email: MONTREAL SLIM PUSH 250 (U) NAM–R, [email protected]. MONTREAL SLIM PUSH 250 (U) NAM–IC, Paperwork Reduction Act Officer, Bureau of MONTREAL XL 175 (U) NAM–R, MONTREAL XL Consumer Financial Protection. SUPPLEMENTARY INFORMATION: In 175 (U) NAM–IC, MONTREAL XL 210 (U) NAM– [FR Doc. 2021–13918 Filed 6–29–21; 8:45 am] accordance with Title 10 of the Code of R, MONTREAL XL 210 (U) NAM–IC, MONTREAL Federal Regulations (10 CFR XL 250 (U) NAM–R, MONTREAL XL 250 (U) NAM– BILLING CODE 4810–AM–P 431.401(g)), DOE gives notice of the IC, MONTREAL XL EC 185 (U) NAM–R, MONTREAL XL EC 185 (U) NAM–IC, MONTREAL issuance of an Extension of Interim XL EC 210 (U) NAM–R, MONTREAL XL EC 210 (U) Waiver as set forth below. The NAM–IC, MONTREAL XL EC PUSH 185 (U) NAM– Extension of Interim Waiver extends the R, MONTREAL XL EC PUSH 185 (U) NAM–IC, Interim Waiver granted to AHT on May MONTREAL XL EC PUSH 210 (U) NAM–R, MONTREAL XL EC PUSH 210 (U) NAM–IC, 26, 2017 (82 FR 24330, ‘‘May 2017 MONTREAL XL PUSH 175 (U) NAM–R, Interim Waiver’’) to include the AHT MONTREAL XL PUSH 175 (U) NAM–IC, basic models specified in this interim MONTREAL XL PUSH 210 (U) NAM–R, waiver extension, as requested by AHT MONTREAL XL PUSH 210 (U) NAM–IC, 1 MONTREAL XL PUSH 250 (U) NAM–R, on November 12, 2020. AHT must test MONTREAL XL PUSH 250 (U) NAM–IC (the petition listed basic model IAMI 145 (U) NAM–R, 1 AHT’s request is available at regulations.gov/ which DOE understands to mean MIAMI 145 (U) docket/EERE–2017–BT–WAV–0027–0014. The NAM–R).

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specifically set out in the request, not Under 42 U.S.C. 6314, EPCA sets forth ASHRAE Standard 72–2005, ‘‘Method of future models that may be manufactured the criteria and procedures DOE is Testing Commercial Refrigerators and by the petitioner. AHT may submit a required to follow when prescribing or Freezers’’ (‘‘ASHRAE 72–2005’’), new or amended petition for waiver and amending test procedures for covered requires beginning the test period at the request for grant of interim waiver, as equipment. EPCA requires that any test start of a defrost cycle and recording appropriate, for additional basic models procedures prescribed or amended data for 24 hours. AHT stated that the of CRE. Alternatively, if appropriate, under this section must be reasonably DOE test procedure would overstate the AHT may request that DOE extend the designed to produce test results which energy usage from the defrosting scope of a waiver or interim waiver to reflect the energy efficiency, energy use function. 82 FR 24330, 24335. include additional basic models or estimated annual operating cost of Based on its review, including the employing the same technology as the covered equipment during a information provided by AHT, DOE basic models set forth in the original representative average use cycle and initially determined that the current test petition consistent with 10 CFR requires that test procedures not be procedure at Appendix B would 431.401(g). unduly burdensome to conduct. (42 evaluate the CRE basic models specified U.S.C.6314(a)(2)) The test procedure for in the May 2017 Interim Waiver in a Case Number 2020–023 CRE is contained in 10 CFR part 431, manner so unrepresentative of their true Extension of Interim Waiver subpart C, appendix B—Amended energy consumption characteristics as to I. Background and Authority Uniform Test Method for the provide materially inaccurate Measurement of Energy Consumption of comparative data. Id. at 82 FR 24332– The Energy Policy and Conservation Commercial Refrigerators, Freezers, and 24333. The May 2017 Interim Waiver 2 Act, as amended (‘‘EPCA’’), authorizes Refrigerator-Freezers (‘‘Appendix B’’). specifies that AHT must test and rate DOE to regulate the energy efficiency of Any interested person may submit a the subject basic models such that the a number of consumer products and petition for waiver from DOE’s test energy consumption be determined certain industrial equipment. (42 U.S.C. procedure requirements. 10 CFR using an equation that incorporates the 3 6291–6317) Title III, Part C of EPCA 431.401(a)(1). DOE will grant a waiver energy consumption of two modified established the Energy Conservation from the test procedure requirements if tests. The first modified test would be Program for Certain Industrial DOE determines either that the basic a 24-hour test without a defrost cycle Equipment, which sets forth a variety of model for which the waiver was starting in steady state conditions with provisions designed to improve energy requested contains a design eight hours of door openings. The efficiency for certain types of industrial characteristic that prevents testing of the second modified test would include a equipment. This equipment includes basic model according to the prescribed defrost cycle starting after steady state Commercial Refrigerators, Freezers, and test procedures, or that the prescribed conditions are established and Refrigerator-Freezers (collectively test procedures evaluate the basic model continuing until the defrost cycle ‘‘commercial refrigeration equipment’’ in a manner so unrepresentative of its recovery is complete. Id. at 82 FR 24333. or ‘‘CRE’’), the focus of this document. true energy or water consumption On November 12, 2020, AHT (42 U.S.C. 6311(1)(E)) characteristics as to provide materially submitted a request to extend the scope The energy conservation program inaccurate comparative data. 10 CFR of the interim waiver, Case Number under EPCA consists essentially of four 431.401(f)(2). DOE may grant the waiver 2020–023, to the specified additional parts: (1) Testing, (2) labeling, (3) AHT basic models.5 AHT stated that Federal energy conservation standards, subject to conditions, including adherence to alternate test procedures. and (4) certification and enforcement 5 The specified basic models are: IBIZA 100 (U) procedures. Relevant provisions of Id. A petitioner may request that DOE NAM–R, IBIZA 100 (U) NAM–IC, IBIZA 145 (U) EPCA include definitions (42 U.S.C. NAM–R, IBIZA 145 (U) NAM–IC, IBIZA 210 (U) extend the scope of a waiver or an 6311), energy conservation standards NAM–R, IBIZA 210 (U) NAM–IC, MALTA 145 (U) interim waiver to include additional NAM–R, MALTA 145 (U) NAM–IC, MALTA, 185 (42 U.S.C. 6313), test procedures (42 basic models employing the same (U) NAM–R, MALTA 185 (U) NAM–IC, U.S.C. 6314), labeling provisions (42 MANHATTAN XL 175 (U) NAM–R, MANHATTAN U.S.C. 6315), and the authority to technology as the basic model(s) set XL 175 (U) NAM–IC, MANHATTAN XL 210 (U) require information and reports from forth in the original petition. 10 CFR NAM–R, MANHATTAN XL 210 (U) NAM–IC, MIAMI 145 (U) NAM–R, MIAMI 145 (U) NAM–IC, manufacturers (42 U.S.C. 6316). 431.401(g). DOE will publish any such extension in the Federal Register. Id. MIAMI XL EC 185 (U) NAM–R, MIAMI XL EC 185 The Federal testing requirements (U) NAM–IC, MIAMI 210 (U) NAM–R, MIAMI 210 consist of test procedures that II. Request for an Extension of Interim (U) NAM–IC, MIAMI 250 (U) NAM–R, MIAMI 250 manufacturers of covered equipment Waiver: Assertions and Determinations (U) NAM–IC, PARIS 145 (U) NAM–R, PARIS 145 must use as the basis for: (1) Certifying (U) NAM–IC, PARIS EC 185 (U) NAM–R, PARIS EC On May 26, 2017, DOE issued an 185 (U) NAM–IC, PARIS 210 (U) NAM–R, PARIS to DOE that their equipment complies Interim Waiver in Case Number CR–006 210 (U) NAM–IC, PARIS 250 (U) NAM–R, PARIS with the applicable energy conservation 250 (U) NAM–IC, SYDNEY 175 (U) NAM–R, granting AHT an interim waiver to test standards adopted pursuant to EPCA (42 SYDNEY 175 (U) NAM–IC, SYDNEY 210 (U) NAM– its AHT basic models specified in that R, SYDNEY 210 (U) NAM–IC, SYDNEY EC 213 (U) U.S.C. 6316(a); 42 U.S.C. 6295(s)), and interim waiver using an alternate test NAM–R, SYDNEY EC 213 (U) NAM–IC, SYDNEY (2) making representations about the procedure. 82 FR 24330 (‘‘May 2017 EC 223 (U) NAM–R, SYDNEY EC 223 (U) NAM–IC, efficiency of that equipment (42 U.S.C. SYDNEY 230 (U) NAM–R, SYDNEY 230 (U) NAM– Interim Waiver’’).4 AHT stated that their 6314(d)). Similarly, DOE must use these IC, SYDNEY 250 (U) NAM–R, SYDNEY 250 (U) basic models defrost less frequently NAM–IC, SYDNEY XL 175 (U) NAM–R, SYDNEY test procedures to determine whether than once every 24 hours. The DOE test XL 175 (U) NAM–IC, SYDNEY XL 210 (U) NAM– the equipment complies with relevant R, SYDNEY XL 210 (U) NAM–IC, SYDNEY XL 250 procedure, by reference to ANSI/ standards promulgated under EPCA. (42 (U) NAM–R, SYDNEY XL 250 (U) NAM–IC, U.S.C. 6316(a); 42 U.S.C. 6295(s)) MONTREAL SLIM 175 (U) NAM–R, MONTREAL 4 In the May 2017 Interim Waiver DOE declined SLIM 175 (U) NAM–IC, MONTREAL SLIM 210 (U) to grant AHT an interim waiver as it pertained to NAM–R, MONTREAL SLIM 210 (U) NAM–IC, 2 All references to EPCA in this document refer AHT’s petition regarding multi-mode operation. 82 MONTREAL SLIM 250 (U) NAM–R, MONTREAL to the statute as amended through the Energy Act FR 24330, 24332. That denial is not relevant to SLIM 250 (U) NAM–IC, MONTREAL SLIM PUSH of 2020, Public Law 116–260 (Dec. 27, 2020). AHT’s request for an extension or this Order 175 (U) NAM–R, MONTREAL SLIM PUSH 175 (U) 3 For editorial reasons, upon codification in the extending the interim waiver granted in the May NAM–IC, MONTREAL SLIM PUSH 210 (U) NAM– U.S. Code, Part C was redesignated as Part A–1. 2017 Interim Waiver. R, MONTREAL SLIM PUSH 210 (U) NAM–IC,

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these basic models have the same Brand Basic model Brand Basic model characteristics as the models covered by AHT ...... IBIZA 100 (U) NAM–R. AHT ...... MONTREAL XL 210 (U) NAM–R. the existing interim waiver. AHT ...... IBIZA 100 (U) NAM–IC. AHT ...... MONTREAL XL 210 (U) NAM–IC. DOE has reviewed AHT’s interim AHT ...... IBIZA 145 (U) NAM–R. AHT ...... MONTREAL XL 250 (U) NAM–R. waiver extension request and AHT ...... IBIZA 145 (U) NAM–IC. AHT ...... MONTREAL XL 250 (U) NAM–IC. determined that the CRE basic models AHT ...... IBIZA 210 (U) NAM–R. AHT ...... MONTREAL XL EC 185 (U) NAM–R. identified in AHT’s request incorporate AHT ...... IBIZA 210 (U) NAM–IC. AHT ...... MONTREAL XL EC 185 (U) NAM–IC. AHT ...... MALTA 145 (U) NAM–R. AHT ...... MONTREAL XL EC 210 (U) NAM–R. the same design characteristics as those AHT ...... MALTA 145 (U) NAM–IC. AHT ...... MONTREAL XL EC 210 (U) NAM–IC. basic models covered under the interim AHT ...... MALTA 185 (U) NAM–R. AHT ...... MONTREAL XL EC PUSH 185 (U) waiver in Case Number CR–006 such AHT ...... MALTA 185 (U) NAM–IC. NAM–R. that the test procedure evaluates these AHT ...... MANHATTAN XL 175 (U) NAM–R. AHT ...... MONTREAL XL EC PUSH 185 (U) AHT ...... MANHATTAN XL 175 (U) NAM–IC. NAM–IC. basic models in a manner that is AHT ...... MANHATTAN XL 210 (U) NAM–R. AHT ...... MONTREAL XL EC PUSH 210 (U) unrepresentative of their actual energy AHT ...... MANHATTAN XL 210 (U) NAM–IC. NAM–R. use. For the same reasons set forth in AHT ...... MIAMI 145 (U) NAM–R. AHT ...... MONTREAL XL EC PUSH 210 (U) the May 2017 Interim Waiver, DOE AHT ...... MIAMI 145 (U) NAM–IC. NAM–IC. AHT ...... MIAMI XL EC 185 (U) NAM–R. AHT ...... MONTREAL XL PUSH 175 (U) NAM– understands that the model lines AHT ...... MIAMI XL EC 185 (U) NAM–IC. R. identified in AHT’s request are not AHT ...... MIAMI 210 (U) NAM–R. AHT ...... MONTREAL XL PUSH 175 (U) NAM– capable of defrosting once every 24 AHT ...... MIAMI 210 (U) NAM–IC. IC. AHT ...... MIAMI 250 (U) NAM–R. AHT ...... MONTREAL XL PUSH 210 (U) NAM– hours as simulated by the DOE test AHT ...... MIAMI 250 (U) NAM–IC. procedure. See 82 FR 24330, 24332– R. AHT ...... PARIS 145 (U) NAM–R. AHT ...... MONTREAL XL PUSH 210 (U) NAM– 24333. Accordingly, DOE is extending AHT ...... PARIS 145 (U) NAM–IC. IC. the interim waiver in Case Number CR– AHT ...... PARIS EC 185 (U) NAM–R. AHT ...... MONTREAL XL PUSH 250 (U) NAM– AHT ...... PARIS EC 185 (U) NAM–IC. R. 006 to the CRE basic models identified AHT ...... PARIS 210 (U) NAM–R. by AHT in its interim waiver extension AHT ...... MONTREAL XL PUSH 250 (U) NAM– AHT ...... PARIS 210 (U) NAM–IC. IC. request. AHT ...... PARIS 250 (U) NAM–R. AHT ...... PARIS 250 (U) NAM–IC. III. Order AHT ...... SYDNEY 175 (U) NAM–R. (2) The alternate test procedure for the AHT ...... SYDNEY 175 (U) NAM–IC. AHT basic models referenced in After careful consideration of all the AHT ...... SYDNEY 210 (U) NAM–R. material submitted by AHT in this AHT ...... SYDNEY 210 (U) NAM–IC. paragraph (1) of this Order is the test matter, it is ordered that: AHT ...... SYDNEY EC 213 (U) NAM–R. procedure for CRE prescribed by DOE at (1) AHT must, as of the date of AHT ...... SYDNEY EC 213 (U) NAM–IC. 10 CFR part 431, subpart C, appendix B, publication of this Extension of Interim AHT ...... SYDNEY EC 223 (U) NAM–R. except the test period shall be selected AHT ...... SYDNEY EC 223 (U) NAM–IC. Waiver in the Federal Register, test and AHT ...... SYDNEY 230 (U) NAM–R. as follows: rate the following AHT brand AHT ...... SYDNEY 230 (U) NAM–IC. The first part of the test shall be a 24- commercial refrigerator and commercial AHT ...... SYDNEY 250 (U) NAM–R. hour test starting in steady-state ice-cream freezer basic models with the AHT ...... SYDNEY 250 (U) NAM–IC. conditions and including eight hours of AHT ...... SYDNEY XL 175 (U) NAM–R. alternate test procedure as set forth in AHT ...... SYDNEY XL 175 (U) NAM–IC. door opening (according to ASHRAE paragraph (2): AHT ...... SYDNEY XL 210 (U) NAM–R. Standard 72). The energy consumed in AHT ...... SYDNEY XL 210 (U) NAM–IC. this test, ET1, shall be recorded. AHT ...... SYDNEY XL 250 (U) NAM–R. MONTREAL SLIM PUSH 250 (U) NAM–R, The second part of the test shall be a MONTREAL SLIM PUSH 250 (U) NAM–IC, AHT ...... SYDNEY XL 250 (U) NAM–IC. MONTREAL XL 175 (U) NAM–R, MONTREAL XL AHT ...... MONTREAL SLIM 175 (U) NAM–R. defrost cycle, including any operation 175 (U) NAM–IC, MONTREAL XL 210 (U) NAM– AHT ...... MONTREAL SLIM 175 (U) NAM–IC. associated with a defrost. The start and R, MONTREAL XL 210 (U) NAM–IC, MONTREAL AHT ...... MONTREAL SLIM 210 (U) NAM–R. end points of the defrost cycle test AHT ...... MONTREAL SLIM 210 (U) NAM–IC. XL 250 (U) NAM–R, MONTREAL XL 250 (U) NAM– period shall be determined according to IC, MONTREAL XL EC 185 (U) NAM–R, AHT ...... MONTREAL SLIM 250 (U) NAM–R. MONTREAL XL EC 185 (U) NAM–IC, MONTREAL AHT ...... MONTREAL SLIM 250 (U) NAM–IC. the instructions for consumer XL EC 210 (U) NAM–R, MONTREAL XL EC 210 (U) AHT ...... MONTREAL SLIM PUSH 175 (U) refrigerators and refrigerator-freezers NAM–IC, MONTREAL XL EC PUSH 185 (U) NAM– NAM–R. outlined in 10 CFR part 430, subpart B, AHT ...... MONTREAL SLIM PUSH 175 (U) R, MONTREAL XL EC PUSH 185 (U) NAM–IC, appendix A, section 4.2.1.1 (for cycling MONTREAL XL EC PUSH 210 (U) NAM–R, NAM–IC. MONTREAL XL EC PUSH 210 (U) NAM–IC, AHT ...... MONTREAL SLIM PUSH 210 (U) compressor systems) or section 4.2.1.2 MONTREAL XL PUSH 175 (U) NAM–R, NAM–R. (for non-cycling compressor systems). MONTREAL XL PUSH 175 (U) NAM–IC, AHT ...... MONTREAL SLIM PUSH 210 (U) The energy consumed in this test, ET2, MONTREAL XL PUSH 210 (U) NAM–R, NAM–IC. MONTREAL XL PUSH 210 (U) NAM–IC, AHT ...... MONTREAL SLIM PUSH 250 (U) and duration, tDI, shall be recorded. MONTREAL XL PUSH 250 (U) NAM–R, NAM–R. Based on the measured energy MONTREAL XL PUSH 250 (U) NAM–IC (the AHT ...... MONTREAL SLIM PUSH 250 (U) consumption in these two tests, the petition listed basic model IAMI 145 (U) NAM–R, NAM–IC. daily energy consumption (DEC) in kWh which DOE understands to mean MIAMI 145 (U) AHT ...... MONTREAL XL 175 (U) NAM–R. NAM–R). AHT ...... MONTREAL XL 175 (U) NAM–IC. shall be calculated as:

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DEC= ET1 x (l44o tNm) ET2 1440 +-3.5

and

Where: that the interim waiver is no longer for Weatherization Enhancement and DEC = daily energy consumption, kWh; needed, or for other appropriate reasons. Innovation. Congress has directed DOE ET1 = energy consumed during the first part 10 CFR 431.401(k)(2). WAP in the Consolidated of the test, in kWh; (6) AHT remains obligated to fulfill all Appropriations Act of 2021, signed ET2 = energy consumed during the second applicable requirements set forth at 10 December 27, 2020, to implement part of the test, in kWh CFR part 429. Financial Assistance for Weatherization tNDI = normalized length of defrosting time Enhancement and Innovation. per day, in minutes; Signing Authority DATES: Written comments and tDI = length of time of defrosting test period, This document of the Department of in minutes; information on this NOI are requested 3.5 = time between defrost occurrences, in Energy was signed on June 23, 2021, by and will be accepted on or before July days; and Kelly Speakes-Backman, Principal 30, 2021. The tentative release date for 1440 = conversion factor, minutes per day. Deputy Assistant Secretary and Acting the funding opportunity announcement Assistant Secretary for Energy Efficiency (3) Representations. AHT may not is planned for Fall 2021, with concept and Renewable Energy, pursuant to make representations about the energy papers to be submitted in October 2021 delegated authority from the Secretary use of a basic model listed in paragraph and Full Applications to be submitted of Energy. That document with the (1) of this Order for compliance, in December 2021. This FOA timeline is original signature and date is marketing, or other purposes unless that subject to change. maintained by DOE. For administrative basic model has been tested in ADDRESSES: Interested persons are purposes only, and in compliance with accordance with the provisions of encouraged to submit comments by requirements of the Office of the Federal paragraph (2) of this Order and such email to the following address: Register, the undersigned DOE Federal representations fairly disclose the [email protected] with the Register Liaison Officer has been results of such testing. subject line ‘‘Announce Financial authorized to sign and submit the (4) This Extension of Interim Waiver Assistance for Weatherization document in electronic format for shall remain in effect according to the Enhancement and Innovation’’ included publication, as an official document of provisions of 10 CFR 431.401. in the message. Submit electronic the Department of Energy. This (5) This Extension of Interim Waiver comments in WordPerfect, Microsoft administrative process in no way alters is issued on the condition that the Word, PDF, or ASCII file format, and the legal effect of this document upon statements, representations, and avoid the use of special characters or publication in the Federal Register. documentation provided by AHT are any form of encryption. No valid. If AHT makes any modifications Signed in Washington, DC, on June 25, telefacsimiles (faxes) will be accepted. to the defrost controls of these basic 2021. For detailed instructions on submitting models, the interim waiver will no Treena V. Garrett, comments, see section III (Submission longer be valid and AHT will either be Federal Register Liaison Officer, U.S. of Comments) of this document. required to use the current Federal test Department of Energy. Although DOE has routinely accepted method or submit a new application for [FR Doc. 2021–13956 Filed 6–29–21; 8:45 am] public comment submissions through a a test procedure waiver. DOE may BILLING CODE 6450–01–P variety of mechanisms, including postal rescind or modify this Extension of mail and hand delivery/courier, the Interim Waiver (and/or the underlying Department has found it necessary to Order issued in Case Number CR–006) DEPARTMENT OF ENERGY make temporary modifications to the at any time if it determines the factual comment submission process in light of basis underlying the petition for Notice of Intent To Announce Financial the ongoing Covid–19 pandemic. DOE is extension of interim waiver (and/or the Assistance for Weatherization currently accepting only electronic underlying Order issued in Case Enhancement and Innovation submissions at this time. If a commenter Number CR–006) is incorrect, or the AGENCY: Office of Energy Efficiency and finds that this change poses an undue results from the alternate test procedure Renewable Energy, U.S. Department of hardship, please contact the DOE staff are unrepresentative of a basic model’s Energy. person listed in this notice. true energy consumption characteristics. ACTION: Notice of intent. FOR FURTHER INFORMATION CONTACT: 10 CFR 431.401(k)(1). Likewise, AHT Questions may be directed to Brittany may request that DOE rescind or modify SUMMARY: The U.S. Department of Price, U.S. Department of Energy, Office the Extension of Interim Waiver (and/or Energy’s (DOE), Office of Energy of Energy Efficiency and Renewable the underlying Order issued in Case Efficiency and Renewable Energy’s Energy, EE–5W, 1000 Independence Number CR–006) if AHT discovers an (EERE), Weatherization Assistance Avenue SW, Washington, DC 20585– error in the information provided to Program (WAP) intends to issue a 0121. Telephone: (240) 306–7252. DOE as part of its petition, determines Funding Opportunity Announcement Email: [email protected].

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SUPPLEMENTARY INFORMATION: The U.S. were held in March 2021 to solicit input believed to be confidential deleted. Department of Energy’s (DOE), Office of from WAP stakeholders regarding areas Submit these documents via email. DOE Energy Efficiency and Renewable of interest and award factors to help will make its own determination about Energy’s (EERE), Weatherization inform the FOA development. the confidential status of the Assistance Program (WAP) intends to DOE welcomes written comments information and treat it according to its issue a Funding Opportunity from the public on any subject within determination. Announcement (FOA) to implement the scope of this NOI. It is DOE’s policy that all comments Financial Assistance for Weatherization may be included in the public docket, Public Participation Enhancement and Innovation, as without change and as received, directed by section 1011(e) of the A. Submission of Comments including any personal information provided in the comments (except Consolidated Appropriations Act, 2021, DOE will accept comments, data, and information deemed to be exempt from Public Law 116–260. information regarding this notice no The purpose of this future FOA is to public disclosure). later than the date provided in the DATES (1) expand the number of dwelling units Signing Authority that are occupied by low-income section at the beginning of this notice. persons that receive weatherization Interested parties may submit comments This document of the Department of assistance by making such dwelling using any of the methods described in Energy was signed on June 25, 2021, by units weatherization-ready; (2) promote the ADDRESSES section at the beginning Kelly Speakes-Backman, Principal the deployment of renewable energy in of this document. Deputy Assistant Secretary and Acting dwelling units that are occupied by low- Submitting comments via email. Assistant Secretary for Energy Efficiency income persons; (3) ensure healthy Comments and documents submitted and Renewable Energy, pursuant to indoor environments by enhancing or via email will be posted to https:// delegated authority from the Secretary expanding health and safety measures www.regulations.gov. If you do not want of Energy. That document with the and resources available to dwellings your personal contact information to be original signature and date is that are occupied by low-income publicly viewable, do not include it in maintained by DOE. For administrative persons; (4) disseminate new methods your comment or any accompanying purposes only, and in compliance with and best practices among entities documents. Instead, provide your requirements of the Office of the Federal providing weatherization assistance, contact information in a cover letter. Register, the undersigned DOE Federal including enhanced client education; Include your first and last names, email Register Liaison Officer has been quality control of work performed; address, telephone number, and authorized to sign and submit the program monitoring; labor training; optional mailing address. The cover document in electronic format for planning and administration; (5) letter will not be publicly viewable as publication, as an official document of encourage entities providing long as it does not include any the Department of Energy. This weatherization assistance to hire and comments. administrative process in no way alters retain employees who are individuals Include contact information each time the legal effect of this document upon (A) from the community in which the you submit comments, data, documents, publication in the Federal Register. assistance is provided; and (B) from and other information to DOE. No telefacsimiles (faxes) will be accepted. Signed in Washington, DC, on June 25, communities or groups that are 2021. Comments, data, and other underrepresented in the home energy Treena V. Garrett, performance workforce, including information submitted to DOE electronically should be provided in Federal Register Liaison Officer, U.S. religious and ethnic minorities, women, Department of Energy. PDF (preferred), Microsoft Word or veterans, individuals with disabilities, [FR Doc. 2021–13985 Filed 6–29–21; 8:45 am] and individuals who are Excel, WordPerfect, or text (ASCII) file BILLING CODE 6450–01–P socioeconomically disadvantaged; and format. Provide documents that are not (6) for such other activities as the secured, written in English, and free of any defects or viruses. Documents Secretary determines to be appropriate. DEPARTMENT OF ENERGY In 2021, WAP has reserved $18.6 should not contain special characters or million for award through a competitive any form of encryption, and, if possible, Federal Energy Regulatory process. WAP is developing the award they should carry the electronic Commission scope and criteria with the intent to signature of the author. [Docket No. ER21–2109–000] release the FOA in the Fall 2021. This Campaign form letters. Please submit campaign form letters by the originating notice is not the FOA. Wheatridge Solar Energy Center, LLC; organization in batches of between 50 to It is anticipated that financial Supplemental Notice That Initial 500 form letters per PDF or as one form assistance for Weatherization Market-Based Rate Filing Includes letter with a list of supporters’ names Enhancement and Innovation will be Request for Blanket Section 204 compiled into one or more PDFs. This made available each year through 2025, Authorization depending on appropriated funds from reduces comment processing and Congress. Funding is not to exceed 2 posting time. This is a supplemental notice in the percent of WAP’s allocation, if such Confidential Business Information. above-referenced proceeding of amount is $225,000,000 or more but less Pursuant to 10 CFR 1004.11, any person Wheatridge Solar Energy Center, LLC’s than $260,000,000; 4 percent if such submitting information that he or she application for market-based rate amount is $260,000,000 or more but less believes to be confidential and exempt authority, with an accompanying rate than $300,000,000; or 6 percent if such by law from public disclosure should tariff, noting that such application amount is $300,000,000 or more. submit via email two well-marked includes a request for blanket Current WAP Grantees, Subgrantees and copies: One copy of the document authorization, under 18 CFR part 34, of other nonprofit entities will be eligible marked ‘‘confidential’’ including all the future issuances of securities and to apply for awards, with a $2 million information believed to be confidential, assumptions of liability. maximum award and three-year and one copy of the document marked Any person desiring to intervene or to performance period. Listening Sessions ‘‘non-confidential’’ with the information protest should file with the Federal

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Energy Regulatory Commission, 888 DEPARTMENT OF ENERGY other information, call (866) 208–3676 First Street NE, Washington, DC 20426, (toll free). For TTY, call (202) 502–8659. Federal Energy Regulatory in accordance with Rules 211 and 214 Dated: June 23, 2021. Commission of the Commission’s Rules of Practice Debbie-Anne A. Reese, and Procedure (18 CFR 385.211 and Deputy Secretary. 385.214). Anyone filing a motion to Combined Notice of Filings [FR Doc. 2021–13933 Filed 6–29–21; 8:45 am] intervene or protest must serve a copy Take notice that the Commission has BILLING CODE 6717–01–P of that document on the Applicant. received the following Natural Gas Notice is hereby given that the Pipeline Rate and Refund Report filings: deadline for filing protests with regard Docket Numbers: RP21–902–000. DEPARTMENT OF ENERGY to the applicant’s request for blanket Applicants: Algonquin Gas authorization, under 18 CFR part 34, of Transmission, LLC. Federal Energy Regulatory future issuances of securities and Description: § 4(d) Rate Filing: Commission assumptions of liability, is July 13, Updates to Tariff Contact Person to be [Docket No. EL21–85–000] 2021. effective 7/22/2021. The Commission encourages Filed Date: 6/22/21. SOO Green HVDC Link ProjectCo, LLC Accession Number: 20210622–5016. electronic submission of protests and v. PJM Interconnection, L.L.C.; Notice Comments Due: 5 p.m. ET 7/6/21. interventions in lieu of paper, using the of Complaint FERC Online links at http:// Docket Numbers: RP21–903–000. Applicants: Black Marlin Pipeline Take notice that on June 21, 2021, www.ferc.gov. To facilitate electronic pursuant to sections 206, 306, and 309 service, persons with internet access LLC. Description: § 4(d) Rate Filing: Black of the Federal Power Act, 16 U.S.C. who will eFile a document and/or be 824e, 825e, and 825h and Rule 206 of listed as a contact for an intervenor Marlin Pipeline LLC updates contact information to be effective 7/23/2021. the Federal Energy Regulatory must create and validate an Filed Date: 6/22/21. Commission’s (Commission) Rules of eRegistration account using the Accession Number: 20210622–5035. Practice and Procedure, 18 CFR 385.206 eRegistration link. Select the eFiling Comments Due: 5 p.m. ET 7/6/21. (2020), SOO Green HVDC Link link to log on and submit the ProjectCo, LLC (Complainant) filed a intervention or protests. Docket Numbers: RP21–904–000. formal complaint against PJM Applicants: Chief Oil & Gas LLC, Persons unable to file electronically Interconnection, L.L.C. (PJM or Southern Company Services, Inc. Respondent), alleging that PJM’s current may mail similar pleadings to the Description: Joint Petition for Limited Federal Energy Regulatory Commission, Open Access Transmission Tariff and Waiver of Capacity Release Regulations, Amended and Restated Operating 888 First Street NE, Washington, DC et al. of Chief Oil & Gas LLC, et al. 20426. Hand delivered submissions in Agreement are unjust and unreasonable, Filed Date: 6/22/21. because they require merchant docketed proceedings should be Accession Number: 20210622–5092. delivered to Health and Human transmission facilities to complete the Comments Due: 5 p.m. ET 7/6/21. profoundly-delayed generation Services, 12225 Wilkins Avenue, Docket Numbers: RP21–905–000. Rockville, Maryland 20852. interconnection process in order to be Applicants: SWN Energy Services studied and integrated into the grid, all In addition to publishing the full text Company, LLC, Indigo Minerals LLC. as more fully explained in its complaint. of this document in the Federal Description: Joint Petition for Limited The Complainant certify that copies of Register, the Commission provides all Waiver of Capacity Release Regulations, the complaint were served on the interested persons an opportunity to et al. of SWN Energy Services Company, contacts listed for Respondent in the view and/or print the contents of this LLC, et al. Commission’s list of Corporate Officials. document via the internet through the Filed Date: 6/22/21. Any person desiring to intervene or to Commission’s Home Page (http:// Accession Number: 20210622–5098. protest this filing must file in www.ferc.gov) using the ‘‘eLibrary’’ link. Comments Due: 5 p.m. ET 7/6/21. accordance with Rules 211 and 214 of Enter the docket number excluding the The filings are accessible in the the Commission’s Rules of Practice and last three digits in the docket number Commission’s eLibrary system (https:// Procedure (18 CFR 385.211, 385.214). field to access the document. At this elibrary.ferc.gov/idmws/search/ Protests will be considered by the time, the Commission has suspended fercgensearch.asp) by querying the Commission in determining the access to the Commission’s Public docket number. appropriate action to be taken, but will Reference Room, due to the Any person desiring to intervene or not serve to make protestants parties to proclamation declaring a National protest in any of the above proceedings the proceeding. Any person wishing to Emergency concerning the Novel must file in accordance with Rules 211 become a party must file a notice of Coronavirus Disease (COVID–19), issued and 214 of the Commission’s intervention or motion to intervene, as by the President on March 13, 2020. For Regulations (18 CFR 385.211 and appropriate. The Respondent’s answer assistance, contact the Federal Energy 385.214) on or before 5:00 p.m. Eastern and all interventions, or protests must Regulatory Commission at time on the specified comment date. be filed on or before the comment date. [email protected] or call Protests may be considered, but The Respondent’s answer, motions to toll-free, (886) 208–3676 or TYY, (202) intervention is necessary to become a intervene, and protests must be served 502–8659. party to the proceeding. on the Complainant. Dated: June 23, 2021. eFiling is encouraged. More detailed The Commission strongly encourages information relating to filing electronic filings of comments, protests Debbie-Anne A. Reese, requirements, interventions, protests, and interventions in lieu of paper using Deputy Secretary. service, and qualifying facilities filings the ‘‘eFiling’’ link at http:// [FR Doc. 2021–13926 Filed 6–29–21; 8:45 am] can be found at: http://www.ferc.gov/ www.ferc.gov. Persons unable to file BILLING CODE 6717–01–P docs-filing/efiling/filing-req.pdf. For electronically may mail similar

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pleadings to the Federal Energy Diablo Energy Storage, EG21–116–000 ER20–2888–002; ER21–965–001; ER21– Regulatory Commission, 888 First Street LLC. 1259–001. NE, Washington, DC 20426. Hand Azure Sky Solar Project, EG21–117–000 Applicants: Arlington Valley Solar delivered submissions in docketed LLC. Energy II, LLC, Centinela Solar Energy, Sky River Wind, LLC ...... EG21–118–000] proceedings should be delivered to LLC, Solar Star California XIII, LLC, Health and Human Services, 12225 Take notice that during the month of Kingbird Solar A, LLC, Kingbird Solar Wilkins Avenue, Rockville, Maryland May 2021, the status of the above- B, LLC, Nicolis, LLC, Tropico, LLC, CA 20852. captioned entities as Exempt Wholesale Flats Solar 130, LLC, Imperial Valley In addition to publishing the full text Generators became effective by Solar 3, LLC, CA Flats Solar 150, LLC, of this document in the Federal operation of the Commission’s GASNA 6P, LLC, GASNA 36P, LLC, Register, the Commission provides all regulations. 18 CFR 366.7(a) (2020). Townsite Solar, LLC, Ventura Energy interested persons an opportunity to Dated: June 23, 2021. Storage, LLC, Coso Battery Storage, LLC. view and/or print the contents of this Debbie-Anne A. Reese, Description: Notice of Non-Material Change in Status of Arlington Valley document via the internet through the Deputy Secretary. Commission’s Home Page (http:// Solar Energy II, LLC, et al. [FR Doc. 2021–13935 Filed 6–29–21; 8:45 am] Filed Date: 6/22/21. www.ferc.gov) using the ‘‘eLibrary’’ link. BILLING CODE 6717–01–P Enter the docket number excluding the Accession Number: 20210622–5176. last three digits in the docket number Comments Due: 5 p.m. ET 7/13/21. field to access the document. At this DEPARTMENT OF ENERGY Docket Numbers: ER14–1818–021; time, the Commission has suspended ER21–1372–001; ER21–1374–001. access to the Commission’s Public Federal Energy Regulatory Applicants: Boston Energy Trading Reference Room, due to the Commission and Marketing LLC, Diamond Retail proclamation declaring a National Energy, LLC, Diamond Energy East, Emergency concerning the Novel Combined Notice of Filings #1 LLC. Description: Triennial Market Power Coronavirus Disease (COVID–19), issued Take notice that the Commission by the President on March 13, 2020. For Analysis for Central Region of Boston received the following exempt Energy Trading and Marketing LLC, et assistance, contact the Federal Energy wholesale generator filings: Regulatory Commission at al. [email protected], or call Docket Numbers: EG21–179–000. Filed Date: 6/21/21. Applicants: Clover Creek Solar, LLC. toll-free, (886) 208–3676 or TYY, (202) Accession Number: 20210621–5182. Description: Notice of Self- 502–8659. Comments Due: 5 p.m. ET 8/20/21. Certification of EWG Status of Clover Docket Numbers: ER21–21–002. Comment Date: 5:00 p.m. Eastern Creek Solar, LLC. Time on July 12, 2021. Applicants: Harts Mill Solar, LLC. Filed Date: 6/23/21. Description: Compliance filing: Dated: June 23, 2021. Accession Number: 20210623–5106. Informational Filing Pursuant to Section Debbie-Anne A. Reese, Comments Due: 5 p.m. ET 7/14/21. 2 of the PJM Tariff to be effective N/A. Deputy Secretary. Docket Numbers: EG21–180–000. Filed Date: 6/23/21. [FR Doc. 2021–13925 Filed 6–29–21; 8:45 am] Applicants: Antelope Expansion 1B, Accession Number: 20210623–5092. BILLING CODE 6717–01–P LLC. Comments Due: 5 p.m. ET 7/14/21. Description: Notice of Self- Docket Numbers: ER21–2183–000. Certification of Exempt Wholesale Applicants: Southwest Power Pool, DEPARTMENT OF ENERGY Generator Status of Antelope Expansion Inc. 1B, LLC. Description: § 205(d) Rate Filing: 3825 Federal Energy Regulatory Filed Date: 6/23/21. Prairie Hills Wind GIA to be effective 6/ Commission Accession Number: 20210623–5116. 14/2021. Comments Due: 5 p.m. ET 7/14/21. Notice of Effectiveness of Exempt Filed Date: 6/23/21. Take notice that the Commission Accession Number: 20210623–5017. Wholesale Generator Status received the following electric rate Comments Due: 5 p.m. ET 7/14/21. June 23, 2021. filings: Docket Numbers: ER21–2185–000. Docket Numbers: ER10–1818–027; Applicants: PJM Interconnection, Tumbleweed Solar LLC .... [EG21–99–000 ER10–1819–031; ER10–1820–034. L.L.C. PGR 2020 Lessee 8, LLC .. EG21–100–000 Applicants: Public Service Company Description: § 205(d) Rate Filing: Sugar Solar, LLC ...... EG21–101–000 of Colorado; Northern States Power Original IISA, Service Agreement No. BigBeau Solar, LLC ...... EG21–102–000 Company, a Minnesota corporation; 6095; Queue No. AE2–224 to be Valley Center ESS, LLC .... EG21–103–000 Northern States Power Company, a Crystal Lake Wind Energy EG21–104–000 effective 5/28/2021. III, LLC. Wisconsin corporation. Filed Date: 6/23/21. Elara Energy Project, LLC EG21–105–000 Description: Notice of Change in Accession Number: 20210623–5056. Taygete Energy Project II, EG21–106–000 Status of Public Service Company of Comments Due: 5 p.m. ET 7/14/21. LLC. Colorado, et al. Docket Numbers: ER21–2186–000. Citadel Solar, LLC ...... EG21–107–000 Filed Date: 6/23/21. Applicants: Duke Energy Florida, Assembly Solar II, LLC .... EG21–108–000 Accession Number: 20210623–5096. LLC. Shaw Creek Solar, LLC .... EG21–109–000 Comments Due: 5 p.m. ET 7/14/21. Description: § 205(d) Rate Filing: DEF- Swoose LLC ...... EG21–110–000 Docket Numbers: ER13–1430–012; Gulf Power Conurrence to Facility Flower Valley LLC ...... EG21–111–000 Maverick Solar 6, LLC ...... EG21–112–000 ER13–1561–011; ER15–1218–010; Construction Agreement for Affected Samson Solar Energy LLC EG21–113–000 ER16–38–008; ER16–39–007; ER16– Sys to be effective 6/17/2021. Hawtree Creek Farm EG21–114–000 2501–004; ER16–2502–004; ER17–2341– Filed Date: 6/23/21. Solar, LLC. 004; ER17–2453–004; ER18–713–003; Accession Number: 20210623–5067. Maverick Solar 7, LLC ...... EG21–115–000 ER18–1076–003; ER18–1077–003; Comments Due: 5 p.m. ET 7/14/21.

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Docket Numbers: ER21–2187–000. can be found at: http://www.ferc.gov/ Services, 12225 Wilkins Avenue, Applicants: PJM Interconnection, docs-filing/efiling/filing-req.pdf. For Rockville, Maryland 20852. L.L.C. other information, call (866) 208–3676 In addition to publishing the full text Description: § 205(d) Rate Filing: (toll free). For TTY, call (202) 502–8659. of this document in the Federal Amendment to ISA/CSA, Service Register, the Commission provides all Agreement Nos. 5364 and 5365; Queue Debbie-Anne A. Reese, interested persons an opportunity to No. AB2–160 to be effective 4/16/2019. Deputy Secretary. view and/or print the contents of this Filed Date: 6/23/21. [FR Doc. 2021–13928 Filed 6–29–21; 8:45 am] document via the internet through the Accession Number: 20210623–5077. BILLING CODE 6717–01–P Commission’s Home Page (http:// Comments Due: 5 p.m. ET 7/14/21. www.ferc.gov) using the ‘‘eLibrary’’ link. Docket Numbers: ER21–2188–000. Enter the docket number excluding the Applicants: Stoneray Power Partners, DEPARTMENT OF ENERGY last three digits in the docket number LLC. field to access the document. At this Federal Energy Regulatory time, the Commission has suspended Description: Market-Based Triennial Commission Review Filing: Triennial Market Power access to the Commission’s Public Update—Stoneray Power Partners to be [Docket No. ER21–2149–000] Reference Room, due to the effective 7/1/2021. proclamation declaring a National Filed Date: 6/23/21. Minco Wind Energy II, LLC; Emergency concerning the Novel Accession Number: 20210623–5098. Supplemental Notice That Initial Coronavirus Disease (COVID–19), issued Comments Due: 5 p.m. ET 8/23/21. Market-Based Rate Filing Includes by the President on March 13, 2020. For Docket Numbers: ER21–2189–000. Request for Blanket Section 204 assistance, contact the Federal Energy Applicants: PJM Interconnection, Authorization Regulatory Commission at [email protected] or call L.L.C. This is a supplemental notice in the Description: § 205(d) Rate Filing: toll-free, (886) 208–3676 or TTY, (202) above-referenced proceeding of Minco 502–8659. Amendment to ISA/CSA, Service Wind Energy II, LLC’s application for Agreement Nos. 5800 and 5834; Queue market-based rate authority, with an Dated: June 23, 2021. No. AC1–143 to be effective 9/17/2020. accompanying rate tariff, noting that Debbie-Anne A. Reese, Filed Date: 6/23/21. such application includes a request for Deputy Secretary. Accession Number: 20210623–5100. blanket authorization, under 18 CFR [FR Doc. 2021–13927 Filed 6–29–21; 8:45 am] Comments Due: 5 p.m. ET 7/14/21. part 34, of future issuances of securities BILLING CODE 6717–01–P Docket Numbers: ER21–2190–000. and assumptions of liability. Applicants: Glaciers Edge Wind Any person desiring to intervene or to Project, LLC. protest should file with the Federal DEPARTMENT OF ENERGY Description: Market-Based Triennial Energy Regulatory Commission, 888 Review Filing: Triennial Market Power First Street NE, Washington, DC 20426, Federal Energy Regulatory Update—Glaciers Edge Wind to be in accordance with Rules 211 and 214 Commission effective 7/1/2021. of the Commission’s Rules of Practice [Docket No. CP21–458–000] Filed Date: 6/23/21. and Procedure (18 CFR 385.211 and Accession Number: 20210623–5101. 385.214). Anyone filing a motion to Golden Pass Pipeline, LLC; Notice of Comments Due: 5 p.m. ET 8/23/21. intervene or protest must serve a copy Application for Amendment and Docket Numbers: ER21–2191–000. of that document on the Applicant. Establishing Intervention Deadline Applicants: Public Service Company Notice is hereby given that the Take notice that on June 11, 2021, of Colorado. deadline for filing protests with regard Golden Pass Pipeline LLC (GPPL), 811 Description: § 205(d) Rate Filing: to the applicant’s request for blanket Louisiana Street, Suite 1400, Houston, 2021–06–23 PSCo-WAPA NITS–325– authorization, under 18 CFR part 34, of Texas 77002, filed an application under 0.3.0-Agrmt to be effective 6/24/2021. future issuances of securities and section 7(c) of the Natural Gas Act Filed Date: 6/23/21. assumptions of liability, is July 13, (NGA), and Part 157 of the Accession Number: 20210623–5124. 2021. Commission’s regulations requesting to Comments Due: 5 p.m. ET 7/14/21. The Commission encourages amend the authorization granted The filings are accessible in the electronic submission of protests and December 21, 2016 (December 2016 Commission’s eLibrary system (https:// interventions in lieu of paper, using the Order) 1 to construct and operate the elibrary.ferc.gov/idmws/search/ FERC Online links at http:// Section 3 export facilities. The proposed fercgensearch.asp) by querying the www.ferc.gov. To facilitate electronic MP 33 Compressor Station Modification docket number. service, persons with internet access Project(project) entails relocation of and Any person desiring to intervene or who will eFile a document and/or be modifications to a portion of the protest in any of the above proceedings listed as a contact for an intervenor facilities approved in the December must file in accordance with Rules 211 must create and validate an 2016 Order to enable GPPL to transport and 214 of the Commission’s eRegistration account using the domestically sourced natural gas to the Regulations (18 CFR 385.211 and eRegistration link. Select the eFiling export terminal facilities of Golden Pass 385.214) on or before 5:00 p.m. Eastern link to log on and submit the LNG Terminal LLC (GPLNG). time on the specified comment date. intervention or protests. Construction of the export terminal Protests may be considered, but Persons unable to file electronically facilities commenced in 2019. intervention is necessary to become a may mail similar pleadings to the The MP 33 Compressor Station party to the proceeding. Federal Energy Regulatory Commission, Modification Project or Project consists eFiling is encouraged. More detailed 888 First Street NE, Washington, DC of the following: (1) Relocate the Vidor information relating to filing 20426. Hand delivered submissions in requirements, interventions, protests, docketed proceedings should be 1 Golden Pass Products LLC and Golden Pass service, and qualifying facilities filings delivered to Health and Human Pipeline LLC, 157 FERC ¶ 61,222 (2016).

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Compressor Station approximately 50 Schedule for Environmental Review is following address below . Your written feet north-northwest to avoid an existing issued, it will indicate, among other comments must reference the Project pipeline right-of-way based on a milestones, the anticipated date for the docket number (CP21–458–000). landowner request; (2) increase the Commission staff’s issuance of the final To mail via USPS, use the following authorized compression at the Vidor environmental impact statement (FEIS) address: Kimberly D. Bose, Secretary, Compressor Station from 17,994 or environmental assessment (EA) for Federal Energy Regulatory horsepower (hp) to 37,101 hp; (3) three this proposal. The filing of an EA in the Commission, 888 First Street NE, new interconnects and appurtenant Commission’s public record for this Washington, DC 20426 facilities adjacent to the MP 33 proceeding or the issuance of a Notice To mail via any other courier, use the Compressor Station; and (4) elimination of Schedule for Environmental Review following address: Kimberly D. Bose, of receipt facilities at the existing will serve to notify federal and state Secretary, Federal Energy Regulatory Texoma delivery interconnect on agencies of the timing for the Commission, 12225 Wilkins Avenue, GPPL’s existing system. Golden Pass completion of all necessary reviews, and Rockville, Maryland 20852 Pipeline estimates the total cost of the the subsequent need to complete all The Commission encourages Project to be $25,521,000. federal authorizations within 90 days of electronic filing of comments (options 1 Golden Pass Pipeline’s application the date of issuance of the Commission and 2 above) and has eFiling staff states that a water quality certificate staff’s FEIS or EA. available to assist you at (202) 502–8258 under section 401 of the Clean Water Public Participation or [email protected]. Act is required for the project from Persons who comment on the Louisiana Department of Environmental There are two ways to become environmental review of this project Quality, Water Quality Division. The involved in the Commission’s review of will be placed on the Commission’s request for certification must be this project: You can file comments on environmental mailing list, and will submitted to the certifying agency and the project, and you can file a motion receive notification when the to the Commission concurrently. Proof to intervene in the proceeding. There is environmental documents (EA or EIS) of the certifying agency’s receipt date no fee or cost for filing comments or are issued for this project and will be must be filed no later than five (5) days intervening. The deadline for filing a notified of meetings associated with the after the request is submitted to the motion to intervene is 5:00 p.m. Eastern Commission’s environmental review certifying agency. Time on [July 14, 2021]. process. In addition to publishing the full text Comments The Commission considers all of this document in the Federal comments received about the project in Register, the Commission provides all Any person wishing to comment on determining the appropriate action to be interested persons an opportunity to the project may do so. Comments may taken. However, the filing of a comment view and/or print the contents of this include statements of support or alone will not serve to make the filer a document via the internet through the objections to the project as a whole or party to the proceeding. To become a Commission’s Home Page (http:// specific aspects of the project. The more party, you must intervene in the ferc.gov) using the ‘‘eLibrary’’ link. specific your comments, the more useful proceeding. For instructions on how to Enter the docket number excluding the they will be. To ensure that your intervene, see below. last three digits in the docket number comments are timely and properly field to access the document. At this recorded, please submit your comments Interventions time, the Commission has suspended on or before July 14, 2021. Any person, which includes access to the Commission’s Public There are three methods you can use individuals, organizations, businesses, Reference Room, due to the to submit your comments to the municipalities, and other entities,3 has proclamation declaring a National Commission. In all instances, please the option to file a motion to intervene Emergency concerning the Novel reference the Project docket number in this proceeding. Only intervenors Coronavirus Disease (COVID–19), issued CP21–458–000 in your submission. have the right to request rehearing of by the President on March 13, 2020. For (1) You may file your comments Commission orders issued in this assistance, contact the Federal Energy electronically by using the eComment proceeding and to subsequently Regulatory Commission at feature, which is located on the challenge the Commission’s orders in [email protected] or call Commission’s website at www.ferc.gov the U.S. Circuit Courts of Appeal. toll-free, (886) 208–3676 or TYY, (202) under the link to Documents and To intervene, you must submit a 502–8659. Filings. Using eComment is an easy motion to intervene to the Commission Any questions regarding the proposed method for interested persons to submit in accordance with Rule 214 of the project should be directed to Kevin M. brief, text-only comments on a project; Commission’s Rules of Practice and Sweeney, Legal Counsel, Golden Pass (2) You may file your comments Procedure 4 and the regulations under Pipeline, LLC, 1717 K Street NW, Suite electronically by using the eFiling the NGA 5 by the intervention deadline 900, Washington, DC 20006, by phone at feature, which is located on the for the project, which is [July 14, 2021]. (202) 609–7709, or by email at Commission’s website (www.ferc.gov) As described further in Rule 214, your [email protected]. under the link to Documents and motion to intervene must state, to the Pursuant to Section 157.9 of the Filings. With eFiling, you can provide extent known, your position regarding Commission’s Rules of Practice and comments in a variety of formats by the proceeding, as well as the your Procedure,2 within 90 days of this attaching them as a file with your interest in the proceeding. [For an Notice the Commission staff will either: submission. New eFiling users must individual, this could include your complete its environmental review and first create an account by clicking on status as a landowner, ratepayer, place it into the Commission’s public ‘‘eRegister.’’ You will be asked to select resident of an impacted community, or record (eLibrary) for this proceeding; or the type of filing you are making; first recreationist. You do not need to have issue a Notice of Schedule for select ‘‘General’’ and then select Environmental Review. If a Notice of ‘‘Comment on a Filing’’; or 3 18 CFR 385.102(d). (3) You can file a paper copy of your 4 18 CFR 385.214. 2 18 CFR (Code of Federal Regulations) 157.9. comments by mailing them to the 5 18 CFR 157.10.

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property directly impacted by the intervention deadline are untimely and information collection request (ICR), project in order to intervene.] For more may be denied. Any late-filed motion to Application for Reference and information about motions to intervene, intervene must show good cause for Equivalent Method Determination (EPA refer to the FERC website at https:// being late and must explain why the ICR Number 0559.14, OMB Control www.ferc.gov/resources/guides/how-to/ time limitation should be waived and Number 2080–0005) to the Office of intervene.asp. provide justification by reference to Management and Budget (OMB) for There are two ways to submit your factors set forth in Rule 214(d) of the review and approval in accordance with motion to intervene. In both instances, Commission’s Rules and Regulations.8 the Paperwork Reduction Act. This is a please reference the Project docket A person obtaining party status will be proposed extension of the ICR, which is number CP21–458–000 in your placed on the service list maintained by currently approved through June 20, submission. the Secretary of the Commission and 2021. Public comments were previously (1) You may file your motion to will receive copies (paper or electronic) requested via the Federal Register on intervene by using the Commission’s of all documents filed by the applicant February 12, 2021 during a 60-day eFiling feature, which is located on the and by all other parties. comment period. This notice allows for Commission’s website (www.ferc.gov) an additional 30 days for public under the link to Documents and Tracking the Proceeding comments. A fuller description of the Filings. New eFiling users must first Throughout the proceeding, ICR is given below, including its create an account by clicking on additional information about the project estimated burden and cost to the public. ‘‘eRegister.’’ You will be asked to select will be available from the Commission’s An agency may not conduct or sponsor the type of filing you are making; first Office of External Affairs, at (866) 208– and a person is not required to respond select ‘‘General’’ and then select FERC, or on the FERC website at to a collection of information unless it ‘‘Intervention.’’ The eFiling feature www.ferc.gov using the ‘‘eLibrary’’ link displays a currently valid OMB control includes a document-less intervention as described above. The eLibrary link number. option; for more information, visit also provides access to the texts of all DATES: Additional comments may be https://www.ferc.gov/docs-filing/efiling/ formal documents issued by the submitted on or before July 30, 2021. document-less-intervention.pdf; or Commission, such as orders, notices, ADDRESSES: Submit your comments, (2) You can file a paper copy of your and rulemakings. referencing Docket ID Number EPA– motion to intervene, along with three In addition, the Commission offers a HQ–ORD–2005–0530 online using copies, by mailing the documents to the free service called eSubscription which www.regulations.gov (our preferred address below. Your motion to allows you to keep track of all formal method) or by mail to: EPA Docket intervene must reference the Project issuances and submittals in specific Center, Environmental Protection docket number CP21–458–000. dockets. This can reduce the amount of Agency, Mail Code 28221T, 1200 To mail via USPS, use the following time you spend researching proceedings Pennsylvania Ave. NW, Washington, DC address: Kimberly D. Bose, Secretary, by automatically providing you with 20460. EPA’s policy is that all Federal Energy Regulatory notification of these filings, document comments received will be included in Commission, 888 First Street NE, summaries, and direct links to the the public docket without change Washington, DC 20426 documents. For more information and to including any personal information To mail via any other courier, use the register, go to www.ferc.gov/docs-filing/ provided, unless the comment includes following address: Kimberly D. Bose, esubscription.asp. profanity, threats, information claimed Secretary, Federal Energy Regulatory Intervention Deadline: 5:00 p.m. to be Confidential Business Information Commission, 12225 Wilkins Avenue, Eastern Time on July 14, 2021. (CBI), or other information whose Rockville, Maryland 20852 Dated: June 23, 2021. disclosure is restricted by statute. Submit written comments and The Commission encourages Debbie-Anne A. Reese, electronic filing of motions to intervene recommendations to OMB for the Deputy Secretary. (option 1 above) and has eFiling staff proposed information collection within available to assist you at (202) 502–8258 [FR Doc. 2021–13934 Filed 6–29–21; 8:45 am] 30 days of publication of this notice to or [email protected]. BILLING CODE 6717–01–P www.reginfo.gov/public/do/PRAMain. Motions to intervene must be served Find this particular information on the applicant either by mail or email collection by selecting ‘‘Currently under at: 1717 K Street NW, Suite 900, ENVIRONMENTAL PROTECTION 30-day Review—Open for Public Washington, DC 20006 or at ksweeney@ AGENCY Comments’’ or by using the search kmsenergylaw.com. Any subsequent [EPA–HQ–ORD–2005–0530; FRL–10025–75– function. submissions by an intervenor must be OMS] FOR FURTHER INFORMATION CONTACT: served on the applicant and all other Robert W. Vanderpool, Environmental parties to the proceeding. Contact Information Collection Request Protection Agency, Air Methods and information for parties can be Submitted to OMB for Review and Characterization Division, Air Quality downloaded from the service list at the Approval; Comment Request; Branch, Mail Drop D205–03, Research eService link on FERC Online. Service Application for Reference and Triangle Park, NC 27711; telephone can be via email with a link to the Equivalent Method Determination number: 919–541–7877; email address: document. (Renewal) [email protected]. All timely, unopposed 6 motions to SUPPLEMENTARY INFORMATION: intervene are automatically granted by AGENCY: Environmental Protection Supporting documents, which explain operation of Rule 214(c)(1).7 Motions to Agency (EPA). ACTION: Notice. in detail the information that the EPA intervene that are filed after the will be collecting, are available in the SUMMARY: The Environmental Protection public docket for this ICR. The docket 6 The applicant has 15 days from the submittal of a motion to intervene to file a written objection to Agency (EPA) has submitted an can be viewed online at the intervention. www.regulations.gov or in person at the 7 18 CFR 385.214(c)(1). 8 18 CFR 385.214(b)(3) and (d). EPA Docket Center, WJC West, Room

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3334, 1301 Constitution Ave. NW, with the ICR currently approved by proposed information collection within Washington, DC. The telephone number OMB. 30 days of publication of this notice to for the Docket Center is 202–566–1744. www.reginfo.gov/public/do/PRAMain. Courtney Kerwin, For additional information about EPA’s Find this particular information public docket, visit http://www.epa.gov/ Director, Regulatory Support Division. collection by selecting ‘‘Currently under dockets. [FR Doc. 2021–13944 Filed 6–29–21; 8:45 am] 30-day Review—Open for Public Abstract: To determine compliance BILLING CODE 6560–50–P Comments’’ or by using the search with the NAAQS, State air monitoring function. agencies are required to use, in their air ENVIRONMENTAL PROTECTION FOR FURTHER INFORMATION CONTACT: quality monitoring networks, air AGENCY Raquel Taveras, Monitoring, Assistance monitoring methods that have been and Media Programs Division, Office of formally designated by the EPA as either [EPA–HQ–OECA–2017–0438; FRL–10025– Compliance, MC–2227A, Environmental reference or equivalent methods under 70–OMS] Protection Agency, 1200 Pennsylvania EPA regulations at 40 CFR part 53. A Information Collection Request Ave. NW, Washington, DC 20460; manufacturer or seller of an air telephone number: (202) 564–9651; fax monitoring method (e.g., an air Submitted to OMB for Review and Approval; Comment Request; Annual number: (202) 564–7083; email address: monitoring sampler or analyzer) that [email protected]. seeks to obtain such EPA designation of Public Water Systems Compliance Report (Renewal) SUPPLEMENTARY INFORMATION: one of its products must carry out Supporting documents, which explain prescribed tests of the method. The test AGENCY: Environmental Protection in detail the information that the EPA results and other information must then Agency (EPA). will be collecting, are available in the be submitted to the EPA in the form of ACTION: Notice. public docket for this ICR. The docket an application for a reference or can be viewed online at equivalent method determination in SUMMARY: The Environmental Protection www.regulations.gov or in person at the accordance with 40 CFR part 53. The Agency (EPA) has submitted an EPA Docket Center, WJC West, Room EPA uses this information, under the information collection request (ICR), 3334, 1301 Constitution Ave. NW, provisions of part 53, to determine Annual Public Water System Washington, DC. The telephone number whether the particular method should Compliance Report (EPA ICR Number for the Docket Center is 202–566–1744. be designated as either a reference or 1812.07, OMB Control Number 2020– For additional information about EPA’s equivalent method. After a method is 0020) to the Office of Management and public docket, visit http://www.epa.gov/ designated, the applicant must also Budget (OMB) for review and approval dockets. maintain records of the names and in accordance with the Paperwork Abstract: Section 1414(c)(3)(A) of the mailing addresses of all ultimate Reduction Act. This is a proposed Safe Drinking Water Act (SDWA) purchasers of all analyzers or samplers extension of the ICR, which is currently requires that each state (a term that sold as designated methods under the approved through June 30, 2021. Public includes states, commonwealths, tribes method designation. If the method comments were previously requested and territories) that has primary designated is a method for fine via the Federal Register on February 22, enforcement authority under the SDWA particulate matter (PM2.5) and coarse 2021 during a 60-day comment period. shall prepare, make readily available to particulate matter (PM10–2.5), the This notice allows for an additional 30 the public, and submit to the applicant must also submit a checklist days for public comments. A fuller Administrator of EPA, an annual report signed by an ISO-certified auditor to description of the ICR is given below, of violations of national primary indicate that the samplers or analyzers including its estimated burden and cost drinking water regulations in the state. sold as part of the designated method to the public. An Agency may not These Annual State Public Water are manufactured in an ISO 9001- conduct or sponsor and a person is not System Compliance Reports are to registered facility. Also, an applicant required to respond to a collection of include violations of maximum must submit a minor application to seek information unless it displays a contaminant levels, treatment approval for any proposed currently valid OMB control number. requirements, variances and modifications to previously designated DATES: Additional comments may be exemptions, and monitoring methods submitted on or before July 30, 2021. requirements determined to be Form Numbers: None. ADDRESSES: Submit your comments, significant by the Administrator after Respondents/affected entities: Private referencing Docket ID Number EPA– consultation with the states. To manufacturers, states. HQ–OECA–2017–0438 online using minimize a state’s burden in preparing Respondent’s obligation to respond: www.regulations.gov (our preferred its annual statutorily required report, Required to obtain the benefit of EPA method), or by mail to: EPA Docket EPA issued guidance that explains what designation under 40 CFR part 53. Center, Environmental Protection Section 1414(c)(3)(A) requires and Estimated number of respondents; 22. Agency, Mail Code 28221T, 1200 provides model language and reporting Pennsylvania Ave. NW, Washington, DC templates. EPA also annually makes Frequency of response: Annual. 20460. EPA’s policy is that all available to the states a computer query Total estimated burden: 7492 (per comments received will be included in that generates for each state (from year). Burden is defined at 5 CFR the public docket without change information states are already separately 1320.03(b). including any personal information required to submit to EPA’s national Total estimated cost: $746,029 (per provided, unless the comment includes database on a quarterly basis) the year), includes $152,152 annualized profanity, threats, information claimed required violations information in a capital or operation & maintenance to be Confidential Business Information table consistent with the reporting costs. (CBI), or other information whose template in EPA’s guidance. Changes in the Estimates: There is no disclosure is restricted by statute. Form Numbers: None. change in the hours in the total Submit written comments and Respondents/affected entities: States estimated respondent burden compared recommendations to OMB for the that have primacy enforcement

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authority and meet the definition of days for public comments. A fuller Each item of information requested is ‘‘state’’ under the SDWA. description of the ICR is given below, based on CDC and industry best practice Respondent’s obligation to respond: including its estimated burden and cost for Contact Tracing. This information is Mandatory Section 1414(c)(3)(A) of to the public. An agency may not necessary to identify individuals in the SDWA. conduct or sponsor and a person is not workforce who are COVID–19 positive Estimated number of respondents: 55 required to respond to a collection of and to notify and trace persons in the (total). information unless it displays a workforce who were in close contact Frequency of response: Annually. currently valid OMB control number. with the COVID–19 positive employee. Total estimated burden: 4,400 hours DATES: Comments must be submitted on Including contractors, interns, grantees, (per year). Burden is defined at 5 CFR or before August 30, 2021. and volunteers, enables EPA to capture 1320.03(b). ADDRESSES: Submit your comments, the total workforce and take appropriate Total estimated cost: $530,000 (per referencing Docket ID Number EPA– action. year), includes $0 annualized capital or HQ–OMS–2020–0454, online using The following information will be operation & maintenance costs. www.regulations.gov (our preferred collected for COVID Contact Testing: Changes in estimates: There is no method) or by mail to: EPA Docket —Name; change of hours in the total estimated Center, Environmental Protection —Work location; respondent burden compared with the Agency, Mail Code 28221T, 1200 —Contact information; ICR currently approved by OMB. This is Pennsylvania Ave. NW, Washington, DC —Supervisor; due to two considerations. First, the 20460. EPA’s policy is that all —Health status; regulations have not changed over the comments received will be included in —Close contacts (as defined by CDC) past three years and are not anticipated the public docket without change when in the office; and to change over the next three years. —Building and floors visited during including any personal information Second, the growth rate for this industry period of possible transmission (as provided, unless the comment includes is very low or non-existent, so there is defined by CDC). profanity, threats, information claimed no significant change in the overall to be Confidential Business Information Form Numbers: None. burden. Since there are no changes in (CBI) or other information whose Respondents/affected entities: EPA’s the regulatory requirements and there is disclosure is restricted by statute. Contract Tracing Program participants, no significant industry growth, there are Submit written comments and including detailees, interns, volunteers, also no changes in the capital/startup or recommendations to OMB for the grantee recipients and contractors. operation and maintenance (O&M) proposed information collection within Respondent’s obligation to respond: costs. 30 days of publication of this notice to Voluntary. Courtney Kerwin, www.reginfo.gov/public/do/PRAMain. Estimated number of respondents: 250 (total). Director, Regulatory Support Division. Find this particular information collection by selecting ‘‘Currently under Frequency of response: Once. [FR Doc. 2021–13945 Filed 6–29–21; 8:45 am] Total estimated burden: 63 hours (per BILLING CODE 6560–50–P 30-day Review—Open for Public Comments’’ or by using the search year). Burden is defined at 5 CFR function. 1320.03(b). Total estimated cost: $0 (per year), ENVIRONMENTAL PROTECTION FOR FURTHER INFORMATION CONTACT: which includes annualized capital or AGENCY Daniel Coogan, Office of Resource and operation & maintenance costs. [EPA–HQ–OMS–2020–0454; FRL–10025–79– Business Operations, Office of Mission Changes in the Estimates: There is no OMS] Support, Environmental Protection change in the total estimated respondent Agency; telephone number: 202–564– burden compared with the ICR currently Information Collection Request 1862; email address: coogan.daniel@ approved by OMB. Submitted to OMB for Review and epa.gov. Approval; Comment Request; Public Courtney Kerwin, SUPPLEMENTARY INFORMATION: Health Emergency Workplace Director, Regulatory Support Division. Supporting documents which explain in Response System (Renewal) [FR Doc. 2021–13947 Filed 6–29–21; 8:45 am] detail the information that the EPA will BILLING CODE 6560–50–P AGENCY: Environmental Protection be collecting are available in the public Agency (EPA). docket for this ICR. The docket can be ACTION: Notice. viewed online at www.regulations.gov ENVIRONMENTAL PROTECTION or in person at the EPA Docket Center, AGENCY SUMMARY: The Environmental Protection WJC West, Room 3334, 1301 Agency (EPA) has submitted an Constitution Ave. NW, Washington, DC. [FRL–10018–65–OMS] information collection request (ICR), The telephone number for the Docket Privacy Act of 1974; System of Public Health Emergency Workplace Center is 202–566–1744. For additional Records Response System (EPA ICR Number information about EPA’s public docket, 2676.02, OMB Control Number 2030– visit http://www.epa.gov/dockets. AGENCY: Office of Mission Support 0049) to the Office of Management and Abstract: Because of the substantial (OMS), Environmental Protection Budget (OMB) for review and approval risk to life, safety, or health of the Agency (EPA). in accordance with the Paperwork workforce and the public, EPA requests ACTION: Notice of a new system of Reduction Act. This is a proposed an emergency approval to collect the records. extension of the ICR, which is currently necessary information from Federal approved through June 30, 2021. Public employees, detailees, interns, SUMMARY: The U.S. Environmental comments were previously requested, volunteers, grantee recipients and Protection Agency’s (EPA), Office of via the Federal Register, on May 12, contractors that perform work in EPA Mission Support (OMS) is giving notice 2020 during a 60-day comment period. facilities to implement an effective that it proposes to create a new system This notice allows for an additional 30 COVID–19 Contact Tracing program. of records pursuant to the provisions of

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the Privacy Act of 1974. The Public comment. If the EPA cannot read your emergency, or other circumstances Health Emergency Workplace Response comment due to technical difficulties constituting a public health emergency). System is being created to collect and cannot contact you for clarification, EPA–89 will allow the Agency to workplace safety and personnel the EPA may not be able to consider develop and institute safety measures in information in response to a public your comment. Electronic files should response to public health emergency health emergency such as a pandemic or avoid the use of special characters, any contaminants (e.g., a pathogen or epidemic. form of encryption, and be free of any chemical) as needed, which may DATES: Persons wishing to comment on defects or viruses. For additional include: this system of records notice must do so information about the EPA public • Contact Tracing—identification, by July 30, 2021. New routine uses for docket, visit the EPA Docket Center monitoring, and support of an affected this new system of records will be homepage at http://www.epa.gov/ individual (an individual in an EPA effective July 30, 2021. epahome/dockets.htm. location with confirmed or probable ADDRESSES: Submit your comments, Docket: All documents in the docket exposure to a public health emergency identified by Docket ID No. EPA–HQ– are listed in the www.regulations.gov contaminant), and identification and OMS–2020–0454, by one of the index. Although listed in the index, contact of a potentially affected following methods: some information is not publicly individual (an individual who was in Regulations.gov: www.regulations.gov. available, e.g., CUI or other information contact with an affected individual or Follow the online instructions for for which disclosure is restricted by exposed to a public health emergency statute. Certain other material, such as contaminant while in an EPA location); submitting comments. • Email: [email protected]. copyrighted material, will be publicly Medical Screening—examination of Fax: 202–566–1752. available only in hard copy. Publicly individuals entering an EPA location for Mail: OMS Docket, Environmental available docket materials are available symptoms or other indications Protection Agency, Mail Code: 2822T, either electronically in consistent with exposure to a public www.regulations.gov or in hard copy at health emergency contaminant; and 1200 Pennsylvania Ave. NW, • Washington, DC 20460. the OMS Docket, EPA/DC, WJC West Workplace Access Tracking and Hand Delivery: OMS Docket, EPA/DC, Building, Room 3334, 1301 Constitution Planning—planning and tracking of WJC West Building, Room 3334, 1301 Ave. NW, Washington, DC 20460. The location and time of individuals in EPA Constitution Ave. NW, Washington, DC Public Reading Room is open from 8:30 locations for purposes of contact tracing, 20460. Such deliveries are only a.m. to 4:30 p.m., Monday through social distancing, and/or management of accepted during the Docket’s normal Friday excluding legal holidays. The exposure to public health emergency hours of operation, and special telephone number for the Public contaminants within EPA locations. Reading Room is (202) 566–1744, and arrangements should be made for SYSTEM NAME AND NUMBER: deliveries of boxed information. the telephone number for the OMS Docket is (202) 566–1752. Public Health Emergency Workplace Instructions: Direct your comments to Response System, EPA–89. Docket ID No. EPA–HQ–OMS–2020– Out of an abundance of caution for 0454. The EPA policy is that all members of the public and our staff, the SECURITY CLASSIFICATION: comments received will be included in EPA Docket Center and Reading Room Unclassified. the public docket without change and are closed to the public, with limited may be made available online at exceptions, to reduce the risk of SYSTEM LOCATION: www.regulations.gov, including any transmitting COVID–19.Our Docket Records are maintained at the EPA personal information provided, unless Center staff will continue to provide Headquarters, 1301 Constitution Ave. the comment includes information remote customer service via email, NW, Washington, DC 20460, regional claimed to be Controlled Unclassified phone, and webform. We encourage the offices, field offices and laboratories. public to submit comments via https:// Information (CUI) or other information SYSTEM MANAGER(S): for which disclosure is restricted by www.regulations.gov/ or email, as there statute. Do not submit information that may be a delay in processing mail and Willie J. Abney, Division Director of you consider to be CUI or otherwise faxes. Hand deliveries and couriers may Desktop Support Services Division protected through www.regulations.gov. be received by scheduled appointment (DSSD), Office of Mission Support, 1301 The www.regulations.gov website is an only. For further information on EPA Constitution Ave. NW, Washington, DC ‘‘anonymous access’’ system for EPA, Docket Center services and the current 20460, Email Address: Abney.Willie@ which means the EPA will not know status, please visit us online at https:// epa.gov, Phone Number: 202–566–1366. www.epa.gov/dockets. your identity or contact information AUTHORITY FOR MAINTENANCE OF THE SYSTEM: FOR FURTHER INFORMATION CONTACT: unless you provide it in the body of Jill 5 U.S.C. 6329c, 5 U.S.C. 7902, 29 your comment. Each agency determines Smink at [email protected], (202) 540– U.S.C. 654, 29 U.S.C. 668, 42 U.S.C. submission requirements within their 9196. 247d, 44 U.S.C. 3101, 42 U.S.C. 12101, own internal processes and standards. SUPPLEMENTARY INFORMATION: EPA is 5 CFR part 339, 29 CFR part 1602, EPA has no requirement of personal creating the Public Health Emergency Executive Order 12196, Occupational information. If you send an email Workplace Response System, EPA–89, safety and health programs for Federal comment directly to the EPA without to support the Agency’s ability to employees (Feb. 26, 1980), OMB going through www.regulations.gov your provide a safe and healthy working Memorandum M–20–23 Aligning email address will be automatically environment in EPA locations (i.e., Federal Agency Operations with the captured and included as part of the locations where the Agency is National Guidelines for Opening Up comment that is placed in the public conducting official business) during a America Again (Apr. 20, 2020). docket and made available on the public health emergency (e.g., a internet. If you submit an electronic Presidential declaration of a national PURPOSE(S) OF THE SYSTEM: comment, the EPA recommends that public health emergency, U.S. EPA proposes to establish a new you include your name and other Department of Health and Human system of records to manage the contact information in the body of your Services declaration of a public health Agency’s planning and response to a

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public health emergency in EPA data. The system also collects Sensitive implementing a statute, rule, regulation, locations. EPA intends to collect Personal Identifiable Information (SPII) or order, if the information is relevant information in the system to assist EPA such as medical information, including to a violation or potential violation of with maintaining safe and healthy but not limited to, dates and results of civil or criminal law or regulation workplaces, to protect individuals in any: Expected or confirmed medical within the jurisdiction of the receiving EPA locations from risks associated testing (e.g., temperature readings, viral entity. with a public health emergency, to plan or bacterial exposure testing, antibody B. Disclosure Incident to Requesting and respond to workplace and testing) performed in relation to a public Information. personnel flexibilities needed during a health emergency; symptoms consistent Information may be disclosed to any public health emergency, to facilitate with a public health emergency; source from which additional EPA’s cooperation with public health potential or actual exposure to a public information is requested (to the extent authorities, and assist with contact health emergency contaminant; necessary to identify the individual, tracing. Contact tracing is defined as the immunizations and vaccination inform the source of the purpose of the identification, monitoring, and support information; or other medical history request, and to identify the type of of an affected individual (an individual related to the treatment of a public information requested,) when necessary in an EPA location with confirmed or health emergency contaminant. The to obtain information relevant to an probable exposure to a public health system may also collect information, agency decision concerning retention of emergency contaminant), and including but not limited to, on: Recent an employee or other personnel action identification and contact of a travel details (including dates, locations, (other than hiring,) retention of a potentially affected individual (an carriers); EPA staff certifications relating security clearance, the letting of a individual who was in contact with an to dependent care obligations or contract, or the issuance or retention of affected individual or exposed to a whether EPA staff are in a high-risk a grant, or other benefit. public health emergency contaminant category regarding a public health C. Disclosure to Congressional Offices. while in an EPA location). emergency contaminant; name and Information may be disclosed to a contact information of EPA staff congressional office from the record of CATEGORIES OF INDIVIDUALS COVERED BY THE assigned to track and respond to an an individual in response to an inquiry SYSTEM: individual’s case; date and time of from the congressional office made at Categories of individuals covered by information entry; contents of the request of the individual. this system include EPA employees. communications between assigned EPA D. Disclosure to Department of The system also covers individuals staff and affected individuals; and case Justice. working in EPA facilities or on official status. Information may be disclosed to the EPA business, including: EPA Department of Justice, or in a contractors, non-EPA government RECORD SOURCE CATEGORIES: proceeding before a court, adjudicative personnel or contractors, interns, The information in this system is body, or other administrative body grantees, fellows, and volunteers. Other collected from the individual, the before which the Agency is authorized categories of individuals covered by the individual’s manager, and from the to appear, when: system include: Visitors to EPA individual’s emergency contact. When • The Agency, or any component facilities; and potentially affected necessary, for non-EPA personnel, thereof; individuals at EPA locations or information may also be collected from • Any employee of the Agency in his otherwise present during official EPA the individual’s employer, grantee or her official capacity; • business. The system also covers organization, other federal agencies, or Any employee of the Agency in his individuals listed as emergency contacts similar designated external points of or her individual capacity where the for such individuals. contact. Information is also collected Department of Justice or the Agency have agreed to represent the employee; CATEGORIES OF RECORDS IN THE SYSTEM: from security systems monitoring access to Agency facilities (such as video or Information collected in the system surveillance and key card logs), human The United States, if the Agency may include but is not limited to: resources systems, emergency determines that litigation is likely to Contact information of the individuals notification systems, and federal, state, affect the Agency or any of its (which may include name, address; and local agencies assisting with the components, is a party to litigation or phone number; email address); EPA response to a public health emergency. has an interest in such litigation, and LAN ID; EPA employee number; EPA the use of such records by the staff office (e.g., organization chart ROUTINE USES OF RECORDS MAINTAINED IN THE Department of Justice or the Agency is structure) and supervisor contact SYSTEM, INCLUDING CATEGORIES OF USERS AND deemed by the Agency to be relevant information (which may include name, PURPOSES OF SUCH USES: and necessary to the litigation. phone number, and email address); The following routine uses apply to E. Disclosure to the National emergency contact information (which this system because the use of the Archives. may include name, phone number, and record is necessary for the efficient Information may be disclosed to the email address); and Agency facility or conduct of government operations. The National Archives and Records location access information that routine uses are related to and Administration in records management includes, but is not limited to, the dates compatible with the original purpose for inspections. when the affected individual visited the which the information was collected. F. Disclosure to Contractors, Grantees, facility or location, the areas that they Routine uses I and J are required under and Others. visited within the facility (e.g., entrance OMB M–17–12. Information may be disclosed to used, office and cubicle number, shared A. Disclosure for Law Enforcement contractors, grantees, consultants, or spaces used) or at the location, the Purposes. volunteers performing or working on a duration of time spent in the facility or Information may be disclosed to the contract, service, grant, cooperative location, the individuals they came in appropriate Federal, State, local, tribal, agreement, job, or other activity for the contact with, and security systems or foreign agency responsible for Agency and who have a need to have monitoring data; and facility cleaning investigating, prosecuting, enforcing, or access to the information in the

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performance of their duties or activities remedying the risk of harm to identification and contact of a for the Agency. individuals, the recipient agency or potentially affected individual (an G. Disclosures for Administrative entity (including its information individual who was in contact with an Claims, Complaints and Appeals. systems, programs, and operations), the affected individual or exposed to a Information from this system of Federal Government, or national public health emergency contaminant records may be disclosed to an security, resulting from a suspected or while in an EPA location), the same authorized appeal grievance examiner, confirmed breach. definition as above in Supplemental formal complaints examiner, equal K. Disclosure to a Public Health Information. employment opportunity investigator, Authority. arbitrator or other person properly To Federal agencies such as the POLICIES AND PRACTICES FOR STORAGE OF engaged in investigation or settlement of Department of Health and Human RECORDS: an administrative grievance, complaint, Services (HHS), State and local health These records are maintained claim, or appeal filed by an employee, departments, and other public health or electronically on computer storage but only to the extent that the cooperating medical authorities in devices such as computer tapes and information is relevant and necessary to connection with program activities and disks, or on paper. The computer the proceeding. Agencies that may related collaborative efforts to deal more storage devices are managed by the EPA, obtain information under this routine effectively with exposures to Office of Mission Support, 1301 use include, but are not limited to, the communicable diseases, and to satisfy Constitution Ave. NW, Washington, DC Office of Personnel Management, Office mandatory reporting requirements when 20460. Backup files will be maintained of Special Counsel, Merit Systems applicable. at a disaster recovery site. Computer Protection Board, Federal Labor L. Disclosure to Governmental records are maintained in a secure Relations Authority, Equal Employment Organization. password-protected environment. Opportunity Commission, and Office of To appropriate federal, state, local, Access to computer records is limited to Government Ethics. tribal, or foreign governmental agencies those who have a need to know. H. Disclosure in Connection With or multilateral governmental Permission level assignments will allow Litigation. organizations, to the extent permitted by users access only to those functions for Information from this system of law, and in consultation with legal which they are authorized. All records records may be disclosed in connection counsel, for the purpose of protecting are maintained in secure, access- with litigation or settlement discussions the vital interests of a data subject or controlled areas or buildings. regarding claims by or against the EPA, other persons, including to assist such POLICIES AND PRACTICES FOR RETRIEVAL OF including public filing with a court, to agencies or organizations in preventing RECORDS: the extent that disclosure of the exposure to or transmission of a Records may be retrieved by any data information is relevant and necessary to communicable or quarantinable disease category in the system (e.g., name, the litigation or discussions and except or to combat other significant public office, supervisor, date of medical where court orders are otherwise health threats. required under section (b)(11) of the M. Disclosure to Emergency Contacts. testing, assigned EPA staff). Records are Privacy Act of 1974, 5 U.S.C. To a potentially affected individual’s only retrievable by authorized EPA staff 552a(b)(11). emergency contact for purposes of (who are EPA employees and/or I. Disclosure to Persons or Entities in locating the individual to communicate contractors) and retrieval methods are Response to an Actual or Suspected that they may have been exposed to a limited by permission levels as Breach of Personally Identifiable public health emergency contaminant in described below under Technical Information. an EPA location or while otherwise Safeguards. To appropriate agencies, entities, and present during official EPA business. POLICIES AND PRACTICES FOR RETENTION AND persons when (1) the Agency suspects N. Disclosure for Contact Tracing. DISPOSAL OF RECORDS: or has confirmed that there has been a To affected individuals and/or EPA will retain and dispose of these breach of the system of records, (2) the potentially affected individuals, and/or, records in accordance with the National Agency has determined that as a result when needed, to the (potentially) Archives and Records Administration of the suspected or confirmed breach affected individual’s employer, grantee General Records Schedule. EPA–89 there is a risk of harm to individuals, organization, federal agency to whom follows the EPA Records Policy for the Agency (including its information the individual is contracted, or other retention and disposal, per schedule systems, programs, and operations), the similar designated external points of 1012 (Information and Technology Federal Government, or national contact, information necessary for Management) and schedule 1049 security; and (3) the disclosure made to contact tracing. For example: Informing (Information Access and Protection such agencies, entities, and persons is an individual that they were exposed to Records). The schedule provides reasonably necessary to assist in an affected individual or public health disposal authorization for electronic connection with the Agency’s efforts to emergency contaminant in an EPA files and hard copy printouts created to respond to the suspected or confirmed location or while otherwise present monitor system usage, including log-in breach or to prevent, minimize, or during EPA business, and the timing files, audit trail files, and system usage remedy such harm. and location of the exposure; or files. Records in EPA–89 will be deleted J. Disclosure To Assist Another contacting the employer of a potentially or destroyed when the Agency Agency in Its Efforts To Respond to a affected individual in the course of determines they are no longer needed Breach. trying to contact the potentially affected for administrative, legal, audit, or other To another Federal agency or Federal individual themselves. purposes. entity, when the Agency determines that Contact tracing is defined as: information from this system of records Identification, monitoring, and support ADMINISTRATIVE, TECHNICAL, AND PHYSICAL is reasonably necessary to assist the of an affected individual (an individual SAFEGUARDS: recipient agency or entity in (1) in an EPA location with confirmed or Security controls used to protect PII responding to a suspected or confirmed probable exposure to a public health and SPII in EPA–89 are commensurate breach or (2) preventing, minimizing, or emergency contaminant), and with those required for an information

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system rated moderate for HISTORY: FOR FURTHER INFORMATION CONTACT: confidentiality, integrity, and None. Shirley Miller or Dipti Singh, availability, as prescribed in NIST Information Exchange Services Division, Vaughn Noga, Special Publication, 800–53, Office of Information Management, ‘‘Recommended Security Controls for Senior Agency Official for Privacy. Office of Mission Support (2823T), Federal Information Systems,’’ Revision [FR Doc. 2021–13989 Filed 6–29–21; 8:45 am] Environmental Protection Agency, 1200 4. BILLING CODE 6560–50–P Pennsylvania Ave. NW, Washington, DC Administrative Safeguards. 20460; telephone number: 202–566– 2908 or 202–566–0739, respectively; EPA staff must complete annual ENVIRONMENTAL PROTECTION email address: [email protected] or agency training for Information Security AGENCY and Privacy. EPA instructs staff to lock [email protected]. and secure their computers when [EPA–HQ–OEI–2011–0096; FRL–10025–76– SUPPLEMENTARY INFORMATION: unattended. OMS] Supporting documents, which explain Technical Safeguards. Information Collection Request in detail the information that the EPA The system administrator, an EPA Submitted to OMB for Review and will be collecting, are available in the staff member, authorizes appropriate Approval; Comment Request; Cross- public docket for this ICR. The docket permission levels for authorized EPA Media Electronic Reporting Rule can be viewed online at staff. Permission level assignments (Renewal) www.regulations.gov or in person at the allow authorized users to access only EPA Docket Center, WJC West, Room those system functions and records AGENCY: Environmental Protection 3334, 1301 Constitution Ave. NW, specific to their Agency work need. EPA Agency (EPA). Washington, DC. The telephone number also has technical security measures ACTION: Notice. for the Docket Center is 202–566–1744. including restrictions on computer For additional information about EPA’s access to authorized individuals and SUMMARY: The Environmental Protection public docket, visit http://www.epa.gov/ required use of a personal identity Agency (EPA) has submitted an dockets. verification (PIV) card and password. information collection request (ICR), Abstract: The scope of this ICR is the Physical Safeguards. Cross-Media Electronic Reporting Rule electronic reporting components of (EPA ICR Number 2002.08, OMB EPA equipment used for EPA–89 is CROMERR, which is designed to: (i) Control Number 2025–0003) to the located in the Federal cloud space not Allow EPA to comply with the Office of Management and Budget connected to other federal systems. Government Paperwork Elimination Act (OMB) for review and approval in Only authorized employees have access of 1998; (ii) provide a uniform, accordance with the Paperwork to this information in the Federal space. technology-neutral framework for Reduction Act . This is a proposed electronic reporting across all EPA RECORD ACCESS PROCEDURES: extension of the ICR, which is currently programs; (iii) allow EPA programs to Individuals seeking access to approved through August 31, 2021. offer electronic reporting as they information in this system of records Public comments were previously become ready for CROMERRR; and (iv) about themselves are required to requested via the Federal Register on provide states with a streamlined provide adequate identification (e.g., January 15, 2021, during a 60-day process—together with a uniform set of driver’s license, military identification comment period. This notice allows for standards—for approval of their card, employee badge or identification an additional 30 days for public electronic reporting provisions for all card). Additional identity verification comments. A fuller description of the their EPA-authorized programs. procedures may be required, as ICR is given below, including its Responses to the collection of warranted. Requests must meet the estimated burden and cost to the public. information are voluntary. In order to requirements of EPA regulations that An Agency may not conduct or sponsor accommodate CBI, the information implement the Privacy Act of 1974, at and a person is not required to respond collected must be in accordance with 40 CFR part 16. to a collection of information unless it the confidentiality regulations set forth displays a currently valid OMB control in 40 CFR part 2, subpart B. CONTESTING RECORDS PROCEDURES: number. Additionally, EPA will ensure that the Requests for correction or amendment DATES: Additional comments may be information collection procedures must identify the record to be changed submitted on or before July 30, 2021. comply with the Privacy Act of 1974 and the corrective action sought. ADDRESSES: Submit your comments to and the OMB Circular 108. Complete EPA Privacy Act procedures EPA, referencing Docket ID No. EPA– Form Numbers: None. are described in EPA’s Privacy Act HQ–OEI–2011–0096, online using Respondents/affected entities: Entities regulations at 40 CFR part 16. www.regulations.gov (our preferred that report electronically to EPA and method), [email protected], or by mail state, tribal, or local government NOTIFICATION PROCEDURES: to: EPA Docket Center, Environmental authorized programs; and state, tribal, Any individual who wishes to know Protection Agency, Mail Code 28221T, and local government authorized whether this system of records contains 1200 Pennsylvania Ave. NW, programs implementing electronic a record about themselves, and to obtain Washington, DC 20460. EPA’s policy is reporting. a copy of any such record(s), should that all comments received will be Respondent’s obligation to respond: make a written request to the Attn: included in the public docket without Voluntary, required to obtain or retain a Agency Privacy Officer, MC 2831T, change including any personal benefit (Cross-Media Electronic 1200 Pennsylvania Ave. NW, information provided, unless the Reporting Rule (CROMERR) established Washington, DC 20460, privacy@ comment includes profanity, threats, to ensure compliance with the epa.gov. information claimed to be Confidential Government Paperwork Elimination Act Business Information (CBI), or other (GPEA)). EXEMPTIONS PROMULGATED FOR THE SYSTEM: information whose disclosure is Estimated number of respondents: None. restricted by statute. 132,724 (total).

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Frequency of response: On occasion. ENVIRONMENTAL PROTECTION FOR FURTHER INFORMATION CONTACT: Tara Total estimated burden: 81,985 hours AGENCY O’Hare, WaterSense Branch, Water (per year). Burden is defined at 5 CFR Infrastructure Division, Office of 1320.03(b). [EPA–HQ–OW–2006–0408; FRL–10025–72– Wastewater Management, Office of OMS] Water, (Mail Code 4204M), Total estimated cost: $4,710,366 (per Environmental Protection Agency, 1200 year), including $3,620,310 in Information Collection Request Pennsylvania Ave. NW, Washington, DC annualized labor costs and $1,090,056 Submitted to OMB for Review and 20460; telephone number: 202–564– in annualized capital or operation & Approval; Comment Request; EPA’s 8836; email address: ohare.tara@ maintenance costs. WaterSense Program (Renewal) epa.gov. Changes in the Estimates: There is a AGENCY: Environmental Protection SUPPLEMENTARY INFORMATION: decrease of 4,569 hours in the total Agency (EPA). Supporting documents, which explain estimated respondent burden compared in detail the information that the EPA ACTION: with the ICR currently approved by Notice. will be collecting, are available in the OMB. The decrease in respondent SUMMARY: The Environmental Protection public docket for this ICR. The docket burden can be attributed primarily to Agency (EPA) has submitted an can be viewed online at two reasons. First, over the past three information collection request (ICR), www.regulations.gov or in person at the years, the Agency made improvements EPA’s WaterSense Program (EPA ICR EPA Docket Center, WJC West, Room to CDX to enhance efficiencies in end- Number 2233.08, OMB Control Number 3334, 1301 Constitution Ave. NW, user registration, integration, and Help 2040–0272) to the Office of Management Washington, DC. The telephone number Desk support. These improvements and Budget (OMB) for review and for the Docket Center is 202–566–1744. resulted in reduced burden to approval in accordance with the For additional information about EPA’s respondents. Second, through Paperwork Reduction Act. This is a public docket, visit http://www.epa.gov/ technological improvements, the proposed extension of the ICR, which is dockets. Agency now is able to obtain real world currently approved through June 30, Abstract: WaterSense is a voluntary program designed to promote use of data via Google Analytics on the 2021. Public comments were previously water-efficient products and services via frequency and amount of time a requested via the Federal Register on a common label. The label provides an respondent spends accessing CDX web February 24, 2021 during a 60-day comment period. This notice allows for incentive for manufacturers and pages and features. Based on this builders to design, produce, and market information, EPA has revised the an additional 30 days for public comments. A fuller description of the water-efficient products and homes. burden estimates associated with some Data collected under this ICR will assist of the CDX registration and identity ICR is given below, including its estimated burden and cost to the public. WaterSense in demonstrating results proofing activities. The Agency believes and carrying out evaluation efforts to that these revised burden estimates An agency may not conduct or sponsor and a person is not required to respond ensure continual program improvement. more accurately reflect the resources to a collection of information unless it Shipment and sales data submitted by spent by respondents conducting displays a currently valid OMB control WaterSense manufacturer and retailer/ electronic reporting activities under number. distributor partners are collected as CROMERR. Note that the decrease in confidential business information (CBI) respondent burden described above was DATES: Additional comments may be using the procedures outlined in the offset by an almost two-fold increase in submitted on or before July 30, 2021. WaterSense CBI security plan under the the number of respondents that report to ADDRESSES: Submit your comments to Clean Water Act. state, tribal, and local electronic EPA, referencing Docket ID No. EPA– As a terms of clearance for the document receiving systems. In HQ–OW–2006–0408 online using previous ICR, EPA was required to developing this ICR, EPA revised the www.regulations.gov (our preferred address comments on an April 2020 approach used to estimate the number method), or by mail to: EPA Docket Federal Register notice (85 FR 20268) of these reporters. The revised approach Center, Environmental Protection that sought input on whether and how Agency, Mail Code 28221T, 1200 uses shared CROMERR services solution the program could better understand Pennsylvania Ave. NW, Washington, DC data to supplement estimates obtained and collect information on consumer 20460. EPA’s policy is that all based on analysis of respondent satisfaction with labeled products. As comments received will be included in summarized in the supporting universe growth rates in EPA program the public docket without change statement, there was no support for ICRs, which was the previous approach including any personal information conducting a survey or study on used to estimate number of reporters. provided, unless the comment includes consumer satisfaction for use in future The overall change in respondent profanity, threats, information claimed product reviews. There was, however, burden is considered an ‘‘adjustment,’’ to be Confidential Business Information support for a general survey to provide because it results from changes in the (CBI), or other information whose information to improve awareness of the respondent universe and hourly burden disclosure is restricted by statute. WaterSense label, which is covered estimates used in the development of Submit written comments and under this ICR. the ICR. recommendations to OMB for the proposed information collection within Form Numbers Courtney Kerwin, 30 days of publication of this notice to • Partnership Agreements: Builders Director, Regulatory Support Division. www.reginfo.gov/public/do/PRAMain. 6100–19; Licensed Certification [FR Doc. 2021–13950 Filed 6–29–21; 8:45 am] Find this particular information Providers 6100–20; Manufacturers BILLING CODE 6560–50–P collection by selecting ‘‘Currently under 6100–13; Professional Certifying 30-day Review—Open for Public Organizations 6100–07; Promotional Comments’’ or by using the search partners 6100–06; Retailers/ function. distributors 6100–12

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• Application for Professional Changes in the estimates: There is no Advisory Committee, the SAB conducts Certifying Organization Approval change in burden compared with the business in accordance with the Federal 6100–X3 ICR currently approved by OMB. Advisory Committee Act (FACA) (5 • Annual Reporting Forms: Builders U.S.C. app. 2) and related regulations. Courtney Kerwin, 6100–09; Professional Certifying The SAB Staff Office is forming an Organizations 6100–09; Promotional Director, Regulatory Support Division. expert panel, the SAB PFAS Review partners 6100–09 [FR Doc. 2021–13946 Filed 6–29–21; 8:45 am] Panel, under the auspices of the • Annual Reporting Forms—Online and BILLING CODE 6560–50–P Chartered SAB. The SAB PFAS Review Hard-copy Confidential Business Panel will provide advice through the Information (CBI) Forms: Plumbing chartered SAB. The SAB and the SAB ENVIRONMENTAL PROTECTION Manufacturers 6100–09; Non- PFAS Review Panel will comply with AGENCY plumbing Manufacturers 6100–09; the provisions of FACA and all Retailers/Distributors 6100–09 [FRL–10025–40–OP] appropriate SAB Staff Office procedural • Provider Quarterly Reporting Form policies. 6100–09 Request for Nominations for the The SAB PFAS Review Panel will • Award Application Forms: Builders Science Advisory Board; PFAS Review conduct the review of draft EPA 6100–17; Licensed Certification Panel documents that are being developed to support EPA’s National Primary Providers 6100–17; Manufacturers AGENCY: Environmental Protection Drinking Water Rulemaking for per- and 6100–17; Professional Certifying Agency. Organizations 6100–17; Promotional polyfluoroalkyl substances (PFAS) ACTION: Notice. Partners 6100–17; Retailers/ prepared by the EPA’s Office of Ground Distributors 6100–17 SUMMARY: The Environmental Protection Water and Drinking Water (OGWDW) • Consumer Awareness Survey 6100– Agency (EPA) Science Advisory Board and Office of Science and Technology X2 (SAB) Staff Office requests public (OST). EPA has made final determinations to Respondents/affected entities: nominations of scientific experts to form a Panel to review draft EPA documents regulate two contaminants, Respondents will consist of WaterSense perfluorooctanesulfonic acid (PFOS) partners and participants in the that are being developed to support EPA’s National Primary Drinking Water and perfluorooctanoic acid (PFOA). EPA consumer survey. WaterSense partners is currently moving forward to include product manufacturers; Rulemaking for per- and polyfluoroalkyl substances (PFAS). These draft implement the national primary professional certifying organizations; drinking water regulation development retailers; distributors; utilities; federal, documents will describe EPA’s prepared analyses of health effects data that will process for PFAS. The Regulatory state, and local governments; home Determinations outline avenues that the builders; licensed certification inform the derivation of proposed Maximum Contaminant Level Goals for agency is considering to further evaluate providers; and non-governmental additional PFAS chemicals and provide organizations (NGOs). perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA). flexibility for the agency to consider Respondent’s obligation to respond: groups of PFAS as supported by the best Voluntary. Additionally, the documents will include elements from EPA’s available science. Estimated number of respondents: Request for Nominations: The SAB assessment of the health risk reduction 2,561 (total). Staff Office is seeking nominations of benefits of potential reductions in Frequency of response: Once a nationally and internationally drinking water concentrations of PFOA prospective partner organization recognized scientists with demonstrated reviews WaterSense materials and and PFOS for targeted health endpoints. expertise in the following disciplines: decides to join the program, it will The documents will also include a Toxicology, specifically: Reproductive/ submit the appropriate Partnership framework for estimating health risks developmental, hepatic, immunology Agreement for its partnership category associated with PFAS mixtures. and neurotoxicology; epidemiology with (this form is only submitted once). DATES: Nominations should be expertise in: Immunology, Professional Certifying Organizations submitted by July 21, 2021 per the endocrinology, reproductive/ must include additional documentation instructions below. developmental and cardiology; to begin their partnership by completing FOR FURTHER INFORMATION CONTACT: Any physiologically-based pharmacokinetic an Application for Professional member of the public wishing further (PBPK) modeling; physician/clinician Certifying Organization Approval (this information regarding this notice and with a focus on cardiology; risk form is only submitted once). Each year, request for nominations may contact Dr. assessment; toxicity of chemical EPA also asks partners to submit an Suhair Shallal, Designated Federal mixtures; economist with expertise in Annual Reporting Form and Awards Officer (DFO), EPA Science Advisory health related benefit cost analysis and Application (voluntarily at the partner’s Board via telephone/voice mail (202) valuing avoided adverse health discretion). Licensed certification 564–2057, or email at shallal.suhair@ outcomes; dose response relationships providers for WaterSense-labeled new epa.gov. General information in economic models. homes are asked to submit a Provider concerning the EPA SAB can be found Process and Deadline for Submitting Quarterly Reporting Form four times at the EPA SAB website at http:// Nominations: Any interested person or each year. EPA also may conduct two www.epa.gov/sab. organization may nominate qualified Consumer Awareness Surveys over the SUPPLEMENTARY INFORMATION: individuals in the areas of expertise three-year period of the ICR. Background: The SAB (42 U.S.C. described above for possible service on Total estimated burden: 3,212 hours 4365) is a chartered Federal Advisory the SAB Panel. Individuals may self- per year. Burden is defined at 5 CFR Committee that provides independent nominate. Nominations should be 1320.03(b). scientific and technical peer review, submitted in electronic format Total estimated cost: $293,189 per advice, and recommendations to the (preferred) following the instructions for year, includes $905 annualized EPA Administrator on the technical ‘‘Nominating Experts to Advisory Panels operation & maintenance costs. basis for EPA actions. As a Federal and Ad Hoc Committees Being

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Formed,’’ provided on the SAB website conflicts of interest; (d) absence of an their corresponding titles, EPA ICR (see the ‘‘Nomination of Experts’’ link appearance of a loss of impartiality; (e) numbers, OMB Control numbers, and under ‘‘Current Activities’’ at http:// skills working in committees, related docket identification (ID) www.epa.gov/sab). To be considered, subcommittees and advisory panels; numbers. Before submitting these ICRs nominations should include the and, (f) for the panel as a whole, to OMB for review and approval, EPA information requested below. EPA diversity of expertise and scientific is soliciting comments on specific values and welcomes diversity. All points of view. aspects of the information collection qualified candidates are encouraged to The SAB Staff Office’s evaluation of activities that are summarized in this apply regardless of sex, race, disability an absence of financial conflicts of document. The ICRs and accompanying or ethnicity. Nominations should be interest will include a review of the material are available for public review submitted in time to arrive no later than ‘‘Confidential Financial Disclosure and comment in the relevant dockets July 21, 2021. Form for Environmental Protection identified in this document for the ICR. The following information should be Agency Special Government DATES: Comments must be received on provided on the nomination form: Employees’’ (EPA Form 3110–48). This or before August 30, 2021. Contact information for the person confidential form is required and allows ADDRESSES: Submit your comments, making the nomination; contact government officials to determine identified by the docket identification information for the nominee; and the whether there is a statutory conflict (ID) number for the corresponding ICR disciplinary and specific areas of between a person’s public as identified in this document, online expertise of the nominee. Nominees will responsibilities (which include using the Federal eRulemaking Portal at be contacted by the SAB Staff Office and membership on an EPA federal advisory http://www.regulations.gov. Follow the will be asked to provide a recent committee) and private interests and online instructions for submitting curriculum vitae and a narrative activities, or the appearance of a loss of comments. Do not submit electronically biographical summary that includes: impartiality, as defined by federal any information you consider to be Current position, educational regulation. The form may be viewed and Confidential Business Information (CBI) background; research activities; sources downloaded through the ‘‘Ethics or other information whose disclosure is of research funding for the last two Requirements for Advisors’’ link on the restricted by statute. Additional years; and recent service on other SAB website at http://www.epa.gov/sab. instructions on commenting or visiting national advisory committees or This form should not be submitted as the docket, along with more information national professional organizations. part of a nomination. about dockets generally, is available at Persons having questions about the The approved policy under which the http://www.epa.gov/dockets. nomination procedures, or who are EPA SAB Office selects members for Due to the public health concerns unable to submit nominations through subcommittees and review panels is related to COVID–19, the EPA Docket the SAB website, should contact the described in the following document: Center (EPA/DC) and Reading Room is DFO at the contact information noted Overview of the Panel Formation closed to visitors with limited above. The names and biosketches of Process at the Environmental Protection exceptions. The staff continues to qualified nominees identified by Agency Science Advisory Board (EPA– provide remote customer service via respondents to this Federal Register SAB–EC–02–010), which is posted on email, phone, and webform. For the notice, and additional experts identified the SAB website at http://www.epa.gov/ latest status information on EPA/DC and by the SAB Staff Office, will be posted sab. in a List of Candidates for the Panel on docket access, visit https:// the SAB website at http://www.epa.gov/ V Khanna Johnston, www.epa.gov/dockets. sab. Public comments on the List of Deputy Director, Science Advisory Board Staff FOR FURTHER INFORMATION CONTACT: Candidates will be accepted for 21 days. Office. Carolyn Siu, Mission Support Division The public will be requested to provide [FR Doc. 2021–13857 Filed 6–29–21; 8:45 am] 7101M, Office of Program Support, relevant information or other BILLING CODE 6560–50–P Environmental Protection Agency, 1200 documentation on nominees that the Pennsylvania Ave. NW, Washington, DC SAB Staff Office should consider in 20460–0001; telephone number: (703) evaluating candidates. ENVIRONMENTAL PROTECTION 347–0159; email address: siu.carolyn@ For the EPA SAB Staff Office a AGENCY epa.gov. balanced review panel includes candidates who possess the necessary [EPA–HQ–OPP–2021–0287; EPA–HQ–OPP– SUPPLEMENTARY INFORMATION: 2021–0288; FRL–10022–67] domains of knowledge, the relevant I. What information is EPA particularly scientific perspectives (which, among Agency Information Collection interested in? other factors, can be influenced by work Activities; Proposed Renewal of Two Pursuant to PRA section 3506(c)(2)(A) history and affiliation), and the Currently Approved Collections; (44 U.S.C. 3506(c)(2)(A)), EPA collective breadth of experience to Comment Request adequately address the charge. In specifically solicits comments and forming the expert panel, the SAB Staff AGENCY: Environmental Protection information to enable it to: Office will consider public comments Agency (EPA). 1. Evaluate whether the proposed on the Lists of Candidates, information ACTION: Notice. collection of information is necessary provided by the candidates themselves, for the proper performance of the and background information SUMMARY: In compliance with the functions of the Agency, including independently gathered by the SAB Paperwork Reduction Act (PRA), this whether the information will have Staff Office. Selection criteria to be used document announces that EPA is practical utility. for panel membership include: (a) planning to submit requests to renew 2. Evaluate the accuracy of the Scientific and/or technical expertise, two currently approved Information Agency’s estimates of the burden of the knowledge, and experience (primary Collection Request (ICR) to the Office of proposed collection of information, factors); (b) availability and willingness Management and Budget (OMB). The including the validity of the to serve; (c) absence of financial ICRs are identified in this document by methodology and assumptions used.

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3. Enhance the quality, utility, and ICRs by title and corresponding ICR, Department of Agriculture clarity of the information to be OMB and docket ID numbers, this unit (USDA)(USDA, APHIS/PPQ and USDA collected. provides a brief summary of the Forest Service) administer applicator 4. Minimize the burden of the information collection activity and the certification programs within their collection of information on those who Agency’s estimated burden. The jurisdictions, but each agency’s are to respond, including through the Supporting Statement for each ICR, a certification plan must be approved by use of appropriate automated electronic, copy of which is available in the EPA before it can be implemented. mechanical, or other technological corresponding docket, provides a more Agencies authorized by EPA to collection techniques or other forms of detailed explanation. administer a certification program are collectively referred to in this document information technology, e.g., permitting A. Docket ID Number EPA–HQ–OPP– as ‘‘authorized agencies.’’ Currently all electronic submission of responses. In 2021–0288 particular, EPA is requesting comments 50 states, the District of Columbia, 6 from very small businesses (those that Title: Certification of Pesticide territories, 4 tribes and 5 federal employ less than 25) on examples of Applicators. agencies are authorized to run their own specific additional efforts that EPA ICR number: EPA ICR No. 0155.14. certification programs. Under could make to reduce the paperwork OMB control number: OMB Control authorized agencies’ certification burden for very small businesses No. 2070–0029. programs, dealerships of RUP are not ICR status: The approval for this ICR affected by this collection. required to report their dealership is scheduled to expire on December 31, information and RUP sales directly to II. What should I consider when I 2022. EPA, and such information is not prepare my comments for EPA? Abstract: EPA administers included in the paperwork burden certification programs for pesticide You may find the following estimates of this ICR. applicators under section 11 of the suggestions helpful for preparing your In areas where no authorized agency Federal Insecticide, Fungicide, and comments: has jurisdiction, EPA may administer a 1. Explain your views as clearly as Rodenticide Act (FIFRA). FIFRA allows certification program directly, called a EPA to classify a pesticide as ‘‘restricted possible and provide specific examples. Federal program. Federal certification 2. Describe any assumptions that you use’’ if the pesticide meets certain programs require RUP dealers to used. toxicity or risk criteria. The regulations maintain records of RUP sales and to 3. Provide copies of any technical in 40 CFR part 171 include procedures report and update their names and information and/or data you used that for certification programs for States, addresses with the pesticide regulatory support your views. Federal agencies, Indian tribes, or U.S. agency for enforcement purposes. 4. If you estimate potential burden or territories who wish to develop and Starting in 2007 and in 2014 costs, explain how you arrived at the implement their own certification plans respectively, the Agency implemented estimate that you provide. and programs, after obtaining EPA EPA-administered applicator 5. Submit your comments by the approval. This ICR addresses the certification programs for Indian deadline identified under DATES. paperwork activities performed by Country and for Navajo Nation (79 FR 6. Identify the docket ID number businesses, individuals and regulators 7185–89). Under the EPA plan for assigned to the ICR action in the subject to comply with training and Indian Country, dealerships operating in line on the first page of your response. certification requirements associated Indian Country are required to report You may also provide the ICR title and with applicators of restricted use their dealership and individual business related EPA and OMB numbers. pesticides (RUPs). Because of the names and addresses to EPA Regional potential of improperly applied RUPs to offices. III. What do I need to know about the harm human health or the environment, This ICR also addresses how PRA? pesticides under this classification may registrants of certain pesticide products An Agency may not conduct or be purchased and applied only by are expected to perform specific, special sponsor, and a person is not required to ‘‘certified applicators’’ or by persons paperwork activities, such as training respond to, a collection of information under the direct supervision of certified and recordkeeping, in order to comply subject to PRA approval unless it applicators. To become a certified with the terms and conditions of the displays a currently valid OMB control applicator, a person must meet certain pesticide registration (e.g., registrants of number. The OMB control numbers for standards of competency; these anthrax-related pesticide products that the EPA regulations in title 40 of the standards are met through completion of assert claims to inactivate Bacillus Code of Federal Regulations (CFR), after a certification program or test. The anthracis (anthrax) spores). Paperwork appearing in the preamble of the final additional information requirements activities associated with the use of rule, are further displayed either by contained in the January 4, 2017 final such products are conveyed specifically publication in the Federal Register or rule (82 FR 952; RIN 2070–AJ20) that as a condition of the registration. by other appropriate means, such as on amended the regulations at 40 CFR part Burden statement: The annual public the related collection instruments or 171 are addressed in another ICR that is reporting and recordkeeping burden for form, if applicable. The display of OMB currently approved under OMB Control this collection of information is control numbers for certain EPA No. 2070–0196. estimated to average 1,379,443.81 hours regulations is consolidated in a list at 40 All 50 states, the District of Columbia, per response. The ICR, a copy of which CFR 9.1. American Samoa, Cheyenne River is available in the docket, provides a As used in the PRA context, burden Sioux, Guam, Commonwealth of the detailed explanation of this estimate, is defined in 5 CFR 1320.3(b). Northern Mariana Islands, Oglala Sioux, which is only briefly summarized here: Puerto Rico, Republic of Palau, Respondents/Affected entities: IV. Which ICRs are being renewed? Shoshone-Bannock Tribe Affiliated Entities potentially affected by this ICR EPA is planning to submit two Tribes and U.S. Virgin Islands as well as include pesticide applicators, currently approved ICRs to OMB for the U.S. Department of Defense, the U.S. administration of certification programs review and approval under the PRA. In Department of the Interior, the U.S. by States/Tribal lead agencies addition to specifically identifying the Department of Energy and the U.S. (authorized agencies), individuals or

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entities engaged in activities related to requirements applicable under the PRA, certification plans as needed to comply the registration of a pesticide product, that are not already included in the ICR with the revised requirements. and RUP dealers (only for EPA ‘‘Certification of Pesticide Applicators’’ The following sections provide a administrated programs). covering 40 CFR part 171 prior to the general overview of the paperwork Estimated total number of potential new final rule. That ICR, which this ICR requirements in the final rule; burden respondents: 444,639 (total). amends, was currently-approved by the and cost estimates are found in section Frequency of response: On occasion. OMB at the time this ICR was submitted 6. Estimated total average number of to OMB with the final rule, and is Burden statement: The annual public responses for each respondent: Varies. termed the ‘‘existing ICR’’ in this reporting and recordkeeping burden for Estimated total annual burden hours: document. this collection of information is 1,379,444 hours (annual). The existing regulation (prior to the estimated to average 2,280,849 hours Estimated total annual costs: new final rule) has provisions for states, per response. The ICR, a copy of which $57,047,143.94. This includes an the District of Columbia (DC), tribes, is available in the docket, provides a estimated burden cost of territories, and federal agencies that detailed explanation of this estimate, $57,047,143.94 and an estimated cost of wish to certify applicators to use RUPs, which is only briefly summarized here: $0 for non-burden hour paperwork to submit certification plans to EPA for Respondents/Affected entities: costs, e.g., investment or maintenance review and approval, and requirements Entities potentially affected by this ICR and operational costs. to report specific information related to include Agricultural Establishments, Changes in the estimates from the last applicator certification activities Nursery and Tree Production, approval: The renewal of this ICR will annually. The regulation has standards Agricultural Pest Control and Pesticide result in neither a decrease nor increase of competency for persons who are Handling on Farms and Crop Advisors, of hours in the total estimated certified to apply RUPs, as well as Agricultural (animal) Pest Control respondent burden identified in the requirements related to noncertified (livestock spraying), Forestry Pest currently approved ICR. Since the applicators who apply RUPs under the Control, Wood Preservation Pest Agency is renewing this ICR as is, the direct supervision of certified Control, Pesticide Registrants, Pesticide total estimated respondent burden for applicators. In addition, it already Dealers, Research & Demonstration Pest this renewal ICR remains the same at requires pesticide retail dealers to Control and Crop Advisor, Ornamental 59,190 hours. The only adjustments maintain records of RUP sales in areas & Turf, Rights-of-Way Pest Control, calculated is the cost in burden which where the EPA administers an Environmental Protection Program is made to reflect the latest wage labor applicator certification program. Administrators, and Governmental Pest rates (BLS 2019). These changes are The final rule is intended to improve Control Programs. adjustments. the competency of certified applicators Estimated total number of potential In addition, OMB has requested that of RUPs and noncertified applicators respondents: 1,860,974. EPA move towards using the 18- who apply RUPs under the direct Frequency of response: On occasion. question format for ICR Supporting supervision of certified applicators. The Estimated total average number of Statements used by other federal final rule includes new and revised responses for each respondent: 195. agencies and departments and is based standards for certification for Estimated total annual burden hours: on the submission instructions commercial and private applicators, 2,280,849 hours. established by OMB in 1995, replacing provisions for recertification of Estimated total annual costs: the alternate format developed by EPA applicators, and training for $108,061,898. This includes an and OMB prior to 1995. EPA intends to noncertified applicators applying RUPs estimated burden cost of $108,061,898 update this Supporting Statement under the supervision of certified and an estimated cost of $0 for non- during the comment period to reflect the applicators. The revisions also include burden hour paperwork costs, e.g., 18-question format, and has included changes to improve the clarity and investment or maintenance and the questions in an attachment to this organization of the rule and overall operational costs. Supporting Statement. In doing so, the program operation. The proposed Changes in the estimates from the last Agency does not expect the change in changes to the regulation are intended approval: The renewal of this ICR will format to result in substantive changes to ensure that all persons who use result in neither a decrease nor increase to the information collection activities RUPs—i.e., private applicators, of hours in the total estimated or related estimated burden and costs. commercial applicators, and respondent burden identified in the noncertified applicators using RUPs currently approved ICR. Since the B. Docket ID Number EPA–HQ–OPP– under the direct supervision of certified Agency is renewing this ICR as is, the 2021–0287 applicators—are competent to use RUPs total estimated respondent burden for Title: Pesticides; Certification of in a manner that will not result in this renewal ICR remains the same at Pesticide Applicators; Final Rule [RIN unreasonable adverse effects to 2,280,849 hours. The only adjustments 2070–AJ20]. themselves, others, or the environment. calculated is the cost in burden which ICR number: EPA ICR No. 2499.03. This amendment ICR estimates the is made to reflect the latest wage labor OMB control number: OMB Control burden and costs of the final rule rates (BLS 2019). These changes are No. 2070–0196. changes related to information adjustments. ICR status: The approval for this ICR collection and includes: Training for In addition, OMB has requested that is scheduled to expire on February 28. noncertified applicators applying RUPs EPA move towards using the 18- 2022. under the direct supervision of certified question format for ICR Supporting Abstract: This ICR amendment covers applicators, recordkeeping of the Statements used by other federal the revisions contained in thea final rule noncertified applicator training, agencies and departments and is based ‘‘Certification of Pesticide Applicators’’ recordkeeping of RUP sales by pesticide on the submission instructions (Certification rule) at 40 CFR part 171, dealerships under certification programs established by OMB in 1995, replacing which regulates the certification of not administered by the EPA, and the alternate format developed by EPA applicators of RUPs. This ICR estimates burden to states, DC, territories, tribes, and OMB prior to 1995. EPA intends to the incremental burden of revised and federal agencies to revise update this Supporting Statement

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during the comment period to reflect the incurred by EPA and the United States information collection, as required by 18-question format, and has included in removing polychlorinated biphenyl the paperwork Reduction Act of 1995. the questions in an attachment to this wastes from the CUC power plant in DATES: Comments must be received on Supporting Statement. In doing so, the Rota during 2011–2013. The settlement or before July 30, 2021 to be assured of Agency does not expect the change in includes a covenant not to sue pursuant consideration. format to result in substantive changes to Sections 106 or 107(a) of CERCLA, 42 ADDRESSES: Comments may be to the information collection activities U.S.C. 9606 or 9607(a). For thirty (30) submitted electronically on or related estimated burden and costs. days following the date of publication of WWW.REGULATIONS.GOV or to Tom this Notice in the Federal Register, the IV. What is the next step in the process Fitzpatrick [email protected], Agency will receive written comments for these ICRs? 202–565–3642. Export-Import Bank of relating to the settlement. The Agency the United States, 811 Vermont Ave. EPA will consider the comments will consider all comments received and NW, Washington, DC 20571. received and amend the individual ICRs may modify or withdraw its consent to Comments submitted in response to as appropriate. The final ICR packages the settlement if comments received this notice may be made available to the will then be submitted to OMB for disclose facts or considerations that public through the review and approval pursuant to 5 CFR indicate the proposed settlement is WWW.REGULATIONS.GOV. For this 1320.12. EPA will issue another Federal inappropriate, improper, or inadequate. reason, please do not include in your Register document pursuant to 5 CFR The Agency’s response to any comments comments information of a confidential 1320.5(a)(1)(iv) to announce the received will be available for public nature, such as sensitive personal submission of these ICRs to OMB and inspection at 75 Hawthorne Street, San information or proprietary information. the opportunity for the public to submit Francisco, CA 94105. If you send an email comment, your additional comments for OMB DATES: Comments must be submitted on email address will be automatically consideration. If you have any questions or before July 30, 2021. captured and included as part of the about any of these ICRs or the approval ADDRESSES: The proposed settlement is comment that is placed in the public process in general, please contact the available for public inspection at EPA docket and made available on the person listed under FOR FURTHER Region IX, 75 Hawthorne Street, San internet. Please note that responses to INFORMATION CONTACT. Francisco, California. A copy of the this public comment request containing Authority: 44 U.S.C. 3501 et seq. proposed settlement may be obtained any routine notice about the Dated: June 24, 2021. from David H. Kim, EPA Region IX, 75 confidentiality of the communication Michal Freedhoff, Hawthorne Street, ORC–3, San will be treated as public comments that may be made available to the public Assistant Administrator, Office of Chemical Francisco, CA 94105, telephone number Safety and Pollution Prevention. 415–972–3882. Comments should notwithstanding the inclusion of the routine notice. [FR Doc. 2021–13894 Filed 6–29–21; 8:45 am] reference the CUC Power Plant Removal Site, Rota, CNMI and should be FOR FURTHER INFORMATION CONTACT: To BILLING CODE 6560–50–P addressed to Mr. Kim at the above request additional information, please address. Tom Fitzpatrick tom.fitzpatrick@ ENVIRONMENTAL PROTECTION FOR FURTHER INFORMATION CONTACT: exim.gov, 202–565–3642. AGENCY David H. Kim, Assistant Regional SUPPLEMENTARY INFORMATION: The application tool can be reviewed at: [EPA–R9–2021–04; FRL–10023–16–Region Counsel (ORC–3), Office of Regional 9] Counsel, U.S. EPA Region IX, 75 https://www.exim.gov/sites/default/ Hawthorne Street, San Francisco, CA files//forms/eib92-29.pdf. Commonwealth Utilities Corporation 94105; phone: (415) 972–3882; fax: (417) The Export-Import Bank of the United Power Plant Site, Rota, Commonwealth 947–3570; email: [email protected]. States, pursuant to the Export-Import of the Northern Mariana Islands; Notice Bank Act of 1945, as amended (12 Enrique Manzanilla, of Proposed CERCLA Settlement U.S.C. 635, et seq.), facilitates the Agreement and Order on Consent Director, Superfund Division, U.S. EPA, finance of the export of U.S. goods and Region IX. services. The ‘‘Report of Premiums AGENCY: Environmental Protection [FR Doc. 2021–13886 Filed 6–29–21; 8:45 am] Payable for Exporters Only’’ form will Agency (EPA). BILLING CODE 6560–50–P be used by exporters to report and pay ACTION: Notice; request for comment. premiums on insured shipments to various foreign buyers. SUMMARY: In accordance with Section EXPORT-IMPORT BANK Title and Form Number: EIB 92–29 122(i) of the Comprehensive Export-Import Bank Report of Premiums Environmental Response, Compensation [Public Notice: 2021–3002] Payable for Exporters Only. and Liability Act of 1980, as amended Agency Information Collection OMB Number: 3048–0017. (CERCLA), notice is hereby given of a Activities: Comment Request Type of Review: Renewal. proposed administrative settlement with Need and Use: The ‘‘Report of Commonwealth Utilities Corporation AGENCY: Export-Import Bank of the Premiums Payable for Exporters Only’’ (CUC), for payment of costs of a removal United States. form is used by exporters to report and action at a power plant owned and ACTION: Submission for OMB review and pay premiums on insured shipments to operated by CUC on the Island of Rota comments request. various foreign buyers under the terms in the Commonwealth of the Northern of the policy and to certify that Mariana Islands (CNMI). The SUMMARY: The Export-Import Bank of premiums have been correctly Environmental Protection Agency (EPA) the United States (EXIM), as part of its computed and remitted. The ‘Report of enters the settlement pursuant to continuing effort to reduce paperwork Premiums Payable for Exporters Only’ is Section 122(h)(1) of CERCLA. The and respondent burden, invites the used by EXIM to determine the settlement provides for CUC’s payment general public and other Federal eligibility of the shipment(s) and to of $315,000, plus interest, towards costs Agencies to comment on the proposed calculate the premium due to EXIM for

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its support of the shipment(s) under its be used by exporters to report and pay information collection, as required by insurance program. premiums on insured shipments to the Paperwork Reduction Act of 1995. Affected Public: This form affects various foreign buyers. DATES: Comments must be received on entities involved in the export of U.S. The Application for Short Term Letter or before July 30, 2021 to be assured of goods and services. of Credit Export Credit Insurance Policy consideration. Monthly Number of Respondents: is used to determine the eligibility of the ADDRESSES: Comments may be 2,600. applicant and the transaction for EXIM submitted electronically on Estimated Time per Respondent: 15 assistance under its insurance program. www.regulations.gov. (EIB 11–01) By minutes. EXIM customers are able to submit this email to Madolyn Phillips, Annual Burden Hours: 7,800 hours. form on paper or electronically. [email protected], Export- Frequency of Reporting or Use: Title and Form Number: EIB 92–34 Import Bank of the United States, 811 Monthly. Application for Short-Term Letter of Vermont Ave. NW, Washington, DC Government Expenses: Credit Export Credit Insurance Policy. 20571. Reviewing Time per Year: 7,800 OMB Number: 3048–0009. Comments submitted in response to hours. Type of Review: Regular. this notice may be made available to the Average Wages per Hour: $42.50. Need and Use: This form is used by public through the www.regulations.gov. Average Cost per Year: $331,500. a financial institution (or broker acting For this reason, please do not include in Benefits and Overhead: 20%. on its behalf) to obtain approval for your comments information of a Total Government Cost: $397,800. coverage of a short-term letter of credit. confidential nature, such as sensitive The information allows the EXIM staff Bassam Doughman, personal information or proprietary to make a determination of the information. If you send an email IT Specialist. eligibility of the applicant and comment, your email address will be [FR Doc. 2021–13969 Filed 6–29–21; 8:45 am] transaction for EXIM assistance under automatically captured and included as BILLING CODE 6690–01–P its programs. part of the comment that is placed in the The application tool can be reviewed public docket and made available on the at: https://www.exim.gov/sites/default/ internet. Please note that responses to EXPORT-IMPORT BANK files/pub/pending/eib92-34.pdf. this public comment request containing [Public Notice: 2021–3012] Affected Public: This form affects any routine notice about the entities involved in the export of U.S. confidentiality of the communication Agency Information Collection goods and services. will be treated as public comments that Activities: Comment Request; EIB 92– Annual Number of Respondents: 11. may be made available to the public 34 Application for Short-Term Letter of Estimated Time per Respondent: 1 hr. notwithstanding the inclusion of the Credit Export Credit Insurance Policy Annual Burden Hours: 11. routine notice. Frequency of Reporting of Use: On AGENCY: FOR FURTHER INFORMATION CONTACT: To Export-Import Bank of the occasion. United States. request additional information, please Government Expenses: Madolyn Phillips, Madolyn.Phillips@ ACTION: Submission for OMB review and Reviewing Time per Year: 11 hours. exim.gov, 202–565–3701. comments request. Average Wages per Hour: $42.50. SUPPLEMENTARY INFORMATION: The Average Cost per Year: $468 (time * SUMMARY: Export-Import Bank of the United The Export-Import Banks of wages). States, pursuant to the Export-Import the United States (EXIM), as part of its Benefits and Overhead: 20%. Bank Act of 1945, as amended (12 continuing effort to reduce paperwork Total Government Cost: $561. and respondent burden, invites the U.S.C. 635, et seq.), facilitates the general public and other Federal Bassam Doughman, finance of the export of U.S. goods and Agencies to comment on the proposed IT Specialist. services. The ‘‘Report of Premiums information collection, as required by [FR Doc. 2021–13975 Filed 6–29–21; 8:45 am] Payable for Exporters Only’’ form will the Paperwork Reduction Act of 1995. BILLING CODE 6690–01–P be used by exporters to report and pay DATES: Comments must be received on premiums on insured shipments to or before July 30, 2021 to be assured of various foreign buyers. consideration. EXPORT-IMPORT BANK Title and Form Number: EIB 11–01, Generic Clearance for the Collection of ADDRESSES: Comments may be [Public Notice: 2021–3011] Qualitative Feedback on Agency Service submitted electronically on Agency Information Collection Delivery. WWW.REGULATIONS.GOV or by mail Abstract: The proposed information Activities: Proposed Collection; to Jean Fitzgibbon, jean.fitzgibbon@ collection activity provides a means to Comment Request; Generic Clearance exim.gov, Export-Import Bank of the garner qualitative customer and for the Collection of Qualitative United States, 811 Vermont Ave. NW, stakeholder feedback in an efficient, Feedback on Agency Service Delivery Washington, DC. timely manner, in accordance with the FOR FURTHER INFORMATION CONTACT: To AGENCY: Export-Import Bank of the Administration’s commitment to request additional information, please United States. improving service delivery. By contact Jean Fitzgibbon. 202–565–3620. ACTION: Submission for OMB review and qualitative feedback we mean SUPPLEMENTARY INFORMATION: The comments request. information that provides useful Export-Import Bank of the United insights on perceptions and opinions, States, pursuant to the Export-Import SUMMARY: The Export-Import Bank of but are not statistical surveys that yield Bank Act of 1945, as amended (12 the United States (EXIM), as part of its quantitative results that can be U.S.C. 635, et seq.), facilitates the continuing effort to reduce paperwork generalized to the population of study. finance of the export of U.S. goods and and respondent burden, invites the This feedback will provide insights into services. The ‘‘Report of Premiums general public and other Federal customer or stakeholder perceptions, Payable for Exporters Only’’ form will Agencies to comment on the proposed experiences and expectations, provide

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an early warning of issues with service, that are designed to yield reliably of the information to be collected; (d) or focus attention on areas where actionable results, such as monitoring ways to minimize the burden of the communication, training or changes in trends over time or documenting collection of information on operations might improve delivery of program performance. Such data uses respondents, including through the use products or services. These collections require more rigorous designs that of automated collection techniques or will allow for ongoing, collaborative and address: The target population to which other forms of information technology; actionable communications between the generalizations will be made, the and (e) estimates of capital or start-up Agency and its customers and sampling frame, the sample design costs and costs of operation, stakeholders. It will also allow feedback (including stratification and clustering), maintenance, and purchase of services to contribute directly to the the precision requirements or power to provide information. Burden means improvement of program management. calculations that justify the proposed the total time, effort, or financial The solicitation of feedback will target sample size, the expected response rate, resources expended by persons to areas such as: Timeliness, methods for assessing potential non- generate, maintain, retain, disclose or appropriateness, accuracy of response bias, the protocols for data provide information to or for a Federal information, courtesy, efficiency of collection, and any testing procedures agency. This includes the time needed service delivery, and resolution of that were or will be undertaken prior to to review instructions; to develop, issues with service delivery. Responses fielding the study. Depending on the acquire, install and utilize technology will be assessed to plan and inform degree of influence the results are likely and systems for the purpose of efforts to improve or maintain the to have, such collections may still be collecting, validating and verifying quality of service offered to the public. eligible for submission for other generic information, processing and If this information is not collected, vital mechanisms that are designed to yield maintaining information, and disclosing feedback from customers and quantitative results. and providing information; to train stakeholders on the Agency’s services As a general matter, information personnel and to be able to respond to will be unavailable. collections will not result in any new a collection of information, to search The Agency will only submit a system of records containing privacy data sources, to complete and review collection for approval under this information and will not ask questions the collection of information; and to generic clearance if it meets the of a sensitive nature, such as sexual transmit or otherwise disclose the following conditions: behavior and attitudes, religious beliefs, information. • The collections are voluntary; and other matters that are commonly All written comments will be • The collections are low-burden for considered private. available for public inspection respondents (based on considerations of The Agency received no comments in Regulations.gov. An agency may not total burden hours, total number of response to the 60-day notice published conduct or sponsor, and a person is not respondents, or burden-hours per in the Federal Register of April 22, 2021 required to respond to, a collection of respondent) and are low-cost for both (86 FR 20494). information unless it displays a the respondents and the Federal Current Actions: Extension of currently valid Office of Management Government; approval for a collection of information. and Budget control number. • The collections are non- Type of Review: Extension. controversial and do not raise issues of Survey Type: Web based/email based Bassam Doughman, concern to other Federal agencies; survey; Feedback/Comment Evaluation IT Specialist. • Any collection is targeted to the Form; Detailed Mail Evaluation Form; [FR Doc. 2021–13951 Filed 6–29–21; 8:45 am] solicitation of opinions from Telephone; Focus Group. BILLING CODE 6690–01–P respondents who have experience with Affected Public: Individuals and the program or may have experience Households, Businesses and with the program in the near future; Organizations, State, Local or Tribal FEDERAL COMMUNICATIONS • Personally identifiable information Government. COMMISSION (PII) is collected only to the extent Below we provide projected average necessary and is not retained; estimates for the next three years: [OMB 3060–0546; FRS 35608] • Information gathered will be used Average Expected Annual Number of Information Collection Being Reviewed only internally for general service Activities: 10. by the Federal Communications improvement and program management Average Number of Respondents per Commission Under Delegated purposes and is not intended for release Activity: 467. Authority outside of the agency; Annual Responses: 4,670. • Information gathered will not be Frequency of Response: Once per AGENCY: Federal Communications used for the purpose of substantially request. Commission. informing influential policy decisions; Average Minutes per Response: 8. ACTION: Notice and request for and Burden Hours: 623. comments. • Information gathered will yield Request for Comments: Comments qualitative information; the collections submitted in response to this notice will SUMMARY: As part of its continuing effort will not be designed or expected to be summarized and/or included in the to reduce paperwork burdens, and as yield statistically reliable results or used request for OMB approval. Comments required by the Paperwork Reduction as though the results are generalizable to are invited on: (a) Whether the Act of 1995 (PRA), the Federal the population of study. collection of information is necessary Communications Commission (FCC or Feedback collected under this generic for the proper performance of the Commission) invites the general public clearance provides useful information, functions of the agency, including and other Federal agencies to take this but it does not yield data that can be whether the information shall have opportunity to comment on the generalized to the overall population. practical utility; (b) the accuracy of the following information collection(s). This type of generic clearance for agency’s estimate of the burden of the Comments are requested concerning: qualitative information will not be used collection of information; (c) ways to Whether the proposed collection of for quantitative information collections enhance the quality, utility, and clarity information is necessary for the proper

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performance of the functions of the Privacy Impact Assessment(s): No Reserve Bank indicated or the offices of Commission, including whether the impact(s). the Board of Governors, Ann E. information shall have practical utility; Needs and Uses: Market modification Misback, Secretary of the Board, 20th the accuracy of the Commission’s allows the Commission to modify the Street and Constitution Avenue NW, burden estimate; ways to enhance the local television market of a particular Washington, DC 20551–0001, not later quality, utility, and clarity of the commercial television broadcast station than July 15, 2021. information collected; ways to minimize to enable commercial television A. Federal Reserve Bank of Atlanta the burden of the collection of stations, cable operators and satellite (Erien O. Terry, Assistant Vice information on the respondents, carriers to better serve the interests of President) 1000 Peachtree Street NE, including the use of automated local communities. Market modification Atlanta, Georgia 30309. Comments can collection techniques or other forms of provides a means to avoid rigid also be sent electronically to information technology; and ways to adherence to DMA designations and to [email protected]: further reduce the information promote consumer access to in-state and 1. Heritage Bank of St. Tammany collection burden on small business other relevant television programming. Employee Stock Ownership Plan, concerns with fewer than 25 employees. Section 338(l) of the Communications Covington, Louisiana; to acquire The FCC may not conduct or sponsor a Act (the satellite market modification additional voting shares of Heritage collection of information unless it provision) and Section 614(h)(1)(C) of NOLA Bancorp, Inc., and thereby displays a currently valid Office of the Communications Act (the indirectly acquire voting shares of Management and Budget (OMB) control corresponding cable provision) permit Heritage Bank of St. Tammany, both of number. No person shall be subject to the Commission to add communities to Covington, Louisiana. any penalty for failing to comply with or delete communities from a station’s Board of Governors of the Federal Reserve a collection of information subject to the local television market following a System, June 25, 2021. PRA that does not display a valid OMB written request. Furthermore, the Ann Misback, control number. Commission may determine that Secretary of the Board. DATES: Written comments should be particular communities are part of more [FR Doc. 2021–13997 Filed 6–29–21; 8:45 am] submitted on or before August 30, 2021. than one television market. If you anticipate that you will be BILLING CODE P Federal Communications Commission. submitting comments but find it difficult to do so within the period of Cecilia Sigmund, time allowed by this notice, you should Federal Register Liaison Officer, Office of the GENERAL SERVICES advise the contacts below as soon as Secretary. ADMINISTRATION [FR Doc. 2021–13998 Filed 6–29–21; 8:45 am] possible. [Notice–PCSCOTUS–2021–01; Docket No. BILLING CODE 6712–01–P ADDRESSES: Direct all PRA comments to PCSCOTUS–2021–0001; Sequence No. 3] Cathy Williams, FCC, via email to PRA@ Office of Asset and Transportation fcc.gov and to [email protected]. FEDERAL RESERVE SYSTEM Management; Presidential Commission FOR FURTHER INFORMATION CONTACT: For on the Supreme Court of the United additional information about the Change in Bank Control Notices; States; Notification of Upcoming information collection, contact Cathy Acquisitions of Shares of a Bank or Public Virtual Meeting and Request for Williams at (202) 418–2918. Bank Holding Company Public Comment SUPPLEMENTARY INFORMATION: OMB Control Number: 3060–0546. The notificants listed below have AGENCY: Office of Government-wide Title: Section 76.59 Definition of applied under the Change in Bank Policy, General Services Administration Markets for Purposes of the Cable Control Act (Act) (12 U.S.C. 1817(j)) and (GSA). Television Mandatory Television § 225.41 of the Board’s Regulation Y (12 ACTION: Request for public comment; Broadcast Signal Carriage Rules. CFR 225.41) to acquire shares of a bank meeting notice. Form Number: N/A. or bank holding company. The factors Type of Review: Extension of a that are considered in acting on the SUMMARY: GSA is accepting written currently approved collection. applications are set forth in paragraph 7 public comments on the work of the Respondents: Business and other for- of the Act (12 U.S.C. 1817(j)(7)). Presidential Commission on the profit entities. The public portions of the Supreme Court of the United States Number of Respondents and applications listed below, as well as (Commission). Further, GSA is Responses: 120 respondents and 130 other related filings required by the providing notice of an open public responses. Board, if any, are available for virtual meeting of the Commission in Estimated Time per Response: 0.5 to immediate inspection at the Federal accordance with the requirements of the 40 hours. Federal Advisory Committee Act. For Frequency of Response: On occasion Reserve Bank(s) indicated below and at information on the topics discussed, reporting requirement; Third party the offices of the Board of Governors. please see the SUPPLEMENTARY disclosure requirement; Recordkeeping This information may also be obtained INFORMATION section of this notice. This requirement. on an expedited basis, upon request, by Total Annual Burden: 958 hours. contacting the appropriate Federal meeting is open to the public and will Total Annual Cost: $640,150. Reserve Bank and from the Board’s be live-streamed at Obligation to Respond: Required to Freedom of Information Office at www.whitehouse.gov/pcscotus/. obtain or retain benefits. The statutory https://www.federalreserve.gov/foia/ Information about the public meeting authority for this collection is contained request.htm. Interested persons may will be posted at www.whitehouse.gov/ in 47 U.S.C. 151, 154(i), 303(r), 338 and express their views in writing on the pcscotus/ prior to the meeting. 534. standards enumerated in paragraph 7 of DATES: The Commission will hold a Nature and Extent of Confidentiality: the Act. public virtual meeting on July 20, 2021 There is no need for confidentiality with Comments regarding each of these from 8:30 a.m. to 6:30 p.m., Eastern this collection of information. applications must be received at the Standard Time (EST).

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ADDRESSES: This meeting will be Services Administration, at info@ • Vulgar, obscene, profane, conducted virtually on the internet. pcscotus.gov, 202–501–1777. threatening, or abusive language; Interested individuals must register to SUPPLEMENTARY INFORMATION: personal attacks of any kind. attend as instructed below. • Discriminatory language (including Background hate speech) based on race, national Procedures for Attendance and Public origin, age, gender, sexual orientation, Comment The Administrator of GSA established the Commission under the Federal religion, or disability. • Attendance. This meeting is open to Advisory Committee Act on April 26, Endorsements of commercial the public and the Commission 2021 pursuant to Executive Order products, services, organizations, or encourages the public’s attendance. To 14023, Establishment of the Presidential other entities. • attend this public virtual meeting, Commission on the Supreme Court of Repetitive posts (for example, if you please send an email with the Subject: the United States, issued on April 9, submit the same material multiple Registration. In the body of the email, times). 2021. Per the executive order, the • provide your full name, organization (if Commission shall produce a report for Spam or undecipherable language applicable), email address, and phone the President that includes the (gratuitous links will be viewed as number to the Designated Federal following: spam). Officer, at [email protected]. • Copyrighted material. (i) An account of the contemporary • Registration requests must be received commentary and debate about the role Links to external sites. • Images or videos. by 5:00 p.m. ET, on July 16, 2021. and operation of the Supreme Court in • Solicitation of funds. Registrations received after this day/ our constitutional system and about the • time may not be processed. Procurement-sensitive information. functioning of the constitutional process • Surveys, polls, and questionnaires Public Comments. Written public by which the President nominates and, comments are being accepted via http:// subject to the Office of Management and by and with the advice and consent of Budget Paperwork Reduction Act www.regulations.gov, the Federal the Senate, appoints Justices to the eRulemaking portal throughout the life clearance. Supreme Court; • Personally Identifiable Information of the Commission. Written comments (ii) The historical background of other on the Commission will be accepted (PII) or Sensitive Information (SI). periods in the Nation’s history when the • Off-topic posts. until November 15, 2021. To submit a Supreme Court’s role and the • Media inquiries. written public comment, go to http:// nominations and advice-and-consent Thank you for your interest in the www.regulations.gov and search for process were subject to critical Presidential Commission on the PCSCOTUS–2021–0001. Then, click on assessment and prompted proposals for Supreme Court of the United States. We the ‘‘Comment Now’’ button that shows reform; and look forward to hearing from you. up in the search results. Select the link (iii) An analysis of the principal ‘‘Comment Now’’ that corresponds with arguments in the contemporary public Krystal J. Brumfield, this notice. Follow the instructions debate for and against Supreme Court Associate Administrator, Office of provided on the screen. Please include reform, including an appraisal of the Government-wide Policy. your name, company name (if merits and legality of particular reform [FR Doc. 2021–13999 Filed 6–29–21; 8:45 am] applicable), and ‘‘PCSCOTUS–2021–01, proposals. BILLING CODE 6820–14–P Notification of Upcoming Public Virtual Meeting and Request for Public Meeting Agenda Comment’’ on your attached document The purpose of this meeting is for the DEPARTMENT OF HEALTH AND (if applicable). Public comments Commissioners to hear testimony from HUMAN SERVICES meeting our public comment policy, experts. This testimony will be included under SUPPLEMENTARY organized into six panels. Agency for Healthcare Research and INFORMATION, will be made available for • Panel #1: Perspectives from Supreme Quality review. Comments provided by 5:00 Court Practitioners and Views on the National Advisory Council for p.m. ET, on July 16, 2021 will be Confirmation Process Healthcare Research and Quality: provided to the Commission members • Panel #2: Perspectives on Supreme Request for Nominations for Members in advance of the July 20 public Court Reform I meeting. Comments submitted after this • Panel #3: Perspectives on Supreme AGENCY: Agency for Healthcare Research date will still be provided to the Court Reform II and Quality (AHRQ), HHS. Commission members, but please be • Panel #4: Term Limits and Turnover ACTION: advised that Commission members may Notice of request for on the Supreme Court nominations for members. not have adequate time to consider the • Panel #5: Composition of the comments prior to the meeting. Supreme Court SUMMARY: The National Advisory Special accommodations. For • Panel #6: Closing Reflections on the Council for Healthcare Research and information on services for individuals Supreme Court and Constitutional Quality (the Council) is to advise the with disabilities, or to request Governance Secretary of HHS (Secretary) and the accommodation of a disability, please Director of the Agency for Healthcare contact the Designated Federal Officer at Public Comment Policy Research and Quality (AHRQ) with least 10 business days prior to the The Commission asks that written respect to activities proposed or meeting to give GSA as much time as public comments be respectful and undertaken to carry out AHRQ’s possible to process the request. relevant to the work of the Commission. statutory mission. AHRQ produces FOR FURTHER INFORMATION CONTACT: For All comments are reviewed before they evidence to make health care safer, information on the public virtual can be shared with the Commission or higher quality, more accessible, meeting, contact Dana Fowler, posted online. Comments that include equitable, and affordable, and to work Designated Federal Officer, Office of the following will not be shared on within the U.S. Department of Health Government-wide Policy, General Regulations.gov: and Human Services and with other

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partners to make sure that the evidence staggered to permit an orderly rotation SUMMARY: The Office Head Start (OHS), is understood and used. Seven current of membership. Administration for Children and members’ terms will expire in Interested persons may nominate one Families (ACF), U.S. Department of November 2021. or more qualified persons for Health and Human Services (HHS), is DATES: Nominations should be received membership on the Council. Self- requesting a 3-year extension of the on or before 60 days after date of nominations are accepted. Nominations information collection requirements publication. shall include: (1) A copy of the under the Head Start Program nominee’s resume or curriculum vitae; Performance Standards (OMB #0970– ADDRESSES: Nominations should be sent and (2) a statement that the nominee is 0148). There are no changes to the to Jaime Zimmerman via email at willing to serve as a member of the information collection. [email protected]. Council. Selected candidates will be DATES: Comments due within 30 days of FOR FURTHER INFORMATION CONTACT: asked to provide detailed information publication. OMB must make a decision Jaime Zimmerman, AHRQ, at (301) 427– concerning their financial interests, about the collection of information 1456. consultant positions and research grants between 30 and 60 days after SUPPLEMENTARY INFORMATION: 42 U.S.C. and contracts, to permit evaluation of publication of this document in the 299c provides that the Secretary shall possible sources of conflict of interest. Federal Register. Therefore, a comment appoint to the Council twenty one Please note that once a candidate is is best assured of having its full effect appropriately qualified individuals. At nominated, AHRQ may consider that if OMB receives it within 30 days of least seventeen members shall be nomination for future positions on the publication. representatives of the public and at least Council. one member shall be a specialist in the The Department seeks a broad ADDRESSES: Written comments and rural aspects of one or more of the geographic representation. In addition, recommendations for the proposed professions or fields listed below. In AHRQ conducts and supports research information collection should be sent addition, the Secretary designates, as ex concerning priority populations, which within 30 days of publication of this officio members, representatives from include: Inner city; rural; low income; notice to www.reginfo.gov/public/do/ other Federal agencies, principally minority; women; children; elderly; and PRAMain. Find this particular agencies that conduct or support health those with special health care needs, information collection by selecting care research, as well as Federal officials including those who have disabilities, ‘‘Currently under 30-day Review—Open the Secretary may consider appropriate. need chronic care, or need end-of-life for Public Comments’’ or by using the 42 U.S.C. 299c(c)(3). health care. See 42 U.S.C. 299(c). AHRQ search function. Seven current members’ terms will also includes in its definition of priority SUPPLEMENTARY INFORMATION: expire in November 2021. To fill these populations those groups identified in Description: Section 641A of the Head positions, we are seeking individuals Section 2(a) of Executive Order 13985 as Start Act, 42 U.S.C. 9836A, directs HHS who: (1) Are distinguished in the members of underserved communities: to develop ‘‘scientifically based and conduct of research, demonstration Black, Latino, and Indigenous and developmentally appropriate education projects, and evaluations with respect to Native American persons, Asian performance standards related to school health care; (2) are distinguished in the Americans and Pacific Islanders and readiness’’ and ‘‘ensure that any such fields of health care quality research or other persons of color; members of revisions in the standards do not result health care improvement; (3) are religious minorities; lesbian, gay, in the elimination of or any reduction in distinguished in the practice of bisexual, transgender, and queer quality, scope, or types of health, medicine; (4) are distinguished in other (LGBTQ+) persons; persons with educational, parental involvement, health professions; (5) represent the disabilities; persons who live in rural nutritional, social, or other services.’’ private health care sector (including areas; and persons otherwise adversely The Office of Head Start (OHS) health plans, providers, and purchasers) affected by persistent poverty or announced in the Federal Register in or are distinguished as administrators of inequality. Nominations of persons with 2016 the first comprehensive revision of health care delivery systems; (6) are expertise in health care for these the Head Start Program Performance distinguished in the fields of health care priority populations are encouraged. Standards (HSPPS) since their original economics, information systems, law, Dated: June 24, 2021. release in 1975. This information ethics, business, or public policy; and Marquita Cullom, collection was approved alongside the (7) represent the interests of patients Acting Director. final rule for the HSPPS. and consumers of health care. 42 U.S.C. [FR Doc. 2021–13966 Filed 6–29–21; 8:45 am] This information collection is entirely 299c(c)(2). Individuals are particularly recordkeeping and does not contain any BILLING CODE 4160–90–P sought with experience and success in standardized instruments to provide these activities. AHRQ will accept flexibility for local programs. These nominations to serve on the Council in DEPARTMENT OF HEALTH AND records are intended to act as a tool for a representative capacity. HUMAN SERVICES grantees and delegate agencies to be The Council meets in the Washington, used in their day-to-day operations. For DC, metropolitan area, generally in Administration for Children and example, this includes the requirement Rockville, Maryland, approximately Families that programs maintain a waiting list of three times a year to provide broad eligible families. There are no changes guidance to the Secretary and AHRQ’s Submission for OMB Review; Head to the record keeping requirements. Director on the direction of and Start Program Performance Standards Respondents: Head Start Grantees. programs undertaken by AHRQ. (OMB #0970–0148) Depending on the standard, the Seven individuals will be selected by AGENCY: Office of Head Start, calculated burden hours is based on the the Secretary to serve on the Council Administration for Children and individual enrollee (1,054,720), family beginning with the meeting in the Families, HHS. (956,120), program (3,020), or staff spring of 2022. Members generally serve (265,030). In a few cases, only a ACTION: Request for public comment. 3-year terms. Appointments are proportion of one of these may apply.

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ANNUAL BURDEN ESTIMATES

Total Total number of Average Total Annual Instrument number of responses per burden hours burden burden respondents respondent per response hours hours

1301.6(a) ...... 3,020 1 0.70 2,114 2,114 1302.12(k) ...... 1,054,720 1 .166 175,084 175,084 1302.14(c) ...... 3,020 1 2.00 6,040 6,040 1302.16(b) ...... 3,020 1 5.00 15,100 15,100 1302.33(a)–(b) ...... 1,054,720 1 1.00 1,054,720 1,054,720 1302.33(c)(2) ...... 294,632 1 2.00 589,264 589,264 1302.42(a)–(b) ...... 1,054,720 1 0.66 696,115 696,115 1302.42(e) ...... 3,020 1 0.50 1,510 1,510 1302.47(b)(7)(iv) ...... 3,020 1 0.50 1,510 1,510 1302.53(b)–(d) ...... 3,020 1 0.166 501 501 1302.90(a) ...... 3,020 1 0.50 1,510 1,510 1302.90(b)(1)(i)–(iv), (b)(4) ...... 79,509 1 0.33 26,238 26,238 1302.93(a) ...... 26,503 1 0.25 6,626 6,626 1302.94(a) ...... 3,020 1 0.166 501 501 1302.101(a)(4), 1302.102(b)–(c) ...... 3,020 1 79.00 238,580 238,580 1302.102(d)(3) ...... 110 1 10.00 1,100 1,100 1303.12 ...... 3,020 1 0.166 501 501 1303.22–24 ...... 956,120 1 0.33 315,520 315,520 1303.42–53 ...... 260 1 40.00 10,400 10,400 1303.70(c) ...... 200 1 1.00 200 200 1303.72(a)(3) ...... 3,020 1 2.00 6,040 6,040 1304.13 ...... 75 1 60.00 4,500 4,500 1304.15(a) ...... 400 1 0.25 100 100

Estimated Total Annual Burden solicits comments on information anyone else’s Social Security number, or Hours: 3,153,774. collection associated with FDA’s confidential business information, such Authority: 42 U.S.C. 9836A. MedWatch adverse experience reporting as a manufacturing process. Please note (AER) program. that if you include your name, contact Mary B. Jones, DATES: Submit either electronic or information, or other information that ACF/OPRE Certifying Officer. written comments on the collection of identifies you in the body of your [FR Doc. 2021–14123 Filed 6–29–21; 8:45 am] information by August 30, 2021. comments, that information will be BILLING CODE 4184–40–P ADDRESSES: You may submit comments posted on https://www.regulations.gov. • as follows. Please note that late, If you want to submit a comment untimely filed comments will not be with confidential information that you DEPARTMENT OF HEALTH AND considered. Electronic comments must do not wish to be made available to the HUMAN SERVICES be submitted on or before August 30, public, submit the comment as a written/paper submission and in the Food and Drug Administration 2021. The https://www.regulations.gov electronic filing system will accept manner detailed (see ‘‘Written/Paper [Docket No. FDA–2014–N–1960] comments until 11:59 p.m. Eastern Time Submissions’’ and ‘‘Instructions’’). at the end of August 30, 2021. Agency Information Collection Written/Paper Submissions Comments received by mail/hand Activities; Proposed Collection; delivery/courier (for written/paper Submit written/paper submissions as Comment Request; MedWatch: The submissions) will be considered timely follows: Food and Drug Administration Medical • if they are postmarked or the delivery Mail/Hand delivery/Courier (for Products Reporting Program service acceptance receipt is on or written/paper submissions): Dockets AGENCY: Food and Drug Administration, before that date. Management Staff (HFA–305), Food and HHS. Drug Administration, 5630 Fishers Electronic Submissions Lane, Rm. 1061, Rockville, MD 20852. ACTION: Notice. Submit electronic comments in the • For written/paper comments SUMMARY: The Food and Drug following way: submitted to the Dockets Management Administration (FDA, Agency, or we) is • Federal eRulemaking Portal: Staff, FDA will post your comment, as announcing an opportunity for public https://www.regulations.gov. Follow the well as any attachments, except for comment on the proposed collection of instructions for submitting comments. information submitted, marked, and certain information by the Agency. Comments submitted electronically, identified, as confidential, if submitted Under the Paperwork Reduction Act of including attachments, to https:// as detailed in ‘‘Instructions.’’ 1995 (PRA), Federal Agencies are www.regulations.gov will be posted to Instructions: All submissions received required to publish notice in the the docket unchanged. Because your must include the Docket No. FDA– Federal Register concerning each comment will be made public, you are 2014–N–1960 for ‘‘MedWatch: The FDA proposed collection of information, solely responsible for ensuring that your Medical Products Reporting Program.’’ including each proposed extension of an comment does not include any Received comments, those filed in a existing collection of information, and confidential information that you or a timely manner (see ADDRESSES), will be to allow 60 days for public comment in third party may not wish to be posted, placed in the docket and, except for response to the notice. This notice such as medical information, your or those submitted as ‘‘Confidential

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Submissions,’’ publicly viewable at or requirements that members of the program. The MedWatch program https://www.regulations.gov or at the public submit reports, keep records, or allows anyone to submit reports to FDA Dockets Management Staff between 9 provide information to a third party. on adverse events, including injuries a.m. and 4 p.m., Monday through Section 3506(c)(2)(A) of the PRA (44 and/or deaths, as well as other product Friday, 240–402–7500. U.S.C. 3506(c)(2)(A)) requires Federal experiences associated with the • Confidential Submissions—To Agencies to provide a 60-day notice in products we regulate. While the submit a comment with confidential the Federal Register concerning each MedWatch program provides for both information that you do not wish to be proposed collection of information, paper-based and electronic reporting, made publicly available, submit your including each proposed extension of an this information collection covers comments only as a written/paper existing collection of information, paper-based reporting. Requirements submission. You should submit two before submitting the collection to OMB regarding mandatory reporting of copies total. One copy will include the for approval. To comply with this adverse events or product problems information you claim to be confidential requirement, FDA is publishing notice have been codified in parts 310, 314, with a heading or cover note that states of the proposed collection of 329, 600, and 803 (21 CFR 310, 314, ‘‘THIS DOCUMENT CONTAINS information set forth in this document. 600, and 803), and specified in sections CONFIDENTIAL INFORMATION.’’ The With respect to the following 503B, 760, and 761 of the FD&C Act (21 Agency will review this copy, including collection of information, FDA invites U.S.C. 353b, 379aa, and 379aa–1). the claimed confidential information, in comments on these topics: (1) Whether Mandatory reporting of adverse events its consideration of comments. The the proposed collection of information for human cells, tissues, and cellular- second copy, which will have the is necessary for the proper performance and tissue-based products (HCT/Ps) claimed confidential information of FDA’s functions, including whether have been codified in § 1271.350 (21 redacted/blacked out, will be available the information will have practical CFR 1271.350). Other postmarketing for public viewing and posted on utility; (2) the accuracy of FDA’s reporting associated with requirements https://www.regulations.gov. Submit estimate of the burden of the proposed found in sections 201, 502, 505, and 701 both copies to the Dockets Management collection of information, including the (21 U.S.C. 321, 352, 355, and 371) of the Staff. If you do not wish your name and validity of the methodology and FD&C Act and applicable to certain drug contact information to be made publicly assumptions used; (3) ways to enhance products with and without approved available, you can provide this the quality, utility, and clarity of the applications are approved under OMB information on the cover sheet and not information to be collected; and (4) control number 0910–0230. in the body of your comments and you ways to minimize the burden of the Since 1993, mandatory adverse event must identify this information as collection of information on reporting has been supplemented by ‘‘confidential.’’ Any information marked respondents, including through the use voluntary reporting by healthcare as ‘‘confidential’’ will not be disclosed of automated collection techniques, professionals, patients, and consumers except in accordance with 21 CFR 10.20 when appropriate, and other forms of via the MedWatch reporting process. To and other applicable disclosure law. For information technology. carry out its responsibilities, the Agency more information about FDA’s posting needs to be informed when an adverse of comments to public dockets, see 80 MedWatch: The FDA Medical Products event, product problem, error with use FR 56469, September 18, 2015, or access Reporting Program of a human medical product, or the information at: https:// OMB Control Number 0910–0291— evidence of therapeutic failure is www.govinfo.gov/content/pkg/FR-2015- Extension suspected or identified in clinical use. When FDA receives this information 09-18/pdf/2015-23389.pdf. This information collection supports Docket: For access to the docket to from healthcare professionals, patients, FDA laws and regulations governing read background documents or the or consumers, the report becomes data adverse event reports and product electronic and written/paper comments that will be used to assess and evaluate experience reports for FDA-regulated received, go to https:// the risk associated with the product. products. The Federal Food, Drug, and www.regulations.gov and insert the FDA will take any necessary action to Cosmetic Act (FD&C Act) (21 U.S.C. docket number, found in brackets in the reduce, mitigate, or eliminate the 353b, 355, 360i, 360l, 379aa, and 393) heading of this document, into the public’s exposure to the risk through and the Public Health Service Act (42 ‘‘Search’’ box and follow the prompts regulatory and public health U.S.C. 262) authorize FDA to collect and/or go to the Dockets Management interventions. adverse event reports and product Staff, 5630 Fishers Lane, Rm. 1061, To implement these reporting experience reports from regulated Rockville, MD 20852, 240–402–7500. provisions for FDA-regulated products industry and to monitor the safety of (except vaccines) during their post- FOR FURTHER INFORMATION CONTACT: drugs, biologics, medical devices, and approval and marketed lifetimes, we Domini Bean, Office of Operations, dietary supplements. These reporting developed the following three forms, Food and Drug Administration, Three and recordkeeping requirements are available for download from our website White Flint North, 10A–12M, 11601 found in FDA regulations, discussed in or upon request to the Agency: (1) Form Landsdown St., North Bethesda, MD Agency guidance, and included in FDA 3500 may be used for voluntary 20852, 301–796–5733, PRAStaff@ Agency forms. Although there are no (i.e., not mandated by law or regulation) fda.hhs.gov. laws or regulations mandating reporting by healthcare professionals; SUPPLEMENTARY INFORMATION: Under the postmarket reporting for medical foods, (2) Form FDA 3500A is used for PRA (44 U.S.C. 3501–3521), Federal infant formula, cosmetics, or tobacco mandatory reporting (i.e., required by Agencies must obtain approval from the products, we encourage voluntary law or regulation); and (3) Form FDA Office of Management and Budget reporting of adverse experiences 3500B, available in English and (OMB) for each collection of associated with these products. Spanish, is written in plain language information they conduct or sponsor. To facilitate both consumer and and may be used for voluntary reporting ‘‘Collection of information’’ is defined industry reporting of adverse events and (i.e., not mandated by law or regulation) in 44 U.S.C. 3502(3) and 5 CFR experiences with FDA-regulated by consumers (i.e., patients and their 1320.3(c) and includes Agency requests products, we developed the MedWatch caregivers). Respondents to the

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information collection are healthcare Reporting Portal at http:// reasonably require to assure that such professionals, medical care www.safetyreporting.hhs.gov/. In that devices are not adulterated or organizations and other user facilities case, the Form FDA 3500 is not used. misbranded and to otherwise assure its (e.g., extended care facilities, Form FDA 3500 may be used to report safety and effectiveness. The Safe ambulatory surgical centers), to the Agency adverse events, product Medical Device Act of 1990, signed into consumers, manufacturers of biological, problems, product use errors, and law on November 28, 1990, amends food products including dietary therapeutic failures. The form is section 519 of the FD&C Act. The supplements and special nutritional provided in both paper and electronic amendment requires that user facilities products (e.g., infant formula and formats. Reporters may mail or fax such as hospitals, nursing homes, medical foods), cosmetics, drug paper forms to the Agency. A fillable ambulatory surgical facilities, and products or medical devices, and .pdf version of the form is available at outpatient treatment facilities report importers. https://www.accessdata.fda.gov/scripts/ deaths related to medical devices to FDA and to the manufacturer, if known. Use of Form FDA 3500 (Voluntary medwatch/ or electronically submit a Serious illnesses and injuries are to be Reporting) report via the MedWatch Online Voluntary Reporting Form at https:// reported to the manufacturer or to FDA This voluntary version of the form www.accessdata.fda.gov/scripts/ if the manufacturer is not known. These may be used by healthcare professionals medwatch/. Reporting is supported for statutory requirements regarding to submit all reports not mandated by drugs, non-vaccine biologicals, medical mandatory reporting have been codified Federal law or regulation. Individual devices, food products, special by FDA under 21 CFR part 803 (part healthcare professionals are not nutritional products, cosmetics, and 803). Part 803 mandates the use of the required by law or regulation to submit non-prescription human drug products Form FDA 3500A for reporting to FDA reports to the Agency or the marketed without an approved on medical devices. While most manufacturer, with the exception of application. The paper form may also be reporting associated with medical certain adverse events following used to submit reports about dietary device products is covered under OMB immunization with vaccines as supplements. Electronic reports for control number 0910–0437, we retain mandated by the National Childhood dietary supplements may be submitted coverage for paper-based adverse Vaccine Injury Act of 1986. Reports for to the Agency via an online submission experience report submissions in this vaccines are not submitted via route called the Safety Reporting Portal collection. MedWatch or MedWatch forms, but are at http://www.safetyreporting.hhs.gov/. Dietary Supplements submitted to the Vaccines Adverse Electronic reports for tobacco products Event Reporting System (VAERS; see may be submitted to the Agency via the Section 502(x) in the FD&C Act http://vaers.hhs.gov), which is jointly tobacco questionnaire within the online implements the requirements of The Dietary Supplement and administered by FDA and the Centers Safety Reporting Portal at http:// for Disease Control and Prevention. Nonprescription Drug Consumer www.safetyreporting.hhs.gov/. Hospitals are not required by Federal Protection Act, which became law (Pub. law or regulation to submit reports Use of Form FDA 3500A—Mandatory L. 109–462) on December 22, 2006. associated with drug products, Reporting These requirements apply to biological products, or special manufacturers, packers, and distributors Drug and Biological Products nutritional products. However, hospitals of nonprescription human drug and other user facilities are required by Sections 503B, 505(j), and 704 of the products marketed without an approved Federal law to report medical device- FD&C Act (21 U.S.C. 374) require that application. The law requires reports of related deaths and serious injuries. important safety information relating to serious adverse events to be submitted Under Federal law and regulation all human prescription drug products be to the Agency by manufacturers of (section 761(b)(1) of the FD&C Act), a made available to FDA in the event it dietary supplements. Electronic reports dietary supplement manufacturer, becomes necessary to take appropriate for dietary supplements may be packer, or distributor whose name action to ensure protection of the public submitted using the Safety Reporting appears on the label of a dietary health. Mandatory reporting of adverse Portal at http:// supplement marketed in the United events for HCT/Ps is codified in www.safetyreporting.hhs.gov/. Paper- States is required to submit to FDA any § 1271.350. Consistent with statutory based dietary supplement reports may serious adverse event report it receives requirements, information is required to be submitted using the MedWatch Form regarding use of the dietary supplement be submitted electronically and FDA 3500A. in the United States. However, FDA therefore we account for most all reports Use of Form FDA 3500B—Consumer bears the burden to gather and review under OMB control number 0910–0645, Voluntary Reporting evidence that a dietary supplement may established to support electronic be adulterated under section 402 of the reporting to our MedWatch program. At This voluntary version of the form FD&C Act after that product is the same time, regulations provided for may be used by consumers, patients, or marketed. Therefore, the Agency waivers from the electronic submission caregivers to submit reports not depends on the voluntary reporting by requirements and we therefore account mandated by Federal law or regulation. healthcare professionals and especially for paper-based reporting in this Individual consumers, patients, or by consumers of suspected serious information collection. caregivers are not required by law or adverse events and product quality regulation to submit reports to the problems associated with the use of Medical Device Products Agency or the manufacturer. FDA dietary supplements. All dietary Section 519 of the FD&C Act (21 supports and encourages direct supplement reports were originally U.S.C. 360i) requires manufacturers and reporting to the Agency by consumers of received by the Agency on paper importers, of devices intended for suspected adverse events and other versions of Form FDA 3500 (by mail or human use to establish and maintain product problems associated with fax). Today, electronic reports may be records, make reports, and provide human medical products, food, dietary sent to the Agency via an online information as the Secretary of Health supplements, and cosmetic products submission route called the Safety and Human Services may by regulation and invite these respondents to visit our

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website at https://www.fda.gov/safety/ Since 2013, FDA has made available mail or fax paper forms to the Agency report-problem-fda for more the 3500B form. Proposed during the or electronically submit a report via the information. Since the inception of the previous authorization in 2012, the MedWatch Online Voluntary Reporting MedWatch program in July 1993, the 3500B form is a version of the 3500 form Form at https:// program has been promoting and that is tailored for consumers and www.accessdata.fda.gov/scripts/ facilitating voluntary reporting by both written in plain language in medwatch/. A fillable .pdf version of the the public and healthcare professionals. conformance with the Plain Writing Act form, available at http://www.fda.gov/ FDA has further encouraged voluntary of 2010 (https://www.govinfo.gov/ downloads/AboutFDA/ reporting by requiring inclusion of the content/pkg/PLAW-111publ274/pdf/ ReportsManualsForms/Forms/ MedWatch toll-free phone number or PLAW-111publ274.pdf). The 3500B UCM349464.pdf may be downloaded, the MedWatch internet address on all form evolved from several iterations of completed, and mailed or faxed to the outpatient drug prescriptions dispensed, draft versions, with input from human as mandated by section 17 of the Best factors experts, from other regulatory Agency. Reporting is supported for Pharmaceuticals for Children Act (Pub. agencies and with extensive input from drugs, non-vaccine biologicals, medical L. 107–109). consumer advocacy groups and the devices, food products, special Section 906 of the FDA Amendments public. Since 2019, the 3500B form has nutritional products, cosmetics, and Act amended section 502(n) of the been available in Spanish at https:// non-prescription human drug products FD&C Act, mandating that published www.fda.gov/safety/medwatch-fda- marketed without an approved direct-to-consumer advertisements for safety-information-and-adverse-event- application. The paper form may also be prescription drugs include the following reporting-program/reporting-serious- used to submit reports about dietary statement printed in conspicuous text problems-fda and available to upload supplements. Electronic reports for (this includes vaccine products): ‘‘You electronically since 2021 at https:// dietary supplements may be submitted are encouraged to report negative side www.accessdata.fda.gov/scripts/ to the Agency via an online submission effects of prescription drugs to the FDA. medwatch/ route called the Safety Reporting Portal Visit https://www.fda.gov/medwatch, or index.cfm?action=reporting.spanish. at http://www.safetyreporting.hhs.gov/. call 1–800–FDA–1088.’’ Most private Form FDA 3500B, may be used to Electronic reports for tobacco products vendors of consumer medication report adverse events, product may be submitted to the Agency via the information, the drug product-specific problems, product use errors and tobacco questionnaire within the online instructions dispensed to consumers at problems after switching from one Safety Reporting Portal at http:// outpatient pharmacies, remind patients product maker to another maker to the www.safetyreporting.hhs.gov/. to report ‘‘side effects’’ to FDA and Agency. The form is provided in both provide contact information to permit paper and electronic formats. We estimate the burden of this MedWatch reporting. Respondents may submit reports by collection of information as follows: TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

FDA center or Number of Average 21 CFR section Number of responses per Total annual burden per Total hours and/or FDA form respondents respondent responses response

Center for Biologics Evaluation and Research/Center for Drug Evaluation and Research: Form 3500 ...... 14,727 1 14,727 0.66 (40 9,720 minutes) Form 3500A(§§ 310.305, 314.80, 314.98, 600.80, and 1271.350) ...... 599 98 58,702 1.21 71,029 Form 3500A (§ 310.305 outsourcing facilities) ...... 50 2 100 1.21 121 Center for Devices and Radiological Health: Form 3500 ...... 5,233 1 5,233 0.66 (40 3,454 minutes) Form 3500A (part 803) ...... 2,277 296 673,992 1.21 815,530 Center for Food Safety and Applied Nutrition: Form 3500 ...... 1,793 1 1,793 0.66 (40 1,183 minutes) Form 3500A ...... 1,659 1 1,659 1.21 2,007 Center for Tobacco Products: Form 3500 ...... 39 1 39 0.66 (40 26 minutes) All Centers: Form 3500B ...... 13,750 1 13, 750 0.46 (28 6,325 minutes) Written requests for temporary waiver under § 329.100(c)(2) ...... 1 1 1 1 1

Total ...... 909,396 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

We are retaining the currently DEPARTMENT OF HEALTH AND ACTION: Notice. approved burden estimates for the HUMAN SERVICES SUMMARY: information collection. The Food and Drug Food and Drug Administration Administration (FDA or the Agency) has Dated: June 24, 2021. determined the regulatory review period Lauren K. Roth, [Docket No. FDA–2020–E–1340] for AXONICS SACRAL Acting Principal Associate Commissioner for Determination of Regulatory Review NEUROMODULATION SYSTEM and is Policy. Period for Purposes of Patent publishing this notice of that [FR Doc. 2021–13943 Filed 6–29–21; 8:45 am] Extension; AXONICS SACRAL determination as required by law. FDA has made the determination because of BILLING CODE 4164–01–P NEUROMODULATION SYSTEM the submission of an application to the AGENCY: Food and Drug Administration, Director of the U.S. Patent and Health and Human Services (HHS). Trademark Office (USPTO), Department

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of Commerce, for the extension of a • Mail/Hand delivery/Courier (for docket number, found in brackets in the patent which claims that medical written/paper submissions): Dockets heading of this document, into the device. Management Staff (HFA–305), Food and ‘‘Search’’ box and follow the prompts DATES: Anyone with knowledge that any Drug Administration, 5630 Fishers and/or go to the Dockets Management of the dates as published (see Lane, Rm. 1061, Rockville, MD 20852. Staff, 5630 Fishers Lane, Rm. 1061, • For written/paper comments SUPPLEMENTARY INFORMATION) are Rockville, MD 20852, 240–402–7500. submitted to the Dockets Management incorrect may submit either electronic FOR FURTHER INFORMATION CONTACT: Staff, FDA will post your comment, as or written comments and ask for a Beverly Friedman, Office of Regulatory well as any attachments, except for redetermination by August 30, 2021. Policy, Food and Drug Administration, information submitted, marked and Furthermore, any interested person may 10903 New Hampshire Ave., Bldg. 51, identified, as confidential, if submitted petition FDA for a determination Rm. 6250, Silver Spring, MD 20993, as detailed in ‘‘Instructions.’’ 301–796–3600. regarding whether the applicant for Instructions: All submissions received extension acted with due diligence must include the Docket No. FDA– SUPPLEMENTARY INFORMATION: during the regulatory review period by 2020–E–1340 for ‘‘Determination of I. Background December 27, 2021. See ‘‘Petitions’’ in Regulatory Review Period for Purposes The Drug Price Competition and the SUPPLEMENTARY INFORMATION section of Patent Extension; AXONICS SACRAL for more information. NEUROMODULATION SYSTEM.’’ Patent Term Restoration Act of 1984 ADDRESSES: You may submit comments Received comments, those filed in a (Pub. L. 98–417) and the Generic Animal Drug and Patent Term as follows. Please note that late, timely manner (see ADDRESSES), will be untimely filed comments will not be placed in the docket and, except for Restoration Act (Pub. L. 100–670) considered. Electronic comments must those submitted as ‘‘Confidential generally provide that a patent may be be submitted on or before August 30, Submissions,’’ publicly viewable at extended for a period of up to 5 years 2021. The https://www.regulations.gov https://www.regulations.gov or at the so long as the patented item (human electronic filing system will accept Dockets Management Staff between 9 drug product, animal drug product, comments until 11:59 p.m. Eastern Time a.m. and 4 p.m., Monday through medical device, food additive, or color at the end of August 30, 2021. Friday, 240–402–7500. additive) was subject to regulatory Comments received by mail/hand • Confidential Submissions—To review by FDA before the item was delivery/courier (for written/paper submit a comment with confidential marketed. Under these acts, a product’s submissions) will be considered timely information that you do not wish to be regulatory review period forms the basis if they are postmarked or the delivery made publicly available, submit your for determining the amount of extension service acceptance receipt is on or comments only as a written/paper an applicant may receive. before that date. submission. You should submit two A regulatory review period consists of copies total. One copy will include the two periods of time: A testing phase and Electronic Submissions information you claim to be confidential an approval phase. For medical devices, Submit electronic comments in the with a heading or cover note that states the testing phase begins with a clinical following way: ‘‘THIS DOCUMENT CONTAINS investigation of the device and runs • Federal eRulemaking Portal: CONFIDENTIAL INFORMATION.’’ The until the approval phase begins. The https://www.regulations.gov. Follow the Agency will review this copy, including approval phase starts with the initial instructions for submitting comments. the claimed confidential information, in submission of an application to market Comments submitted electronically, its consideration of comments. The the device and continues until FDA including attachments, to https:// second copy, which will have the grants permission to market the device. www.regulations.gov will be posted to claimed confidential information Although only a portion of a regulatory the docket unchanged. Because your redacted/blacked out, will be available review period may count toward the comment will be made public, you are for public viewing and posted on actual amount of extension that the solely responsible for ensuring that your https://www.regulations.gov. Submit Director of USPTO may award (for comment does not include any both copies to the Dockets Management example, half the testing phase must be confidential information that you or a Staff. If you do not wish your name and subtracted as well as any time that may third party may not wish to be posted, contact information to be made publicly have occurred before the patent was such as medical information, your or available, you can provide this issued), FDA’s determination of the anyone else’s Social Security number, or information on the cover sheet and not length of a regulatory review period for confidential business information, such in the body of your comments and you a medical device will include all of the as a manufacturing process. Please note must identify this information as testing phase and approval phase as that if you include your name, contact ‘‘confidential.’’ Any information marked specified in 35 U.S.C. 156(g)(3)(B). information, or other information that as ‘‘confidential’’ will not be disclosed FDA has approved for marketing the identifies you in the body of your except in accordance with § 10.20 (21 medical device AXONICS SACRAL comments, that information will be CFR 10.20) and other applicable NEUROMODULATION SYSTEM. posted on https://www.regulations.gov. disclosure law. For more information AXONICS SACRAL • If you want to submit a comment about FDA’s posting of comments to NEUROMODULATION SYSTEM is with confidential information that you public dockets, see 80 FR 56469, indicated for treatment of chronic fecal do not wish to be made available to the September 18, 2015, or access the incontinence in patients who have public, submit the comment as a information at: https:// failed or are not candidates for more written/paper submission and in the www.govinfo.gov/content/pkg/FR-2015- conservative treatments. Subsequent to manner detailed (see ‘‘Written/Paper 09-18/pdf/2015-23389.pdf. this approval, the USPTO received a Submissions’’ and ‘‘Instructions’’). Docket: For access to the docket to patent term restoration application for read background documents or the AXONICS SACRAL Written/Paper Submissions electronic and written/paper comments NEUROMODULATION SYSTEM (U.S. Submit written/paper submissions as received, go to https:// Patent No. 7,331,499) from Alfred E. follows: www.regulations.gov and insert the Mann Foundation for Scientific

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Research, and the USPTO requested comments and, under 21 CFR 60.24, ask reporting and recordkeeping of adverse FDA’s assistance in determining this for a redetermination (see DATES). experiences for drug and biological patent’s eligibility for patent term Furthermore, as specified in § 60.30 (21 products. restoration. In a letter dated July 14, CFR 60.30), any interested person may DATES: Submit either electronic or 2020, FDA advised the USPTO that this petition FDA for a determination written comments on the collection of medical device had undergone a regarding whether the applicant for information by August 30, 2021. regulatory review period and that the extension acted with due diligence ADDRESSES: You may submit comments approval of AXONICS SACRAL during the regulatory review period. To as follows. Please note that late, NEUROMODULATION SYSTEM meet its burden, the petition must untimely filed comments will not be represented the first permitted comply with all the requirements of considered. Electronic comments must § 60.30, including but not limited to: commercial marketing or use of the be submitted on or before August 30, Must be timely (see DATES), must be product. Thereafter, the USPTO 2021. The https://www.regulations.gov filed in accordance with § 10.20, must requested that FDA determine the electronic filing system will accept contain sufficient facts to merit an FDA product’s regulatory review period. comments until 11:59 p.m. Eastern Time investigation, and must certify that a II. Determination of Regulatory Review at the end of August 30, 2021. true and complete copy of the petition Comments received by mail/hand Period has been served upon the patent delivery/courier (for written/paper FDA has determined that the applicant. (See H. Rept. 857, part 1, 98th submissions) will be considered timely applicable regulatory review period for Cong., 2d sess., pp. 41–42, 1984.) if they are postmarked or the delivery AXONICS SACRAL Petitions should be in the format service acceptance receipt is on or NEUROMODULATION SYSTEM is 681 specified in 21 CFR 10.30. before that date. days. Of this time, 494 days occurred Submit petitions electronically to during the testing phase of the https://www.regulations.gov at Docket Electronic Submissions regulatory review period, while 187 No. FDA–2013–S–0610. Submit written Submit electronic comments in the days occurred during the approval petitions (two copies are required) to the following way: phase. These periods of time were Dockets Management Staff (HFA–305), • Federal eRulemaking Portal: derived from the following dates: Food and Drug Administration, 5630 https://www.regulations.gov. Follow the 1. The date an exemption for this Fishers Lane, Rm. 1061, Rockville, MD instructions for submitting comments. device, under section 520(g) of the 20852. Comments submitted electronically, Federal Food, Drug, and Cosmetic Act Dated: June 25, 2021. including attachments, to https:// (FD&C Act) (21 U.S.C. 360j(g)), became Lauren K. Roth, www.regulations.gov will be posted to effective: October 27, 2017. FDA has Acting Principal Associate Commissioner for the docket unchanged. Because your verified the applicant’s claim that the Policy. comment will be made public, you are date the investigational device [FR Doc. 2021–13972 Filed 6–29–21; 8:45 am] solely responsible for ensuring that your exemption (IDE) for human tests to BILLING CODE 4164–01–P comment does not include any begin, as required under section 520(g) confidential information that you or a of the FD&C Act, became effective third party may not wish to be posted, October 27, 2017. DEPARTMENT OF HEALTH AND such as medical information, your or 2. The date an application was HUMAN SERVICES anyone else’s Social Security number, or initially submitted with respect to the confidential business information, such device under section 515 of the FD&C Food and Drug Administration as a manufacturing process. Please note Act (21 U.S.C. 360e): March 4, 2019. [Docket No. FDA–2021–N–0515] that if you include your name, contact The applicant claims March 1, 2019, as information, or other information that the date the premarket approval Agency Information Collection identifies you in the body of your application (PMA) for AXONICS Activities; Proposed Collection; comments, that information will be SACRAL NEUROMODULATION Comment Request; Postmarketing posted on https://www.regulations.gov. SYSTEM (PMA 190006) was initially Adverse Experience Reporting and • If you want to submit a comment submitted. However, FDA records Recordkeeping for Drug and Biological with confidential information that you indicate that PMA 190006 was Products do not wish to be made available to the submitted on March 4, 2019. public, submit the comment as a 3. The date the application was AGENCY: Food and Drug Administration, written/paper submission and in the approved: September 6, 2019. FDA has HHS. manner detailed (see ‘‘Written/Paper verified the applicant’s claim that PMA ACTION: Notice. Submissions’’ and ‘‘Instructions’’). 190006 was approved on September 6, 2019. SUMMARY: The Food and Drug Written/Paper Submissions This determination of the regulatory Administration (FDA, Agency, or we) is Submit written/paper submissions as review period establishes the maximum announcing an opportunity for public follows: potential length of a patent extension. comment on the proposed collection of • Mail/Hand delivery/Courier (for However, the USPTO applies several certain information by the Agency. written/paper submissions): Dockets statutory limitations in its calculations Under the Paperwork Reduction Act of Management Staff (HFA–305), Food and of the actual period for patent extension. 1995 (PRA), Federal Agencies are Drug Administration, 5630 Fishers In its application for patent extension, required to publish notice in the Lane, Rm. 1061, Rockville, MD 20852. this applicant seeks 434 days of patent Federal Register concerning each • For written/paper comments term extension. proposed collection of information, submitted to the Dockets Management including each proposed extension of an Staff, FDA will post your comment, as III. Petitions existing collection of information, and well as any attachments, except for Anyone with knowledge that any of to allow 60 days for public comment in information submitted, marked and the dates as published are incorrect may response to the notice. This notice identified, as confidential, if submitted submit either electronic or written solicits comments on postmarketing as detailed in ‘‘Instructions.’’

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Instructions: All submissions received SUPPLEMENTARY INFORMATION: Under the experiences (15-day ‘‘Alert reports’’), as must include the Docket No. FDA– PRA (44 U.S.C. 3501–3521), Federal well as followup reports (§ 314.80(c)(1)) 2021–N–0515 for ‘‘Postmarketing Agencies must obtain approval from the to FDA. This includes reports of all Adverse Experience Reporting and Office of Management and Budget foreign or domestic adverse experiences Recordkeeping for Drug and Biological (OMB) for each collection of as well as those based on information Products.’’ Received comments, those information they conduct or sponsor. from applicable scientific literature and filed in a timely manner (see ‘‘Collection of information’’ is defined certain reports from postmarketing ADDRESSES), will be placed in the docket in 44 U.S.C. 3502(3) and 5 CFR studies. Section 314.80(c)(1)(iii) pertains and, except for those submitted as 1320.3(c) and includes Agency requests to such reports submitted by ‘‘Confidential Submissions,’’ publicly or requirements that members of the nonapplicants. viewable at https://www.regulations.gov public submit reports, keep records, or Under § 314.80(c)(2), applicants must or at the Dockets Management Staff provide information to a third party. provide periodic reports of adverse drug between 9 a.m. and 4 p.m., Monday Section 3506(c)(2)(A) of the PRA (44 experiences. For the reporting interval, through Friday, 240–402–7500. U.S.C. 3506(c)(2)(A)) requires Federal a periodic report includes reports of • Confidential Submissions—To Agencies to provide a 60-day notice in serious, expected adverse drug submit a comment with confidential the Federal Register concerning each experiences, all nonserious adverse drug information that you do not wish to be proposed collection of information, experiences, and an index of these made publicly available, submit your including each proposed extension of an reports; a narrative summary and comments only as a written/paper existing collection of information, analysis of adverse drug experiences; an submission. You should submit two before submitting the collection to OMB analysis of the 15-day Alert reports copies total. One copy will include the for approval. To comply with this submitted during the reporting interval; information you claim to be confidential requirement, FDA is publishing notice and a history of actions taken because with a heading or cover note that states of the proposed collection of of adverse drug experiences. Under ‘‘THIS DOCUMENT CONTAINS information set forth in this document. § 314.80(j), applicants must keep for 10 CONFIDENTIAL INFORMATION.’’ The With respect to the following years records of all adverse drug Agency will review this copy, including collection of information, FDA invites experience reports known to the the claimed confidential information, in comments on these topics: (1) Whether applicant. its consideration of comments. The the proposed collection of information For marketed prescription drug second copy, which will have the is necessary for the proper performance products without approved new drug claimed confidential information of FDA’s functions, including whether applications (NDAs) or abbreviated new redacted/blacked out, will be available the information will have practical drug applications (ANDAs), manufacturers, packers, and distributors for public viewing and posted on utility; (2) the accuracy of FDA’s are required to report to FDA serious, https://www.regulations.gov. Submit estimate of the burden of the proposed unexpected adverse drug experiences as both copies to the Dockets Management collection of information, including the well as followup reports (§ 310.305(c)). Staff. If you do not wish your name and validity of the methodology and Section 310.305(c)(5) pertains to the contact information to be made publicly assumptions used; (3) ways to enhance submission of followup reports to available, you can provide this the quality, utility, and clarity of the reports forwarded to the manufacturers, information on the cover sheet and not information to be collected; and (4) packers, and distributors by FDA. Under in the body of your comments and you ways to minimize the burden of the § 310.305(g), each manufacturer, packer, must identify this information as collection of information on and distributor shall maintain for 10 respondents, including through the use ‘‘confidential.’’ Any information marked years records of all adverse drug of automated collection techniques, as ‘‘confidential’’ will not be disclosed experiences required to be reported. except in accordance with 21 CFR 10.20 when appropriate, and other forms of Section 760 of the FD&C Act (21 and other applicable disclosure law. For information technology. U.S.C. 379aa) also provides for more information about FDA’s posting Postmarketing Adverse Experience mandatory safety reporting for over-the- of comments to public dockets, see 80 Reporting and Recordkeeping for Drug counter (OTC) human drug products not FR 56469, September 18, 2015, or access and Biologics Products subject to applications approved under the information at: https:// section 505 of the FD&C Act (21 U.S.C. www.govinfo.gov/content/pkg/FR-2015- OMB Control Number 0910–0230— 355) (NDAs or ANDAs). These 09-18/pdf/2015-23389.pdf. Extension requirements apply to all OTC drug Docket: For access to the docket to This information collection supports products marketed without an approved read background documents or the statutory provisions set forth in the application, including those marketed electronic and written/paper comments Federal Food, Drug, and Cosmetic Act under the OTC Drug Monograph Review received, go to https:// (FD&C Act) regarding the monitoring of process (whether or not subject to a final www.regulations.gov and insert the FDA-regulated products. Specifically, monograph), those marketed outside the docket number, found in brackets in the FDA must be promptly informed of monograph system, and including those heading of this document, into the adverse experiences associated with the that have been discontinued from ‘‘Search’’ box and follow the prompts use of marketed drugs, including human marketing but for which a report of an and/or go to the Dockets Management drugs and biological products. adverse event was received. Under 21 Staff, 5630 Fishers Lane, Rm. 1061, Regulations in §§ 310.305 and 314.80 CFR 329.100, respondents must submit Rockville, MD 20852, 240–402–7500. (21 CFR 310.305 and 314.80) implement reports according to section 760 of the FOR FURTHER INFORMATION CONTACT: reporting and recordkeeping FD&C Act in an electronic format. Domini Bean, Office of Operations, requirements that enable FDA to take To assist respondents with Food and Drug Administration, Three action to protect the public health from implementation of section 760 of the White Flint North, 10A–12M, 11601 adverse drug experiences. All applicants FD&C Act, FDA developed the guidance Landsdown St., North Bethesda, MD who have received marketing approval for industry entitled ‘‘Postmarketing 20852, 301–796–5733, PRAStaff@ for drug products are required to report Adverse Event Reporting for fda.hhs.gov. serious, unexpected adverse drug Nonprescription Human Drug Products

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Marketed Without an Approved labeling (such as adding a new are currently approved in OMB control Application,’’ available at https:// warning), to make decisions about risk number 0910–0771; however, it is being www.fda.gov/media/77193/download. evaluation and mitigation strategies or consolidated with this information The guidance document discusses what the need for postmarketing studies or collection for administrative efficiency. should be included in a serious adverse clinical trials and, when necessary, to Similarly, the information collection drug event report submitted under initiate removal of a product from the accounts for burden that may be section 760(b)(1) of the FD&C Act, market. applicable to the guidance document, including how to submit these reports In addition, this information ‘‘Postmarketing Adverse Event and followup reports under section collection includes an International Reporting for Medical Products and 760(c)(2) of the FD&C Act. Council for Harmonisation (ICH) Dietary Supplements During a Section 760(e) of the FD&C Act also guidance for industry entitled Pandemic,’’ available at https:// requires that responsible persons ‘‘Providing Postmarketing Periodic www.fda.gov/media/72498/download. maintain records of nonprescription Safety Reports in the ICH E2C(R2) In response to the Coronavirus Disease drug adverse event reports, whether the Format (Periodic Benefit-Risk 2019 public health emergency, we event is serious or not, for a period of Evaluation Report),’’ available at https:// revised the Agency guidance document, 6 years. FDA’s guidance recommends www.fda.gov/media/85520/download. ‘‘, to provide recommendations for that respondents maintain records of The guidance describes the conditions recordkeeping applicable to any efforts to obtain the minimum data under which applicants may use the pandemic, not just influenza, including elements for a report of a serious ICH3 E2C(R2) Periodic Benefit-Risk recommendations for planning, adverse drug event and any followup Evaluation Report format for certain notification, and documentation for reports. types of adverse event reporting. FDA continuity of operations for firms that The primary purpose of FDA’s regulations in §§ 314.80(c)(2) and report postmarketing adverse events adverse drug experience reporting 600.80(c)(2) (21 CFR 600.80(c)(2)) during any pandemic. system is to enable identification of require applicants to submit Respondents to this collection of signals for potentially serious safety postmarketing periodic safety reports for information are (1) manufacturers, problems with marketed drugs. each approved application. The reports packers, distributors, and applicants of Although premarket testing discloses a must be submitted quarterly for the first FDA-regulated drug and biologic general safety profile of a new drug’s 3 years following the U.S. approval date products; (2) manufacturers, packers, comparatively common adverse effects, and annually thereafter and must and distributors of marketed the larger and more diverse patient contain the information described in prescription drug products without an populations exposed to the marketed §§ 314.80(c)(2)(ii) and 600.80(c)(2)(ii) FDA-approved application; and (3) drug provide the opportunity to collect (the information collection associated manufacturers, packers, and distributors information on rare, latent, and long- with 21 CFR part 600—Biological of marketed nonprescription drug term effects. Signals are obtained from Products, is approved under OMB products, including OTC drug products a variety of sources, including reports control number 0910–0308). The marketed without an approved from patients, treating physicians, Agency guidance assists respondents application, OTC drug products foreign regulatory agencies, and clinical with satisfying the regulatory marketed under the OTC Drug investigators. Information derived from requirements in an alternative format, Monograph Review process (whether the adverse drug experience reporting noting that the process differs subject to a final monograph or not), and system contributes directly to increased depending on whether an applicable drug products marketed outside the public health protection because the periodic safety update report (PSUR) monograph system. information enables FDA to make waiver is in place. The information FDA estimates the burden of this important changes to the product’s collection burden for waivers of a PSUR collection of information as follows:

TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

Number of Average 21 CFR section or type Number of responses per Total annual burden per Total hours of respondent and activity respondents respondent responses response

310.305(c)(5) ...... 3 1 3 1 3 314.80(c)(1)(iii) ...... 5 1 5 1 5 314.80(c)(2) ...... 820 17.32 14,202 60 852,120 Reports of serious adverse drug events (§ 329.100) ...... 285 690 196,650 6 1,179,900 Applicants that have a PSUR waiver for an approved application ...... 55 3.4 187 1 187 Applicants that do not have a PSUR waiver for an approved application ...... 29 2.3 67 2 134 Notifying FDA when normal reporting is not feasible ...... 350 1 350 8 2,800

Total 2 ...... 211,464 ...... 2,035,149 1 The reporting burden for §§ 310.305(c)(1), (2), and (3), and 314.80(c)(1)(i) and (ii) is covered under OMB control number 0910–0645. 2 The capital costs or operating and maintenance costs associated with this collection of information are approximately $25,000 annually.

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TABLE 2—ESTIMATED ANNUAL RECORDKEEPING BURDEN 1

Number of Average 21 CFR section or FD&C Act Number of records per Total annual burden per Total hours section and activity recordkeepers recordkeeper records recordkeeping

310.305 ...... 25 1 25 16 400 314.80(j) ...... 325 2,025 658,240 16 10,531,840 Recordkeeping of nonprescription drug adverse event reports (Section 760(e)(1) of the FD&C Act) ...... 300 885.6667 265,700 8 2,125,600 Adding Adverse Event report planning to Continuity of Op- erations Plans ...... 100 1 100 50 5,000 Maintaining documentation of pandemic conditions and re- sultant high absenteeism ...... 350 1 350 8 2,800 Maintaining records to identify what reports have been stored and when the reporting process was restored ..... 350 1 350 8 2,800

Total 2 ...... 924,765 ...... 12,668,440 1 There are no capital costs or operating costs associated with this collection of information. 2 There are maintenance costs of approximately $22,000 annually.

The information collection reflects Furthermore, any interested person may • If you want to submit a comment adjustments resulting in an overall petition FDA for a determination with confidential information that you decrease in burden hours and an regarding whether the applicant for do not wish to be made available to the increase in annual responses. We extension acted with due diligence public, submit the comment as a believe these adjustments reflect during the regulatory review period by written/paper submission and in the expected fluctuations in burden and December 27, 2021. See ‘‘Petitions’’ in manner detailed (see ‘‘Written/Paper invite comment on our assumptions. the SUPPLEMENTARY INFORMATION section Submissions’’ and ‘‘Instructions’’). for more information. Dated: June 25, 2021. Written/Paper Submissions Lauren K. Roth, ADDRESSES: You may submit comments as follows. Please note that late, Submit written/paper submissions as Acting Principal Associate Commissioner for follows: Policy. untimely filed comments will not be considered. Electronic comments must • Mail/Hand delivery/Courier (for [FR Doc. 2021–13968 Filed 6–29–21; 8:45 am] written/paper submissions): Dockets BILLING CODE 4164–01–P be submitted on or before August 30, 2021. The https://www.regulations.gov Management Staff (HFA–305), Food and electronic filing system will accept Drug Administration, 5630 Fishers comments until 11:59 p.m. Eastern Time Lane, Rm. 1061, Rockville, MD 20852. DEPARTMENT OF HEALTH AND • HUMAN SERVICES at the end of August 30, 2021. For written/paper comments Comments received by mail/hand submitted to the Dockets Management Food and Drug Administration delivery/courier (for written/paper Staff, FDA will post your comment, as well as any attachments, except for [Docket No. FDA–2020–E–2184] submissions) will be considered timely if they are postmarked or the delivery information submitted, marked. and Determination of Regulatory Review service acceptance receipt is on or identified, as confidential, if submitted Period for Purposes of Patent before that date. as detailed in ‘‘Instructions.’’ Extension; FETROJA Instructions: All submissions received Electronic Submissions must include the Docket No. FDA– AGENCY: Food and Drug Administration, Submit electronic comments in the 2020–E–2184 for Determination of Health and Human Services (HHS). following way: Regulatory Review Period for Purposes ACTION: Notice. • Federal eRulemaking Portal: of Patent Extension; FETROJA. Received https://www.regulations.gov. Follow the comments, those filed in a timely SUMMARY: The Food and Drug instructions for submitting comments. manner (see ADDRESSES), will be placed Administration (FDA or the Agency) has Comments submitted electronically, in the docket and, except for those determined the regulatory review period including attachments, to https:// submitted as ‘‘Confidential for FETROJA and is publishing this www.regulations.gov will be posted to Submissions,’’ publicly viewable at notice of that determination as required the docket unchanged. Because your https://www.regulations.gov or at the by law. FDA has made the comment will be made public, you are Dockets Management Staff between 9 determination because of the solely responsible for ensuring that your a.m. and 4 p.m., Monday through submission of an application to the comment does not include any Friday, 240–402–7500. Director of the U.S. Patent and confidential information that you or a • Confidential Submissions—To Trademark Office (USPTO), Department third party may not wish to be posted, submit a comment with confidential of Commerce, for the extension of a such as medical information, your or information that you do not wish to be patent which claims that human drug anyone else’s Social Security number, or made publicly available, submit your product. confidential business information, such comments only as a written/paper DATES: Anyone with knowledge that any as a manufacturing process. Please note submission. You should submit two of the dates as published (see the that if you include your name, contact copies total. One copy will include the SUPPLEMENTARY INFORMATION section) are information, or other information that information you claim to be confidential incorrect may submit either electronic identifies you in the body of your with a heading or cover note that states or written comments and ask for a comments, that information will be ‘‘THIS DOCUMENT CONTAINS redetermination by August 30, 2021. posted on https://www.regulations.gov. CONFIDENTIAL INFORMATION.’’ The

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Agency will review this copy, including effective and runs until the approval the date the investigational new drug the claimed confidential information, in phase begins. The approval phase starts application (IND) became effective. its consideration of comments. The with the initial submission of an However, FDA records indicate that the second copy, which will have the application to market the human drug IND effective date was April 21, 2013, claimed confidential information product and continues until FDA grants which was 30 days after FDA receipt of redacted/blacked out, will be available permission to market the drug product. the IND. for public viewing and posted on Although only a portion of a regulatory 2. The date the application was https://www.regulations.gov. Submit review period may count toward the both copies to the Dockets Management actual amount of extension that the initially submitted with respect to the Staff. If you do not wish your name and Director of USPTO may award (for human drug product under section 505 contact information to be made publicly example, half the testing phase must be of the FD&C Act: December 14, 2018. available, you can provide this subtracted as well as any time that may The applicant claims February 12, 2019, information on the cover sheet and not have occurred before the patent was as the date the new drug application in the body of your comments and you issued), FDA’s determination of the (NDA) for FETROJA (NDA 209445) was must identify this information as length of a regulatory review period for initially submitted. However, FDA ‘‘confidential.’’ Any information marked a human drug product will include all records indicate that NDA 209445 was as ‘‘confidential’’ will not be disclosed of the testing phase and approval phase submitted on December 14, 2018. except in accordance with § 10.20 (21 as specified in 35 U.S.C. 156(g)(1)(B). 3. The date the application was FDA has approved for marketing the CFR 10.20) and other applicable approved: November 14, 2019. FDA has human drug product, FETROJA disclosure law. For more information verified the applicant’s claim that NDA about FDA’s posting of comments to (cefiderocol sulfate tosylate) indicated for patients 18 years of age or older for 209445 was approved on November 14, public dockets, see 80 FR 56469, 2019. September 18, 2015, or access the the treatment of the following infections information at: https:// caused by susceptible Gram-negative This determination of the regulatory microorganisms: review period establishes the maximum www.govinfo.gov/content/pkg/FR-2015- • 09-18/pdf/2015-23389.pdf. Complicated urinary tract potential length of a patent extension. Docket: For access to the docket to infections, including pyelonephritis and However, the USPTO applies several • hospital-acquired bacterial read background documents or the statutory limitations in its calculations pneumonia and ventilator-associated electronic and written/paper comments of the actual period for patent extension. bacterial pneumonia. To reduce the received, go to https:// In its application for patent extension, development of drug-resistant bacteria www.regulations.gov and insert the this applicant seeks 726 days of patent and maintain the effectiveness of docket number, found in brackets in the term extension. FETROJA and other antibacterial drugs, heading of this document, into the FETROJA should be used only to treat ‘‘Search’’ box and follow the prompts III. Petitions or prevent infections that are proven or and/or go to the Dockets Management strongly suspected to be caused by Anyone with knowledge that any of Staff, 5630 Fishers Lane, Rm. 1061, bacteria. Subsequent to this approval, the dates as published are incorrect may Rockville, MD 20852, 240–402–7500. the USPTO received a patent term submit either electronic or written FOR FURTHER INFORMATION CONTACT: restoration application for FETROJA comments and, under 21 CFR 60.24, ask Beverly Friedman, Office of Regulatory (U.S. Patent No. 9,238,657) from for a redetermination (see DATES). Policy, Food and Drug Administration, Shionogi & Co., Ltd. and the USPTO Furthermore, as specified in § 60.30 (21 10903 New Hampshire Ave., Bldg. 51, requested FDA’s assistance in CFR 60.30), any interested person may Rm. 6250, Silver Spring, MD 20993, determining the patent’s eligibility for petition FDA for a determination 301–796–3600. patent term restoration. In a letter dated regarding whether the applicant for SUPPLEMENTARY INFORMATION: December 14, 2020, FDA advised the extension acted with due diligence I. Background USPTO that this human drug product during the regulatory review period. To had undergone a regulatory review meet its burden, the petition must The Drug Price Competition and period and that the approval of Patent Term Restoration Act of 1984 comply with all the requirements of FETROJA represented the first § 60.30, including but not limited to: (Pub. L. 98–417) and the Generic permitted commercial marketing or use Animal Drug and Patent Term Must be timely (see DATES), must be of the product. Thereafter, the USPTO filed in accordance with § 10.20, must Restoration Act (Pub. L. 100–670) requested that FDA determine the contain sufficient facts to merit an FDA generally provide that a patent may be product’s regulatory review period. extended for a period of up to 5 years investigation, and must certify that a so long as the patented item (human II. Determination of Regulatory Review true and complete copy of the petition drug product, animal drug product, Period has been served upon the patent medical device, food additive, or color FDA has determined that the applicant. (See H. Rept. 857, part 1, 98th additive) was subject to regulatory applicable regulatory review period for Cong., 2d sess., pp. 41–42, 1984.) review by FDA before the item was FETROJA is 2,400 days. Of this time, Petitions should be in the format marketed. Under these acts, a product’s 2,064 days occurred during the testing specified in 21 CFR 10.30. regulatory review period forms the basis phase of the regulatory review period, Submit petitions electronically to for determining the amount of extension while 336 days occurred during the https://www.regulations.gov at Docket an applicant may receive. approval phase. These periods of time No. FDA–2013–S–0610. Submit written A regulatory review period consists of were derived from the following dates: petitions (two copies are required) to the two periods of time: A testing phase and 1. The date an exemption under Dockets Management Staff (HFA–305), an approval phase. For human drug section 505(i) of the Federal Food, Drug, Food and Drug Administration, 5630 products, the testing phase begins when and Cosmetic Act (FD&C Act) (21 U.S.C. the exemption to permit the clinical 355(i)) became effective: April 21, 2013. Fishers Lane, Rm. 1061, Rockville, MD investigations of the drug becomes The applicant claims March 22, 2013, as 20852.

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Dated: June 23, 2021. • Federal eRulemaking Portal: Agency will review this copy, including Lauren K. Roth, https://www.regulations.gov. Follow the the claimed confidential information, in Acting Principal Associate Commissioner for instructions for submitting comments. its consideration of comments. The Policy. Comments submitted electronically, second copy, which will have the [FR Doc. 2021–13971 Filed 6–29–21; 8:45 am] including attachments, to https:// claimed confidential information BILLING CODE 4164–01–P www.regulations.gov will be posted to redacted/blacked out, will be available the docket unchanged. Because your for public viewing and posted on comment will be made public, you are https://www.regulations.gov. Submit DEPARTMENT OF HEALTH AND solely responsible for ensuring that your both copies to the Dockets Management HUMAN SERVICES comment does not include any Staff. If you do not wish your name and confidential information that you or a contact information to be made publicly Food and Drug Administration third party may not wish to be posted, available, you can provide this such as medical information, your or [Docket No. FDA–2020–E–1900] information on the cover sheet and not anyone else’s Social Security number, or in the body of your comments and you Determination of Regulatory Review confidential business information, such must identify this information as Period for Purposes of Patent as a manufacturing process. Please note ‘‘confidential.’’ Any information marked Extension; BALVERSA that if you include your name, contact as ‘‘confidential’’ will not be disclosed information, or other information that except in accordance with § 10.20 (21 AGENCY: Food and Drug Administration, identifies you in the body of your CFR 10.20) and other applicable Health and Human Services (HHS). comments, that information will be disclosure law. For more information ACTION: Notice. posted on https://www.regulations.gov. about FDA’s posting of comments to • If you want to submit a comment public dockets, see 80 FR 56469, SUMMARY: The Food and Drug with confidential information that you September 18, 2015, or access the Administration (FDA or the Agency) has do not wish to be made available to the information at: https:// determined the regulatory review period public, submit the comment as a www.govinfo.gov/content/pkg/FR-2015- for BALVERSA and is publishing this written/paper submission and in the 09-18/pdf/2015-23389.pdf. notice of that determination as required manner detailed (see ‘‘Written/Paper Docket: For access to the docket to by law. FDA has made the Submissions’’ and ‘‘Instructions’’). read background documents or the determination because of the Written/Paper Submissions electronic and written/paper comments submission of an application to the received, go to https:// Submit written/paper submissions as Director of the U.S. Patent and www.regulations.gov and insert the follows: Trademark Office (USPTO), Department docket number, found in brackets in the • Mail/Hand delivery/Courier (for of Commerce, for the extension of a heading of this document, into the written/paper submissions): Dockets patent which claims that human drug ‘‘Search’’ box and follow the prompts Management Staff (HFA–305), Food and product. and/or go to the Dockets Management Drug Administration, 5630 Fishers Staff, 5630 Fishers Lane, Rm. 1061, DATES: Anyone with knowledge that any Lane, Rm. 1061, Rockville, MD 20852. of the dates as published (see the • For written/paper comments Rockville, MD 20852, 240–402–7500. SUPPLEMENTARY INFORMATION section) are submitted to the Dockets Management FOR FURTHER INFORMATION CONTACT: incorrect may submit either electronic Staff, FDA will post your comment, as Beverly Friedman, Office of Regulatory or written comments and ask for a well as any attachments, except for Policy, Food and Drug Administration, redetermination by August 30, 2021. information submitted, marked and 10903 New Hampshire Ave., Bldg. 51, Furthermore, any interested person may identified, as confidential, if submitted Rm. 6250, Silver Spring, MD 20993, petition FDA for a determination as detailed in ‘‘Instructions.’’ 301–796–3600. regarding whether the applicant for Instructions: All submissions received SUPPLEMENTARY INFORMATION: extension acted with due diligence must include the Docket No. FDA– during the regulatory review period by 2020–E–1900 for ‘‘Determination of I. Background December 27, 2021. See ‘‘Petitions’’ in Regulatory Review Period for Purposes The Drug Price Competition and the SUPPLEMENTARY INFORMATION section of Patent Extension; BALVERSA.’’ Patent Term Restoration Act of 1984 for more information. Received comments, those filed in a (Pub. L. 98–417) and the Generic ADDRESSES: You may submit comments timely manner (see ADDRESSES), will be Animal Drug and Patent Term as follows. Please note that late, placed in the docket and, except for Restoration Act (Pub. L. 100–670) untimely filed comments will not be those submitted as ‘‘Confidential generally provide that a patent may be considered. Electronic comments must Submissions,’’ publicly viewable at extended for a period of up to 5 years be submitted on or before August 30, https://www.regulations.gov or at the so long as the patented item (human 2021. The https://www.regulations.gov Dockets Management Staff between 9 drug product, animal drug product, electronic filing system will accept a.m. and 4 p.m., Monday through medical device, food additive, or color comments until 11:59 p.m. Eastern Time Friday, 240–402–7500. additive) was subject to regulatory at the end of August 30, 2021. • Confidential Submissions—To review by FDA before the item was Comments received by mail/hand submit a comment with confidential marketed. Under these acts, a product’s delivery/courier (for written/paper information that you do not wish to be regulatory review period forms the basis submissions) will be considered timely made publicly available, submit your for determining the amount of extension if they are postmarked or the delivery comments only as a written/paper an applicant may receive. service acceptance receipt is on or submission. You should submit two A regulatory review period consists of before that date. copies total. One copy will include the two periods of time: A testing phase and information you claim to be confidential an approval phase. For human drug Electronic Submissions with a heading or cover note that states products, the testing phase begins when Submit electronic comments in the ‘‘THIS DOCUMENT CONTAINS the exemption to permit the clinical following way: CONFIDENTIAL INFORMATION.’’ The investigations of the drug becomes

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effective and runs until the approval became effective: April 26, 2013. FDA has DEPARTMENT OF HEALTH AND phase begins. The approval phase starts verified the applicant’s claim that the date HUMAN SERVICES with the initial submission of an the investigational new drug application application to market the human drug became effective was on April 26, 2013. Food and Drug Administration product and continues until FDA grants 2. The date the application was initially permission to market the drug product. submitted with respect to the human drug [Docket No. FDA–2020–N–1207] Although only a portion of a regulatory product under section 505 of the FD&C Act: review period may count toward the September 18, 2018. FDA has verified the Agency Information Collection actual amount of extension that the applicant’s claim that the new drug Activities; Submission for Office of Director of USPTO may award (for application (NDA) for BALVERSA (NDA Management and Budget Review; example, half the testing phase must be 212018) was initially submitted on Comment Request; New Plant Varieties subtracted as well as any time that may September 18, 2018. Intended for Food Use have occurred before the patent was 3. The date the application was approved: issued), FDA’s determination of the April 12, 2019. FDA has verified the AGENCY: Food and Drug Administration, length of a regulatory review period for applicant’s claim that NDA 212018 was HHS. a human drug product will include all approved on April 12, 2019. ACTION: Notice. of the testing phase and approval phase This determination of the regulatory as specified in 35 U.S.C. 156(g)(1)(B). SUMMARY: The Food and Drug review period establishes the maximum FDA has approved for marketing the Administration (FDA, Agency, or we) is human drug product, BALVERSA potential length of a patent extension. announcing that a proposed collection (erdafitinib) indicated for the treatment However, the USPTO applies several of information has been submitted to the of adult patients with locally advanced statutory limitations in its calculations Office of Management and Budget or metastatic urothelial carcinoma that of the actual period for patent extension. (OMB) for review and clearance under has susceptible FGFR3 or FGFR2 genetic In its application for patent extension, the Paperwork Reduction Act of 1995. alterations and progressed during or this applicant seeks 691 days of patent DATES: Submit written comments following at least one line of prior term extension. (including recommendations) on the platinum-containing chemotherapy collection of information by July 30, including within 12 months of III. Petitions 2021. neoadjuvant or adjuvant platinum- Anyone with knowledge that any of containing chemotherapy. Patients are the dates as published are incorrect may ADDRESSES: To ensure that comments on selected for therapy based on an FDA- submit either electronic or written the information collection are received, approved companion diagnostic for comments and, under 21 CFR 60.24, ask OMB recommends that written BALVERSA. This indication is comments be submitted to https:// for a redetermination (see DATES). approved under accelerated approval www.reginfo.gov/public/do/PRAMain. Furthermore, as specified in § 60.30 (21 based on tumor response rate. Find this particular information CFR 60.30), any interested person may Continued approval for this indication collection by selecting ‘‘Currently under may be contingent upon verification and petition FDA for a determination Review—Open for Public Comments’’ or description of clinical benefit in regarding whether the applicant for by using the search function. The OMB confirmatory trials. Subsequent to this extension acted with due diligence control number for this information approval, the USPTO received a patent during the regulatory review period. To collection is 0910–0583. Also include term restoration application for meet its burden, the petition must the FDA docket number found in BALVERSA (U.S. Patent No. 8,895,601) comply with all the requirements of brackets in the heading of this from Astex Therapeutics Ltd. and the § 60.30, including but not limited to: document. USPTO requested FDA’s assistance in Must be timely (see DATES), must be determining the patent’s eligibility for filed in accordance with § 10.20, must FOR FURTHER INFORMATION CONTACT: patent term restoration. In a letter dated contain sufficient facts to merit an FDA Domini Bean, Office of Operations, January 4, 2021, FDA advised the investigation, and must certify that a Food and Drug Administration, Three USPTO that this human drug product true and complete copy of the petition White Flint North, 10A–12M, 11601 had undergone a regulatory review has been served upon the patent Landsdown St., North Bethesda, MD period and that the approval of applicant. (See H. Rept. 857, part 1, 98th 20852, 301–796–5733, PRAStaff@ fda.hhs.gov. BALVERSA represented the first Cong., 2d sess., pp. 41–42, 1984.) permitted commercial marketing or use Petitions should be in the format SUPPLEMENTARY INFORMATION: In of the product. Thereafter, the USPTO specified in 21 CFR 10.30. compliance with 44 U.S.C. 3507, FDA requested that FDA determine the has submitted the following proposed product’s regulatory review period. Submit petitions electronically to https://www.regulations.gov at Docket collection of information to OMB for II. Determination of Regulatory Review No. FDA–2013–S–0610. Submit written review and clearance. Period petitions (two copies are required) to the New Plant Varieties Intended for Food FDA has determined that the Dockets Management Staff (HFA–305), Use applicable regulatory review period for Food and Drug Administration, 5630 OMB Control Number 0910–0583— BALVERSA is 2,179 days. Of this time, Fishers Lane, Rm. 1061, Rockville, MD Revision 1,972 days occurred during the testing 20852. phase of the regulatory review period, This information collection supports Dated: June 22, 2021. while 207 days occurred during the recommendations found in Agency approval phase. These periods of time Lauren K. Roth, guidance pertaining to new plant were derived from the following dates: Acting Principal Associate Commissioner for varieties intended for food use. Policy. 1. The date an exemption under section Respondents to the collection of 505(i) of the Federal Food, Drug, and [FR Doc. 2021–13973 Filed 6–29–21; 8:45 am] information are developers of new plant Cosmetic Act (FD&C Act) (21 U.S.C. 355(i)) BILLING CODE 4164–01–P varieties intended for food use.

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I. Consultation Procedures: Foods II. Early Food Safety Evaluation of New Nutrition (CFSAN). Form FDA 3666 is Derived From New Plant Varieties; Non-Pesticidal Proteins Produced by entitled ‘‘Early Food Safety Evaluation Form FDA 3665 New Plant Varieties Intended for Food of a New Non-Pesticidal Protein Use; Form FDA 3666 Produced by a New Plant Variety (New The Agency guidance document Since May 29, 1992, when we issued Protein Consultation)’’ and may be used entitled ‘‘Guidance on Consultation a policy statement on foods derived in lieu of a cover letter for a New Procedures: Foods Derived From New from new plant varieties, including Protein Consultation (NPC). The form Plant Varieties,’’ which is available on those varieties that are developed may be accessed at FDA’s web page for our website at https://www.fda.gov/ through biotechnology, we have forms (https://www.fda.gov/about-fda/ FoodGuidances, describes our encouraged developers of new plant reports-manuals-forms/forms) using the consultation process for the evaluation varieties to consult with us early in the search term ‘‘3666.’’ To enable field- of information on new plant varieties development process to discuss possible fillable functionality of FDA forms, they provided by developers. We believe this scientific and regulatory issues that must be downloaded. Form FDA 3666 consultation process will help ensure might arise (57 FR 22984). The guidance prompts a submitter to include certain that human and animal food safety entitled ‘‘Recommendations for the elements of an NPC in a standard format issues or other regulatory issues (e.g., Early Food Safety Evaluation of New and helps the respondent organize their labeling) are resolved prior to Non-Pesticidal Proteins Produced by submission to focus on the information commercial distribution. Additionally, New Plant Varieties Intended for Food needed for our safety review. The form, such communication will help to ensure Use’’ (https://www.fda.gov/regulatory- and elements prepared as attachments that any potential food safety issues information/search-fda-guidance- to the form, may be prepared using the regarding a new plant variety are documents/guidance-industry- CFSAN Online Submission Module resolved during development and will recommendations-early-food-safety- (https://www.fda.gov/food/registration- help to ensure that all market entry evaluation-new-non-pesticidal-proteins- food-facilities-and-other-submissions/ decisions by the industry are made produced) continues to foster early cfsan-online-submission-module-cosm). consistently and in full compliance with communication by encouraging Once the submission is prepared, it may the standards of the Federal Food, Drug, developers to submit to us their be submitted in electronic format via the and Cosmetic Act (FD&C Act). evaluation of the food safety of their Electronic Submissions Gateway Since 1992, when FDA issued its new proteins. Such communication (https://www.fda.gov/industry/ ‘‘Statement of Policy: Foods Derived helps to ensure that any potential food electronic-submissions-gateway), paper From New Plant Varieties’’ (the 1992 safety issues regarding a new protein in format, or as electronic files on physical policy) (57 FR 22984, May 29, 1992), we a new plant variety are resolved early in media with paper signature page. have encouraged developers of new development, prior to any possible In the Federal Register of November plant varieties, including those varieties inadvertent introduction into the food 23, 2020 (85 FR 74734), we published a that are developed through supply of the new protein. 60-day notice requesting public biotechnology, to consult with FDA We believe that any food safety comment on information collection during the plant development process to concern related to such material associated with the guidance document discuss possible scientific and entering the food supply would be ‘‘Recommendations for the Early Food regulatory issues that might arise. In the limited to the potential that a new Safety Evaluation of New Non-Pesticidal 1992 policy, we explained that under protein in food from the plant variety Proteins Produced by New Plant the FD&C Act developers of new foods could cause an allergic reaction in Varieties Intended for Food Use.’’ No (in this document food refers to both susceptible individuals or could be a comments were received. human and animal food) have a toxin. The guidance describes the In the Federal Register of March 4, responsibility to ensure that the foods procedures for early food safety 2021 (86 FR 12688), we published a 60- they offer to consumers are safe and in evaluation of new proteins produced by day notice requesting public comment compliance with all requirements of the new plant varieties, including on information collection associated FD&C Act (57 FR 22984 at 22985). bioengineered food plants, and the with the guidance document ‘‘Early Respondents may use Form FDA 3665, procedures for communicating with us Food Safety Evaluation of New Non- submitted via the Electronic about the safety evaluation. Pesticidal Proteins Produced by New Submissions Gateway (https:// Interested persons may use Form FDA Plant Varieties Intended for Food Use.’’ www.fda.gov/industry/electronic- 3666 to transmit their submission to the No comments were received. submissions-gateway), to request Office of Food Additive Safety in the We estimate the burden of the consultation. Center for Food Safety and Applied information collection as follows:

TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

Number of Average Agency guidance recommendations; Form FDA No. Number of responses per Total annual burden per Total hours information collection responses respondent responses response

Consultation Procedures: Foods Derived From New Plant Varieties

Initial consultation ...... None 20 2 40 4 160 Final consultation ...... 3665 12 1 12 150 1,800

Early Food Safety Evaluation of New Non-Pesticidal Proteins Produced by New Plant Varieties Intended for Food Use

First four data components ...... 3666 6 1 6 4 24 Two other data components ...... 3666 6 1 6 16 96

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TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1—Continued

Number of Average Agency guidance recommendations; Form FDA No. Number of responses per Total annual burden per Total hours information collection responses respondent responses response

Total ...... 64 ...... 2,080 1There are no capital costs or operating and maintenance costs associated with this collection of information.

For efficiency of Agency operations, December 27, 2021. See ‘‘Petitions’’ in • For written/paper comments we are consolidating these related the SUPPLEMENTARY INFORMATION section submitted to the Dockets Management information collections. We retain our for more information. Staff, FDA will post your comment, as estimate of burden associated with the ADDRESSES: You may submit comments well as any attachments, except for individual collection activities but have as follows. Please note that late, information submitted, marked, and increased burden in OMB control untimely filed comments will not be identified, as confidential, if submitted number 0910–0583 by 52 responses and considered. Electronic comments must as detailed in ‘‘Instructions.’’ 1,960 hours annually to reflect the be submitted on or before August 30, Instructions: All submissions received reorganization of the information 2021. The https://www.regulations.gov must include the Docket Nos. FDA– collection. Upon OMB approval of our electronic filing system will accept 2020–E–2192; FDA–2020–E–2194; and request, we intend to discontinue OMB comments until 11:59 p.m. Eastern Time FDA–2020–E–2195, for ‘‘Determination control number 0910–0704. at the end of August 30, 2021. of Regulatory Review Period for Dated: June 24, 2021. Comments received by mail/hand Purposes of Patent Extension; OXBRYTA.’’ Received comments, those Lauren K. Roth, delivery/courier (for written/paper filed in a timely manner (see Acting Principal Associate Commissioner for submissions) will be considered timely ADDRESSES), will be placed in the docket Policy. if they are postmarked or the delivery and, except for those submitted as [FR Doc. 2021–13953 Filed 6–29–21; 8:45 am] service acceptance receipt is on or before that date. ‘‘Confidential Submissions,’’ publicly BILLING CODE 4164–01–P viewable at https://www.regulations.gov Electronic Submissions or at the Dockets Management Staff DEPARTMENT OF HEALTH AND Submit electronic comments in the between 9 a.m. and 4 p.m., Monday through Friday, 240–402–7500. HUMAN SERVICES following way: • • Federal eRulemaking Portal: Confidential Submissions—To Food and Drug Administration https://www.regulations.gov. Follow the submit a comment with confidential instructions for submitting comments. information that you do not wish to be [Docket Nos. FDA–2020–E–2192; FDA– made publicly available, submit your 2020–E–2194; FDA–2020–E–2195] Comments submitted electronically, including attachments, to https:// comments only as a written/paper Determination of Regulatory Review www.regulations.gov will be posted to submission. You should submit two Period for Purposes of Patent the docket unchanged. Because your copies total. One copy will include the Extension; OXBRYTA comment will be made public, you are information you claim to be confidential solely responsible for ensuring that your with a heading or cover note that states AGENCY: Food and Drug Administration, comment does not include any ‘‘THIS DOCUMENT CONTAINS HHS. confidential information that you or a CONFIDENTIAL INFORMATION.’’ The ACTION: Notice. third party may not wish to be posted, Agency will review this copy, including such as medical information, your or the claimed confidential information, in SUMMARY: The Food and Drug anyone else’s Social Security number, or its consideration of comments. The Administration (FDA or the Agency) has second copy, which will have the determined the regulatory review period confidential business information, such as a manufacturing process. Please note claimed confidential information for OXBRYTA and is publishing this redacted/blacked out, will be available notice of that determination as required that if you include your name, contact information, or other information that for public viewing and posted on by law. FDA has made the https://www.regulations.gov. Submit determination because of the identifies you in the body of your comments, that information will be both copies to the Dockets Management submission of applications to the Staff. If you do not wish your name and Director of the U.S. Patent and posted on https://www.regulations.gov. • If you want to submit a comment contact information to be made publicly Trademark Office (USPTO), Department with confidential information that you available, you can provide this of Commerce, for the extension of a do not wish to be made available to the information on the cover sheet and not patent which claims that human drug public, submit the comment as a in the body of your comments and you product. written/paper submission and in the must identify this information as DATES: Anyone with knowledge that any manner detailed (see ‘‘Written/Paper ‘‘confidential.’’ Any information marked of the dates as published (see Submissions’’ and ‘‘Instructions’’). as ‘‘confidential’’ will not be disclosed SUPPLEMENTARY INFORMATION) are except in accordance with § 10.20 (21 incorrect may submit either electronic Written/Paper Submissions CFR 10.20) and other applicable or written comments and ask for a Submit written/paper submissions as disclosure law. For more information redetermination by August 30, 2021. follows: about FDA’s posting of comments to Furthermore, any interested person may • Mail/Hand delivery/Courier (for public dockets, see 80 FR 56469, petition FDA for a determination written/paper submissions): Dockets September 18, 2015, or access the regarding whether the applicant for Management Staff (HFA–305), Food and information at: https:// extension acted with due diligence Drug Administration, 5630 Fishers www.govinfo.gov/content/pkg/FR-2015- during the regulatory review period by Lane, Rm. 1061, Rockville, MD 20852. 09-18/pdf/2015-23389.pdf.

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Docket: For access to the docket to Nos. 9,018,210, 10,017,491, and meet its burden, the petition must read background documents or the 10,034,879) from Global Blood comply with all the requirements of electronic and written/paper comments Therapeutics, Inc., and the USPTO § 60.30, including but not limited to: received, go to https:// requested FDA’s assistance in Must be timely (see DATES), must be www.regulations.gov and insert the determining the patents’ eligibility for filed in accordance with § 10.20, must docket number, found in brackets in the patent term restoration. In a letter dated contain sufficient facts to merit an FDA heading of this document, into the December 14, 2020, FDA advised the investigation, and must certify that a ‘‘Search’’ box and follow the prompts USPTO that this human drug product true and complete copy of the petition and/or go to the Dockets Management had undergone a regulatory review has been served upon the patent Staff, 5630 Fishers Lane, Rm. 1061, period and that the approval of applicant. (See H. Rept. 857, part 1, 98th Rockville, MD 20852, 240–402–7500. OXBRYTA represented the first Cong., 2d sess., pp. 41–42, 1984.) FOR FURTHER INFORMATION CONTACT: permitted commercial marketing or use Petitions should be in the format Beverly Friedman, Office of Regulatory of the product. Thereafter, the USPTO specified in 21 CFR 10.30. Policy, Food and Drug Administration, requested that FDA determine the Submit petitions electronically to 10903 New Hampshire Ave., Bldg. 51, product’s regulatory review period. https://www.regulations.gov at Docket Rm. 6250, Silver Spring, MD 20993, II. Determination of Regulatory Review No. FDA–2013–S–0610. Submit written 301–796–3600. Period petitions (two copies are required) to the SUPPLEMENTARY INFORMATION: Dockets Management Staff (HFA–305), FDA has determined that the Food and Drug Administration, 5630 I. Background applicable regulatory review period for Fishers Lane, Rm. 1061, Rockville, MD OXBRYTA is 1,847 days. Of this time, The Drug Price Competition and 20852. 1,694 days occurred during the testing Patent Term Restoration Act of 1984 phase of the regulatory review period, Dated: June 23, 2021. (Pub. L. 98–417) and the Generic while 153 days occurred during the Lauren K. Roth, Animal Drug and Patent Term approval phase. These periods of time Acting Principal Associate Commissioner for Restoration Act (Pub. L. 100–670) were derived from the following dates: Policy. generally provide that a patent may be 1. The date an exemption under [FR Doc. 2021–13976 Filed 6–29–21; 8:45 am] extended for a period of up to 5 years section 505(i) of the Federal Food, Drug, BILLING CODE 4164–01–P so long as the patented item (human and Cosmetic Act (FD&C Act) (21 U.S.C. drug product, animal drug product, 355(i)) became effective: November 6, medical device, food additive, or color 2014. FDA has verified the applicant’s DEPARTMENT OF HEALTH AND additive) was subject to regulatory claims that the date the investigational HUMAN SERVICES review by FDA before the item was new drug application became effective marketed. Under these acts, a product’s was on November 6, 2014. Food and Drug Administration regulatory review period forms the basis 2. The date the application was [Docket Nos. FDA–2020–E–1259; FDA– for determining the amount of extension initially submitted with respect to the 2020–E–1264; and FDA–2020–E–1265] an applicant may receive. human drug product under section 505 A regulatory review period consists of of the FD&C Act: June 26, 2019. FDA Determination of Regulatory Review two periods of time: A testing phase and has verified the applicant’s claims that Period for Purposes of Patent an approval phase. For human drug the new drug application (NDA) for Extension; POLIVY products, the testing phase begins when OXBRYTA (NDA 213137) was initially AGENCY: Food and Drug Administration, the exemption to permit the clinical submitted on June 26, 2019. investigations of the drug becomes 3. The date the application was HHS. effective and runs until the approval approved: November 25, 2019. FDA has ACTION: Notice. phase begins. The approval phase starts verified the applicant’s claims that NDA SUMMARY: The Food and Drug with the initial submission of an 213137 was approved on November 25, Administration (FDA or the Agency) has application to market the human drug 2019. product and continues until FDA grants This determination of the regulatory determined the regulatory review period permission to market the drug product. review period establishes the maximum for POLIVY and is publishing this Although only a portion of a regulatory potential length of a patent extension. notice of that determination as required review period may count toward the However, the USPTO applies several by law. FDA has made the actual amount of extension that the statutory limitations in its calculations determination because of the Director of USPTO may award (for of the actual period for patent extension. submission of applications to the example, half the testing phase must be In its applications for patent extension, Director of the U.S. Patent and subtracted as well as any time that may this applicant seeks 318 days, 329 days, Trademark Office (USPTO), Department have occurred before the patent was or 332 days of patent term extension. of Commerce, for the extension of issued), FDA’s determination of the patents which claims that human length of a regulatory review period for III. Petitions biological product. a human drug product will include all Anyone with knowledge that any of DATES: Anyone with knowledge that any of the testing phase and approval phase the dates as published are incorrect may of the dates as published (see as specified in 35 U.S.C. 156(g)(1)(B). submit either electronic or written SUPPLEMENTARY INFORMATION) are FDA has approved for marketing the comments and, under 21 CFR 60.24, ask incorrect may submit either electronic human drug product, OXBRYTA for a redetermination (see DATES). or written comments and ask for a (voxelotor) indicated for the treatment Furthermore, as specified in § 60.30 (21 redetermination by August 30, 2021. of sickle cell disease in adults and CFR 60.30), any interested person may Furthermore, any interested person may pediatric patients 12 years of age and petition FDA for a determination petition FDA for a determination older. Subsequent to this approval, the regarding whether the applicant for regarding whether the applicant for USPTO received patent term restoration extension acted with due diligence extension acted with due diligence applications for OXBRYTA (U.S. Patent during the regulatory review period. To during the regulatory review period by

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December 27, 2021. See ‘‘Petitions’’ in FDA–2020–E–1265 for ‘‘Determination I. Background the SUPPLEMENTARY INFORMATION section of Regulatory Review Period for for more information. Purposes of Patent Extension; POLIVY.’’ The Drug Price Competition and Patent Term Restoration Act of 1984 ADDRESSES: You may submit comments Received comments, those filed in a as follows. Please note that late, timely manner (see ADDRESSES), will (Pub. L. 98–417) and the Generic untimely filed comments will not be be placed in the docket and, except for Animal Drug and Patent Term considered. Electronic comments must those submitted as ‘‘Confidential Restoration Act (Pub. L. 100–670) be submitted on or before August 30, Submissions,’’ publicly viewable at generally provide that a patent may be 2021. The https://www.regulations.gov https://www.regulations.gov or at the extended for a period of up to 5 years electronic filing system will accept Dockets Management Staff between 9 so long as the patented item (human comments until 11:59 p.m. Eastern Time a.m. and 4 p.m., Monday through drug product, animal drug product, at the end of August 30, 2021. Friday, 240–402–7500. medical device, food additive, or color additive) was subject to regulatory Comments received by mail/hand • Confidential Submissions—To review by FDA before the item was delivery/courier (for written/paper submit a comment with confidential marketed. Under these acts, a product’s submissions) will be considered timely information that you do not wish to be regulatory review period forms the basis if they are postmarked or the delivery made publicly available, submit your for determining the amount of extension service acceptance receipt is on or comments only as a written/paper an applicant may receive. before that date. submission. You should submit two A regulatory review period consists of Electronic Submissions copies total. One copy will include the information you claim to be confidential two periods of time: A testing phase and Submit electronic comments in the with a heading or cover note that states an approval phase. For human following way: ‘‘THIS DOCUMENT CONTAINS biological products, the testing phase • Federal eRulemaking Portal: CONFIDENTIAL INFORMATION.’’ The begins when the exemption to permit https://www.regulations.gov. Follow the Agency will review this copy, including the clinical investigations of the instructions for submitting comments. the claimed confidential information, in biological product becomes effective Comments submitted electronically, its consideration of comments. The and runs until the approval phase including attachments, to https:// second copy, which will have the begins. The approval phase starts with www.regulations.gov will be posted to claimed confidential information the initial submission of an application the docket unchanged. Because your redacted/blacked out, will be available to market the human biological product comment will be made public, you are for public viewing and posted on and continues until FDA grants solely responsible for ensuring that your https://www.regulations.gov. Submit permission to market the biological comment does not include any both copies to the Dockets Management product. Although only a portion of a confidential information that you or a Staff. If you do not wish your name and regulatory review period may count third party may not wish to be posted, contact information to be made publicly toward the actual amount of extension such as medical information, your or available, you can provide this that the Director of USPTO may award anyone else’s Social Security number, or information on the cover sheet and not (for example, half the testing phase must confidential business information, such in the body of your comments and you be subtracted as well as any time that as a manufacturing process. Please note must identify this information as may have occurred before the patent that if you include your name, contact ‘‘confidential.’’ Any information marked was issued), FDA’s determination of the information, or other information that as ‘‘confidential’’ will not be disclosed length of a regulatory review period for identifies you in the body of your except in accordance with § 10.20 (21 a human biological product will include comments, that information will be CFR 10.20) and other applicable all of the testing phase and approval posted on https://www.regulations.gov. phase as specified in 35 U.S.C. • disclosure law. For more information If you want to submit a comment 156(g)(1)(B). with confidential information that you about FDA’s posting of comments to do not wish to be made available to the public dockets, see 80 FR 56469, FDA has approved for marketing the public, submit the comment as a September 18, 2015, or access the human biologic product POLIVY written/paper submission and in the information at: https:// (polatuzumab vedotin-piiq). POLIVY is manner detailed (see ‘‘Written/Paper www.govinfo.gov/content/pkg/FR-2015- indicated in combination with Submissions’’ and ‘‘Instructions’’). 09-18/pdf/2015-23389.pdf. bendamustine and a rituximab product Docket: For access to the docket to for the treatment of adult patients with Written/Paper Submissions read background documents or the relapsed or refractory diffuse large B- Submit written/paper submissions as electronic and written/paper comments cell lymphoma, not otherwise specified, follows: received, go to https:// after at least two prior therapies. • Mail/Hand delivery/Courier (for www.regulations.gov and insert the Subsequent to this approval, the USPTO written/paper submissions): Dockets docket number, found in brackets in the received patent term restoration Management Staff (HFA–305), Food and heading of this document, into the applications for POLIVY (U.S. Patent Drug Administration, 5630 Fishers ‘‘Search’’ box and follow the prompts Nos. 8,088,378; 8,545,850; and Lane, Rm. 1061, Rockville, MD 20852. and/or go to the Dockets Management 8,691,531) from Genentech, Inc., and the • For written/paper comments Staff, 5630 Fishers Lane, Rm. 1061, USPTO requested FDA’s assistance in submitted to the Dockets Management Rockville, MD 20852, 240–402–7500. determining this patents’ eligibility for Staff, FDA will post your comment, as patent term restoration. In a letter dated FOR FURTHER INFORMATION CONTACT: well as any attachments, except for May 8, 2020, FDA advised the USPTO Beverly Friedman, Office of Regulatory information submitted, marked and that this human biological product had Policy, Food and Drug Administration, identified, as confidential, if submitted undergone a regulatory review period 10903 New Hampshire Ave., Bldg. 51, as detailed in ‘‘Instructions.’’ and that the approval of POLIVY Instructions: All submissions received Rm. 6250, Silver Spring, MD 20993, represented the first permitted must include the Docket Nos. FDA– 301–796–3600. commercial marketing or use of the 2020–E–1259; FDA–2020–E–1264; and SUPPLEMENTARY INFORMATION: product. Thereafter, the USPTO

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requested that FDA determine the Petitions should be in the format DEPARTMENT OF HEALTH AND product’s regulatory review period. specified in 21 CFR 10.30. HUMAN SERVICES Submit petitions electronically to II. Determination of Regulatory Review National Institutes of Health Period https://www.regulations.gov at Docket No. FDA–2013–S–0610. Submit written FDA has determined that the Center for Scientific Review; Notice of petitions (two copies are required) to the Closed Meetings applicable regulatory review period for Dockets Management Staff (HFA–305), POLIVY is 3,050 days. Of this time, Food and Drug Administration, 5630 Pursuant to section 10(d) of the 2,876 days occurred during the testing Fishers Lane, Rm. 1061, Rockville, MD Federal Advisory Committee Act, as phase of the regulatory review period, 20852. amended, notice is hereby given of the while 174 days occurred during the following meetings. approval phase. These periods of time Dated: June 23, 2021. The meetings will be closed to the were derived from the following dates: Lauren K. Roth, public in accordance with the 1. The date an exemption under Acting Principal Associate Commissioner for provisions set forth in sections section 505(i) of the Federal Food, Drug, Policy. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., and Cosmetic Act (21 U.S.C. 355(i)) [FR Doc. 2021–13949 Filed 6–29–21; 8:45 am] as amended. The grant applications and became effective: February 4, 2011. FDA BILLING CODE 4164–01–P the discussions could disclose has verified the applicant’s claims that confidential trade secrets or commercial the date the investigational new drug property such as patentable material, application became effective was on DEPARTMENT OF HEALTH AND and personal information concerning February 4, 2011. HUMAN SERVICES individuals associated with the grant 2. The date the application was applications, the disclosure of which initially submitted with respect to the Food and Drug Administration would constitute a clearly unwarranted human biological product under section invasion of personal privacy. 351 of the Public Health Service Act (42 [Docket No. FDA–2021–P–0424] Name of Committee: Center for Scientific U.S.C. 262): December 19, 2018. FDA Review Special Emphasis Panel; PAR Panel: has verified the applicant’s claim that Medical Devices; Exemption From Transgender People: Immunity, Prevention, the biologics license application (BLA) Premarket Notification: Powered and Treatment of HIV and STIs. for POLIVY (BLA 761121) was initially Patient Transport, All Other Powered Date: July 26, 2021. submitted on December 19, 2018. Patient Transport Time: 2:00 p.m. to 5:00 p.m. 3. The date the application was Agenda: To review and evaluate grant applications. approved: June 10, 2019. FDA has AGENCY: Food and Drug Administration, Place: National Institutes of Health, verified the applicant’s claim that BLA HHS. Rockledge II, 6701 Rockledge Drive, 761121 was approved on June 10, 2019. ACTION: Notice; correction. Bethesda, MD 20892 (Virtual Meeting). This determination of the regulatory Contact Person: David C. Chang, Ph.D., review period establishes the maximum Scientific Review Officer, Center for potential length of a patent extension. SUMMARY: The Food and Drug Scientific Review, National Institutes of However, the USPTO applies several Administration (FDA) is correcting a Health, 6701 Rockledge Drive, Bethesda, MD statutory limitations in its calculations notice announcing receipt of a petition 20892, (301) 451–0290, changdac@ of the actual period for patent extension. requesting exemption from the mail.nih.gov. In its applications for patent extension, premarket notification requirements. Name of Committee: Center for Scientific this applicant seeks 1,032 days, 1,127 The document was published with an Review Special Emphasis Panel; days, or 1,445 days of patent term incorrect docket number. This Fellowships: AIDS and AIDS-Related document corrects that error. Applications. extension. Date: July 27, 2021. III. Petitions FOR FURTHER INFORMATION CONTACT: Dan Time: 11:00 a.m. to 6:00 p.m. Reed, Center for Devices and Agenda: To review and evaluate grant Anyone with knowledge that any of Radiological Health, Food and Drug applications. the dates as published are incorrect may Administration, 10903 New Hampshire Place: National Institutes of Health, submit either electronic or written Ave., Bldg. 66, Rm. 1526, Silver Spring, Rockledge II, 6701 Rockledge Drive, comments and, under 21 CFR 60.24, ask MD 20993–0002, 240–402–4717. Bethesda, MD 20892 (Virtual Meeting). for a redetermination (see DATES). Contact Person: Kristen Prentice, Ph.D., Furthermore, as specified in § 60.30 (21 SUPPLEMENTARY INFORMATION: In the Scientific Review Officer, Center for Federal Register of June 15, 2021 (86 FR Scientific Review, National Institutes of CFR 60.30), any interested person may Health, 6701 Rockledge Drive, Room 3112, petition FDA for a determination 31722), in FR Doc. 2021–12505, on page 31722, the following correction is made: MSC 7808, Bethesda, MD 20892, (301) 496– regarding whether the applicant for 0726, [email protected]. extension acted with due diligence On page 31722, in the second column, Name of Committee: Center for Scientific during the regulatory review period. To in the header of the document, and, also Review Special Emphasis Panel; UNITE meet its burden, the petition must on page 31723, in the first column Transformative Research to Address Health comply with all the requirements of under ‘‘Instructions,’’ ‘‘Docket No. Disparities and Advance Health Equity (U01). § 60.30, including but not limited to: FDA–2021–N–0493’’ is corrected to read Date: July 27, 2021. Must be timely (see DATES), must be ‘‘Docket No. FDA–2021–P–0424’’. Time: 1:00 p.m. to 5:00 p.m. filed in accordance with § 10.20, must Agenda: To review and evaluate grant Dated: June 25, 2021. contain sufficient facts to merit an FDA applications. Lauren K. Roth, Place: National Institutes of Health, investigation, and must certify that a Rockledge II, 6701 Rockledge Drive, Acting Principal Associate Commissioner for true and complete copy of the petition Bethesda, MD 20892 (Virtual Meeting). Policy. has been served upon the patent Contact Person: Bukhtiar H. Shah, DVM, applicant. (See H. Rept. 857, part 1, 98th [FR Doc. 2021–13967 Filed 6–29–21; 8:45 am] Ph.D., Scientific Review Officer, Vascular Cong., 2d sess., pp. 41–42, 1984.) BILLING CODE 4164–01–P and Hematology IRG, Center for Scientific

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Review, National Institutes of Health, 6701 Time: 1:00 p.m. to 5:00 p.m. Contact Person: Peter B. Guthrie, Ph.D., Rockledge Drive, Room 4120, MSC 7802, Agenda: To review and evaluate grant Scientific Review Officer, Center for Bethesda, MD 20892, (301) 806–7314, applications. Scientific Review, National Institutes of [email protected]. Place: National Institutes of Health, Health, 6701 Rockledge Drive, Room 4142, Name of Committee: Center for Scientific Rockledge II, 6701 Rockledge Drive, MSC 7850, Bethesda, MD 20892, (301) 435– Review Special Emphasis Panel; Member Bethesda, MD 20892 (Virtual Meeting). 1239, [email protected]. Conflict: Topics in Virology. Contact Person: Denise Wiesch, Ph.D., Name of Committee: Center for Scientific Date: July 28, 2021. Scientific Review Officer, Center for Review Special Emphasis Panel; Member Time: 10:00 a.m. to 7:00 p.m. Scientific Review, National Institutes of Conflict: Innate and Adaptive Immunology. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 3138, Date: July 30, 2021. applications. MSC 7770, Bethesda, MD 20892, (301) 437– Time: 10:00 a.m. to 7:00 p.m. Place: National Institutes of Health, 3478, [email protected]. Agenda: To review and evaluate grant Rockledge II, 6701 Rockledge Drive, Name of Committee: Center for Scientific applications. Bethesda, MD 20892 (Virtual Meeting). Review Special Emphasis Panel; UNITE Place: National Institutes of Health, Contact Person: Marci Scidmore, Ph.D., Transformative Research to Address Health Rockledge II, 6701 Rockledge Drive, Scientific Review Officer, Center for Disparities and Advance Health Equity at Bethesda, MD 20892 (Virtual Meeting). Scientific Review, National Institutes of Minority Serving Institutions (U01). Contact Person: Kenneth A. Roebuck, Health, 6701 Rockledge Drive, Room 3192, Date: July 29–30, 2021. Ph.D., Scientific Review Officer, Center for MSC 7808, Bethesda, MD 20892, 301–435– Time: 10:00 a.m. to 4:00 p.m. Scientific Review, National Institutes of 1149, [email protected]. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 5214, Name of Committee: Center for Scientific applications. MSC 7852, Bethesda, MD 20892, (301) 435– Review Special Emphasis Panel; Member Place: National Institutes of Health, 1166, [email protected]. Conflict: HIV Molecular Virology, Cell Rockledge II, 6701 Rockledge Drive, Name of Committee: Center for Scientific Biology, Immune and Therapeutic-Focused Bethesda, MD 20892 (Virtual Meeting). Review Special Emphasis Panel; Topics in Application. Contact Person: Aruna K. Behera, Ph.D., Innate and Adaptive Immunology. Date: July 28, 2021. Scientific Review Officer, Center for Date: July 30, 2021. Time: 10:00 a.m. to 8:00 p.m. Scientific Review, National Institutes of Time: 10:00 a.m. to 7:00 p.m. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 4211, Agenda: To review and evaluate grant applications. MSC 7814, Bethesda, MD 20892, 301–435– applications. Place: National Institutes of Health, 6809, [email protected]. Place: National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Name of Committee: Center for Scientific Rockledge II, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting). Review Special Emphasis Panel; Member Bethesda, MD 20892 (Virtual Meeting). Contact Person: Audrey O. Lau, MPH, Conflict: Topics in Mycology, Parasitology Contact Person: Neerja Kaushik-Basu, Ph.D., Chief Center for Scientific Review, and Pathogenesis. Ph.D., Scientific Review Officer, Center for 6701 Rockledge Drive, Bethesda, MD 20892, Date: July 29, 2021. Scientific Review, National Institutes of (301) 594–4088, [email protected]. Time: 10:00 a.m. to 6:30 p.m. Health, 6701 Rockledge Drive, Room 3198, Name of Committee: Center for Scientific Agenda: To review and evaluate grant MSC 7808, Bethesda, MD 20892, (301) 435– Review Special Emphasis Panel; applications. 1742, [email protected]. Fellowships: Endocrinology, Metabolism, Place: National Institutes of Health, (Catalogue of Federal Domestic Assistance Nutrition and Reproductive Sciences. Rockledge II, 6701 Rockledge Drive, Program Nos. 93.306, Comparative Medicine; Date: July 28, 2021. Bethesda, MD 20892 (Virtual Meeting). 93.333, Clinical Research, 93.306, 93.333, Time: 10:00 a.m. to 5:00 p.m. Contact Person: Kenneth M. Izumi, Ph.D., 93.337, 93.393–93.396, 93.837–93.844, Agenda: To review and evaluate grant Scientific Review Officer, Center for 93.846–93.878, 93.892, 93.893, National applications. Scientific Review, National Institutes of Institutes of Health, HHS) Place: National Institutes of Health, Health, 6701 Rockledge Drive, Room 3204, Dated: June 24, 2021. Rockledge II, 6701 Rockledge Drive, MSC 7808, Bethesda, MD 20892, 301–496– Bethesda, MD 20892 (Virtual Meeting). 6980, [email protected]. Melanie J. Pantoja, Contact Person: Elaine Sierra-Rivera, Ph.D., Name of Committee: Center for Scientific Program Analyst, Office of Federal Advisory IRG Chief, EMNR IRG, Center for Scientific Review Special Emphasis Panel; Member Committee Policy. Review, National Institutes of Health, 6701 Conflict: Topics in Endocrinology and [FR Doc. 2021–13942 Filed 6–29–21; 8:45 am] Rockledge Drive, Room 6182, MSC 7892, Metabolism. BILLING CODE 4140–01–P Bethesda, MD 20892, 301–435–2514, Date: July 29, 2021. [email protected]. Time: 10:30 a.m. to 7:00 p.m. Name of Committee: Center for Scientific Agenda: To review and evaluate grant DEPARTMENT OF HEALTH AND Review Special Emphasis Panel; Member applications. HUMAN SERVICES Conflict: Social Sciences and Chronic and Place: National Institutes of Health, Infectious Disease Epidemiology. Rockledge II, 6701 Rockledge Drive, National Institutes of Health Date: July 28, 2021. Bethesda, MD 20892 (Virtual Meeting). Time: 11:00 a.m. to 5:00 p.m. Contact Person: Liliana N. Berti-Mattera, Scientific Advisory Committee on Agenda: To review and evaluate grant Ph.D., Scientific Review Officer, Center for Alternative Toxicological Methods; applications. Scientific Review, National Institutes of Place: National Institutes of Health, Health, 6701 Rockledge Drive, RM 6158, Announcement of Meeting; Request Rockledge II, 6701 Rockledge Drive, MSC 7890, Bethesda, MD 20892, (301) 827– for Comments Bethesda, MD 20892 (Virtual Meeting). 7609, [email protected]. AGENCY: National Institutes of Health, Contact Person: Lisa Steele, Ph.D., Name of Committee: Center for Scientific HHS. Scientific Review Officer, PSE IRG, Center for Review Special Emphasis Panel; Program ACTION: Notice. Scientific Review, National Institutes of Project: Endocannabinoids as Therapeutic Health, 6701 Rockledge Drive, Room 3139, Targets. SUMMARY: MSC 7770, Bethesda, MD 20892, 301–594– This notice announces the Date: July 29, 2021. next meeting of the Scientific Advisory 6594, [email protected]. Time: 1:00 p.m. to 6:00 p.m. Name of Committee: Center for Scientific Agenda: To review and evaluate grant Committee on Alternative Toxicological Review Special Emphasis Panel; Social applications. Methods (SACATM). SACATM is a Sciences and Chronic and Infectious Disease Place: National Institutes of Health, federally chartered external advisory Epidemiology. Rockledge II, 6701 Rockledge Drive, group of scientists from the public and Date: July 28, 2021. Bethesda, MD 20892 (Virtual Meeting). private sectors, including

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representatives of regulated industry upcoming meeting include: (1) Major Oral Public Comment Registration: and national animal protection ICCVAM accomplishments in 2021; (2) The preliminary agenda allows for organizations. SACATM advises the regulatory needs and research several public comment periods, each Interagency Coordinating Committee on applications for ecotoxicity testing; (3) allowing up to six commenters a the Validation of Alternative Methods evolving approaches to validation; and maximum of five minutes per speaker. (ICCVAM), the National Toxicology (4) update on NICEATM computational Registration for oral comments is on or Program (NTP) Interagency Center for resources. Please see the preliminary before September 17, 2021, at https:// the Evaluation of Alternative agenda for information about specific ntp.niehs.nih.gov/go/32822. Registration Toxicological Methods (NICEATM), and presentations. is on a first-come, first-served basis. the Director of the National Institute of The preliminary agenda, roster of Each organization is allowed one time Environmental Health Sciences (NIEHS) SACATM members, background slot per comment period. After the and NTP regarding statutorily mandated materials, public comments, and any maximum number of speakers per duties of ICCVAM and activities of additional information will be posted comment period is exceeded, NICEATM. This SACATM meeting will when available on the SACATM individuals registering to submit an oral be a virtual meeting only and available meeting website (https:// comment for the topic will be placed on to the public for remote viewing. ntp.niehs.nih.gov/go/32822) or may be a wait list and notified should an Registration is required to access the requested in hardcopy from the opening become available. Commenters virtual meeting and to present oral Designated Federal Official for will be notified after September 17, comments. Information about the SACATM. Following the meeting, 2021, to provide logistical information meeting and registration are available at summary minutes will be prepared and for their presentations. If possible, oral https://ntp.niehs.nih.gov/go/32822. made available on the SACATM public commenters should send a copy DATES: meeting website. of their slides and/or statement or Meeting: September 28, 2021, 10:00 Registration is required to attend the talking points to Robbin Guy by email: a.m.–3:30 p.m. EDT; September 29, virtual meeting and is open to all [email protected] by September 17, 2021, 10:00 a.m.–4:00 p.m. EDT. Ending interested persons. Registrants will 2021. times are approximate; meeting may end receive instructions on how to access Meeting Materials: The preliminary earlier or run later. the virtual meeting in the email meeting agenda will be posted when Registration for Virtual Meeting: confirming their registration. available on the meeting web page at https://ntp.niehs.nih.gov/go/32822 and Deadline is September 29, 2021, 4:00 Individuals who plan to provide oral will be updated one week before the p.m. EDT. comments (see below) are required to meeting. Individuals are encouraged to Written Public Comment register online at the SACATM meeting visit this web page often to stay abreast Submissions: Deadline is September 17, website (https://ntp.niehs.nih.gov/go/ of the most current information 2021. 32822) by September 17, 2021, to Register to Present Oral Comments: regarding the meeting. facilitate planning for the meeting. Responses to this notice are Deadline is September 17, 2021. Individuals are encouraged to visit the Registration to view the virtual voluntary. No proprietary, classified, website often to stay abreast of the most confidential, or sensitive information meeting and present oral public current information regarding the comments is required. should be included in statements meeting. submitted in response to this notice or ADDRESSES: Individuals who plan to attend and presented during the meeting. This Meeting web page: The preliminary need special assistance, such as sign request for input is for planning agenda, registration, and other meeting language interpretation or other purposes only and is not a solicitation materials are at https:// reasonable accommodations, should for applications or an obligation on the ntp.niehs.nih.gov/go/32822. notify Ms. Robbin Guy at phone: (984) part of the U.S. Government to provide Virtual Meeting: The URL for viewing 287–3136 or email: [email protected] support for any ideas identified in the virtual meeting will be provided to in advance of the meeting. TTY users response to the request. Please note that those who register for viewing. should contact the Federal TTY Relay the U.S. Government will not pay for FOR FURTHER INFORMATION CONTACT: Dr. Service at 800–877–8339. Requests the preparation of any information Sheena Scruggs, Designated Federal should be made at least five business submitted or for its use of that Official for SACATM, Office of Policy, days in advance of the event. information. Review, and Outreach, Division of NTP, Written Public Comments: Written Background Information on ICCVAM, NIEHS, P.O. Box 12233, K2–03, and oral public comments are invited NICEATM, and SACATM: ICCVAM is Research Triangle Park, NC 27709. for the agenda topics. Guidelines for an interagency committee composed of Phone: 984–287–3355, Email: public comments are available at representatives from 17 federal [email protected]. Hand Deliver/ https://ntp.niehs.nih.gov/ntp/about_ regulatory and research agencies that Courier address: 530 Davis Drive, Room ntp/guidelines_public_comments_ require, use, generate, or disseminate K2126, Morrisville, NC 27560. 508.pdf. The deadline for submission of toxicological and safety testing SUPPLEMENTARY INFORMATION: written comments is September 17, information. ICCVAM conducts Meeting and Registration: The 2021. Written public comments should technical evaluations of new, revised, meeting is open to the public with time be submitted through the meeting and alternative safety testing methods scheduled for oral public comments. website. Persons submitting written and integrated testing strategies with Due to restrictions on in-person comments should include name, regulatory applicability, and promotes gatherings amid ongoing public health affiliation, mailing address, phone, the scientific validation and regulatory concerns, the meeting will be convened email, and sponsoring organization (if acceptance of testing methods that more as a virtual meeting. any). Written comments received in accurately assess the safety and hazards SACATM will provide input to response to this notice will be posted on of chemicals and products and replace, ICCVAM, NICEATM, and NIEHS on the NTP website, and the submitter will reduce, or refine (enhance animal well- programmatic activities and issues. be identified by name, affiliation, and being and lessen or avoid pain and Preliminary agenda items for the sponsoring organization (if any). distress) animal use.

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The ICCVAM Authorization Act of (SAMHSA) will publish a summary of residential addresses from a list based 2000 (42 U.S.C. 285l–3) establishes information collection requests under on the U.S. Postal Service’s ICCVAM as a permanent interagency OMB review, in compliance with the Computerized Delivery Sequence file. In committee of NIEHS and provides the Paperwork Reduction Act (44 U.S.C. areas with high expected ABS coverage, authority for ICCVAM involvement in Chapter 35). To request a copy of these the ABS frame will be used. In all other activities relevant to the development of documents, call the SAMHSA Reports areas, traditional field enumeration will alternative test methods. Additional Clearance Officer at (240) 276–0361. be used to construct the dwelling unit information about ICCVAM can be frames. found at http://ntp.niehs.nih.gov/go/ Project: 2022 National Survey on Drug iccvam. Use and Health (OMB No. 0930–0110) In addition, the NSDUH questionnaire NICEATM administers ICCVAM, SAMHSA is requesting from the must be updated periodically to reflect provides scientific and operational Office of Management and Budget changing substance use and mental support for ICCVAM-related activities, (OMB) approval to administer the health issues and to continue producing and conducts and publishes analyses National Survey on Drug Use and current data. For the 2022 NSDUH, the and evaluations of data from new, Health (NSDUH), a survey of the U.S. following questionnaire updates are revised, and alternative testing civilian, non-institutionalized planned: (1) Replacing the tobacco approaches. NICEATM and ICCVAM population aged 12 years old or older. module with a redesigned nicotine work collaboratively to evaluate new NSDUH data are used to determine the module that includes questions about and improved testing approaches prevalence of use of tobacco products, vaping, removes low priority items to applicable to the needs of U.S. federal alcohol, illicit substances, and illicit use reduce respondent burden and agencies. NICEATM and ICCVAM of prescription drugs. The results are eliminates outdated terminology; (2) welcome the public nomination of new, used by SAMHSA, the Office of revising the marijuana module to revised, and alternative test methods National Drug Control Policy (ONDCP), include questions about the use of CBD, and strategies for validation studies and federal government agencies, and other update questions on the mode of technical evaluations. Additional organizations and researchers to administration and eliminate outdated information about NICEATM can be establish policy, direct program found at http://ntp.niehs.nih.gov/go/ terminology and includes changes to the activities, and better allocate resources. market information for marijuana niceatm. As certain parts of the United States questions; (3) redesigning the adult and SACATM, established by the ICCVAM reduce COVID–19 restrictions, NSDUH youth mental health services utilization Authorization Act [Section 285l–3(d)], in-person data collection will proceed provides advice on priorities and where possible. However, to ensure modules into one Mental Health Service activities related to the development, sufficient data are collected to produce Utilization model to remove questions validation, scientific review, regulatory nationally representative estimates for with outdated terminology and include acceptance, implementation, and the 2022 survey, NSDUH will continue questions about newer treatments with national and international to employ a mix of in-person and web- recent increases in popularity; and (4) harmonization of new, revised, and based modes of administration to allow replacing the drug treatment module alternative toxicological test methods to those respondents living in areas with with a redesigned alcohol and drug ICCVAM, NICEATM, and Director of COVID–19 restrictions the opportunity treatment module that includes NIEHS and NTP. Additional to participate. If the COVID–19 questions about newer treatments and information about SACATM, including pandemic subsides to such levels to those that have increased in popularity, the charter, roster, and records of past allow in-person data collection to as well as eliminating outdated meetings, can be found at http:// resume nationwide, SAMHSA may terminology and reducing respondent ntp.niehs.nih.gov/go/167. reassess that multimode data collection burden. Dated: June 24, 2021. model as part of the 2022 NSDUH. As with all NSDUH/NHSDA 1 surveys Brian R. Berridge, In those areas where in-person data conducted since 1999, the sample size collection is permitted, NSDUH Associate Director, National Toxicology of the NSDUH main study for 2022 will Program. protocols, processes, and materials will be sufficient to permit prevalence [FR Doc. 2021–13919 Filed 6–29–21; 8:45 am] continue to reflect the need to ensure estimates for each of the fifty states and BILLING CODE 4140–01–P the safety of respondents and field interviewers with respect to COVID– the District of Columbia. The total 19—after initial implementation of such annual burden estimate for the NSDUH DEPARTMENT OF HEALTH AND measures beginning in October 2020— main study is shown below in Table 1. HUMAN SERVICES which include equipping field interviewers with masks, gloves, Substance Abuse and Mental Health disinfecting wipes, and hand sanitizer Services Administration for use during data collection and Agency Information Collection providing a COVID–19 risk information Activities: Submission for OMB form to all respondents. Review; Comment Request Unlike previous NSDUHs, a hybrid address-based sampling (ABS) design 1 Prior to 2002, the NSDUH was referred to as the Periodically, the Substance Abuse and will be implemented for the 2022 National Household Survey on Drug Abuse Mental Health Services Administration NSDUH. ABS refers to the sampling of (NHSDA).

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TABLE 1—ANNUALIZED ESTIMATED BURDEN FOR 2022 NSDUH

Responses Total Total Instrument Number of per number of Hours per burden respondents respondent responses response hours

Household Screening ...... 168,674 1 168,674 0.083 14,000 Interview ...... 67,507 1 67,507 1.000 67,507 Screening Verification ...... 5,060 1 5,060 0.067 339 Interview Verification ...... 10,126 1 10,126 0.067 678

Total ...... 168,674 ...... 251,367 ...... 82,524

Written comments and beginning July 1, 2021, the interest rates on a quarterly basis. The rates effective recommendations for the proposed for overpayments will be 2 percent for for a quarter are determined during the information collection should be sent corporations and 3 percent for non- first-month period of the previous within 30 days of publication of this corporations, and the interest rate for quarter. notice to www.reginfo.gov/public/do/ underpayments will be 3 percent for In Revenue Ruling 2021–10, the IRS PRAMain. Find this particular both corporations and non-corporations. determined the rates of interest for the information collection by selecting This notice is published for the calendar quarter beginning July 1, 2021, ‘‘Currently under 30-day Review—Open convenience of the importing public and ending on September 30, 2021. The for Public Comments’’ or by using the and U.S. Customs and Border Protection interest rate paid to the Treasury for search function. personnel. underpayments will be the Federal Carlos Graham, DATES: The rates announced in this short-term rate (0%) plus three Social Science Analyst. notice are applicable as of July 1, 2021. percentage points (3%) for a total of [FR Doc. 2021–13937 Filed 6–29–21; 8:45 am] FOR FURTHER INFORMATION CONTACT: three percent (3%) for both corporations BILLING CODE 4162–20–P Bruce Ingalls, Revenue Division, and non-corporations. For corporate Collection Refunds & Analysis Branch, overpayments, the rate is the Federal 6650 Telecom Drive, Suite #100, short-term rate (0%) plus two DEPARTMENT OF HOMELAND Indianapolis, Indiana 46278; telephone percentage points (2%) for a total of two SECURITY (317) 298–1107. percent (2%). For overpayments made SUPPLEMENTARY INFORMATION: by non-corporations, the rate is the U.S. Customs and Border Protection Federal short-term rate (0%) plus three Background percentage points (3%) for a total of Quarterly IRS Interest Rates Used in Pursuant to 19 U.S.C. 1505 and three percent (3%). These interest rates Calculating Interest on Overdue Treasury Decision 85–93, published in used to calculate interest on overdue Accounts and Refunds on Customs the Federal Register on May 29, 1985 accounts (underpayments) and refunds Duties (50 FR 21832), the interest rate paid on (overpayments) of customs duties remain the same from the previous AGENCY: U.S. Customs and Border applicable overpayments or quarter. These interest rates are subject Protection, Department of Homeland underpayments of customs duties must to change for the calendar quarter Security. be in accordance with the Internal beginning October 1, 2021, and ending ACTION: General notice. Revenue Code rate established under 26 U.S.C. 6621 and 6622. Section 6621 on December 31, 2021. SUMMARY: This notice advises the public provides different interest rates For the convenience of the importing that the quarterly Internal Revenue applicable to overpayments: One for public and U.S. Customs and Border Service interest rates used to calculate corporations and one for non- Protection personnel, the following list interest on overdue accounts corporations. of IRS interest rates used, covering the (underpayments) and refunds The interest rates are based on the period from July of 1974 to date, to (overpayments) of customs duties will Federal short-term rate and determined calculate interest on overdue accounts remain the same from the previous by the Internal Revenue Service (IRS) on and refunds of customs duties, is quarter. For the calendar quarter behalf of the Secretary of the Treasury published in summary format.

Corporate Underpayments Overpayments overpayments Beginning date Ending date (percent) (percent) (Eff. 1–1–99) (percent)

070174 ...... 063075 6 6 ...... 070175 ...... 013176 9 9 ...... 020176 ...... 013178 7 7 ...... 020178 ...... 013180 6 6 ...... 020180 ...... 013182 12 12 ...... 020182 ...... 123182 20 20 ...... 010183 ...... 063083 16 16 ...... 070183 ...... 123184 11 11 ...... 010185 ...... 063085 13 13 ...... 070185 ...... 123185 11 11 ...... 010186 ...... 063086 10 10 ...... 070186 ...... 123186 9 9 ......

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Corporate Underpayments Overpayments overpayments Beginning date Ending date (percent) (percent) (Eff. 1–1–99) (percent)

010187 ...... 093087 9 8 ...... 100187 ...... 123187 10 9 ...... 010188 ...... 033188 11 10 ...... 040188 ...... 093088 10 9 ...... 100188 ...... 033189 11 10 ...... 040189 ...... 093089 12 11 ...... 100189 ...... 033191 11 10 ...... 040191 ...... 123191 10 9 ...... 010192 ...... 033192 9 8 ...... 040192 ...... 093092 8 7 ...... 100192 ...... 063094 7 6 ...... 070194 ...... 093094 8 7 ...... 100194 ...... 033195 9 8 ...... 040195 ...... 063095 10 9 ...... 070195 ...... 033196 9 8 ...... 040196 ...... 063096 8 7 ...... 070196 ...... 033198 9 8 ...... 040198 ...... 123198 8 7 ...... 010199 ...... 033199 7 7 6 040199 ...... 033100 8 8 7 040100 ...... 033101 9 9 8 040101 ...... 063001 8 8 7 070101 ...... 123101 7 7 6 010102 ...... 123102 6 6 5 010103 ...... 093003 5 5 4 100103 ...... 033104 4 4 3 040104 ...... 063004 5 5 4 070104 ...... 093004 4 4 3 100104 ...... 033105 5 5 4 040105 ...... 093005 6 6 5 100105 ...... 063006 7 7 6 070106 ...... 123107 8 8 7 010108 ...... 033108 7 7 6 040108 ...... 063008 6 6 5 070108 ...... 093008 5 5 4 100108 ...... 123108 6 6 5 010109 ...... 033109 5 5 4 040109 ...... 123110 4 4 3 010111 ...... 033111 3 3 2 040111 ...... 093011 4 4 3 100111 ...... 033116 3 3 2 040116 ...... 033118 4 4 3 040118 ...... 123118 5 5 4 010119 ...... 063019 6 6 5 070119 ...... 063020 5 5 4 070120 ...... 093021 3 3 2

Dated: June 24, 2021. ACTION: 60-Day notice. renew and revise the collection as it Jeffrey Caine, expires on November 30, 2021. The ICR Chief Financial Officer, U.S. Customs and SUMMARY: The Transportation Security describes the nature of the information Border Protection. Administration (TSA) invites public collection and its expected burden, [FR Doc. 2021–13924 Filed 6–29–21; 8:45 am] comment on one currently approved which TSA is seeking to continue its BILLING CODE 9111–14–P Information Collection Request (ICR), collection of critical facility security Office of Management and Budget information. (OMB) control number 1652–0050, DATES: DEPARTMENT OF HOMELAND Send your comments by August abstracted below that we will submit to 30, 2021. SECURITY OMB for a revision in compliance with the Paperwork Reduction Act (PRA). ADDRESSES: Comments may be emailed Transportation Security Administration The ICR addresses a statutory to [email protected] or delivered to the TSA PRA Officer, Information Intent To Request Revision From OMB requirement for TSA to develop and implement a plan to inspect critical Technology (IT), TSA–11, of One Current Public Collection of Transportation Security Administration, Information: Critical Facility pipeline systems. On May 26, 2021, OMB approved TSA’s request for an 6595 Springfield Center Drive, Information of the Top 100 Most Springfield, VA 20598–6011 Critical Pipelines emergency revision of this collection to address the ongoing cybersecurity threat FOR FURTHER INFORMATION CONTACT: AGENCY: Transportation Security to pipeline systems and associated Christina A. Walsh at the above address, Administration, DHS. infrastructure. TSA is now seeking to or by telephone (571) 227–2062.

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SUPPLEMENTARY INFORMATION: collection is voluntary. Information issued a Security Directive (SD) collected from the reviews is analyzed applicable to owner/operators of a Comments Invited and used to determine strengths and hazardous liquid and natural gas In accordance with the Paperwork weaknesses at the nation’s critical pipeline or liquefied natural gas facility Reduction Act of 1995 (44 U.S.C. 3501 pipeline facilities, areas to target for risk notified by TSA that their pipeline et seq.), an agency may not conduct or reduction strategies, pipeline industry system or facility is critical. These sponsor, and a person is not required to implementation of the voluntary owner/operators are required to review respond to, a collection of information guidelines, and the potential need for Section 7 of TSA’s Pipeline Security unless it displays a valid OMB control regulations in accordance with the 9/11 Guidelines and assess current activities, number. The ICR documentation will be Act provision previously cited. using the TSA Pipeline Cybersecurity available at http://www.reginfo.gov TSA visits with pipeline owner/ Self-Assessment form, to address cyber upon its submission to OMB. Therefore, operators to follow up on their risk, and identify remediation measures in preparation for OMB review and implementation of security that will be taken to fill those gaps and approval of the following information improvements and recommendations a timeframe for achieving those collection, TSA is soliciting comments made during facility visits. During measures. The form provided is based to— critical facility visits, TSA documents on the instrument used for the CFSRs, (1) Evaluate whether the proposed and provides recommendations to limited to cybersecurity issues and information requirement is necessary for improve the security posture of the augmented to address the scope of the the proper performance of the functions facility. TSA intends to continue to SD. The critical pipeline owner/ of the agency, including whether the follow up with pipeline owner/ operators are required to report the information will have practical utility; operators via email on their status results of this assessment to TSA within (2) Evaluate the accuracy of the toward implementation of the 30 days of issuance of the SD. In agency’s estimate of the burden; recommendations made during the cooperation with the Cybersecurity and (3) Enhance the quality, utility, and critical facility visits. The follow up will Infrastructure Security Agency, TSA clarity of the information to be be conducted at intervals of six, 12, and will use this information to make a collected; and 18 months after the facility visit. global assessment of the cyber risk (4) Minimize the burden of the TSA previously initiated the PRA posture of the industry. collection of information on those who approval process by publishing a notice TSA is seeking renewal of this are to respond, including using on April 8, 2021, 86 FR 18291, information collection for the maximum appropriate automated, electronic, announcing our intent to conduct this three-year approval period. mechanical, or other technological collection with a revision. Due to the To the extent information provided by collection techniques or other forms of emergency revision of the information operators for each information information technology. collection, TSA is reinitiating the collection is Sensitive Security Information Collection Requirement approval process. Information (SSI), TSA will protect in accordance with procedures meeting the Revision OMB Control Number 1652–0050; transmission, handling, and storage Critical Facility Information of the Top TSA is revising the information requirements of SSI set forth in 49 CFR 100 Most Critical Pipelines: The collection to align the CFSR question set parts 15 and 1520. Implementing Recommendations of the with the revised Pipeline Security TSA estimates the annual hour 9/11 Commission Act of 2007 (9/11 Act) Guidelines, and to capture additional burden for the information collection specifically required TSA to develop criticality criteria. As a result, the related to the voluntary collection of the and implement a plan for reviewing the question set has been edited by CFSR form to be 320 hours. TSA will pipeline security plans and inspecting removing, adding and rewriting several conduct a maximum of 80 facility the critical facilities of the 100 most questions, to meet the Pipeline Security reviews each year, with each review critical pipeline systems.1 Pipeline Guidelines and criticality needs. taking approximately 4 hours (320 = 80 owner/operators determine which Further, TSA is moving the collection × 4). facilities qualify as critical facilities instrument from a PDF format to an TSA estimates the annual hour based on guidance and criteria set forth Excel Workbook format. burden for the information collection related to TSA follow ups on the in the TSA Pipeline Security Guidelines Emergency Revision published in December 2010 and 2011, recommendations based on the above with an update published in April 2021. While the above listed collections are CFSRs made to facility owner/operators To execute the 9/11 Act mandate, TSA voluntary, on May 26, 2021, OMB to be 480 hours. TSA estimates each visits critical pipeline facilities and approved TSA’s request for an owner/operator will spend collects site-specific information from emergency revision of this information approximately 2 hours to submit a pipeline owner/operators on facility collection, allowing for the institution of response to TSA regarding its voluntary security policies, procedures, and mandatory requirements. See ICR implementation of security physical security measures. Reference Number: 202105–1652–002. recommendations made during each TSA collects facility security The revision was necessary as a result critical facility visit. If a maximum of 80 information during the site visits using of the recent ransomware attack on one critical facilities are reviewed each year, a Critical Facility Security Review of the Nation’s top pipeline supplies and TSA follows up with each facility (CFSR) form. The CFSR looks at and other emerging threat information. owner/operator every 6, 12, and 18 individual pipeline facility security In order to address the ongoing months following the visit, the total measures and procedures.2 This cybersecurity threat to pipeline systems annual burden is 480 (80 × 2 x 3) hours. and associated infrastructure, TSA For the mandatory collection, TSA 1 See sec. 1557 of the 9/11 Act, Public Law 110– estimates 100 owner/operators will 53 (121 Stat. 266, 475; Aug. 3, 2007), as codified company-wide security management plans and complete and submit the Pipeline at 6 U.S.C. 1207. practices for pipeline operators. See OMB Control 2 The CFSR differs from a Corporate Security No. 1652–0056 at https://www.reginfo.gov for the Cybersecurity Self-Assessment form. It Review (CSR) conducted by TSA in another PRA approval of information collection for these will take each owner/operator information collection that looks at corporate or CSRs. approximately 6 hours to complete and

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submit this form, for a total of 600 hours Comments Invited • Explosions or fires of a suspicious × (100 6). In accordance with the Paperwork nature affecting pipeline systems, The total estimated burden for the facilities, or assets. Reduction Act of 1995 (44 U.S.C. 3501 • entire information collection is 1,400 et seq.), an agency may not conduct or Actual or suspected attacks on hours annually—320 hours for the CFSR sponsor, and a person is not required to pipeline systems, facilities, or assets. • Bomb threats or weapons of mass form, 480 hours for the respond to, a collection of information destruction threats to pipeline systems, recommendations follow-up procedures, unless it displays a valid OMB control facilities, or assets. and 600 hours for the Pipeline number. The ICR documentation will be Cybersecurity Self-Assessment form. • Theft of pipeline company vehicles, available at http://www.reginfo.gov uniforms, or employee credentials. Dated: June 24, 2021. upon its submission to OMB. Therefore, • Suspicious persons or vehicles Christina A. Walsh, in preparation for OMB review and around pipeline systems, facilities, TSA Paperwork Reduction Act Officer, approval of the following information assets, or right-of-way. Information Technology. collection, TSA is soliciting comments • Suspicious photography or possible [FR Doc. 2021–13884 Filed 6–29–21; 8:45 am] to— surveillance of pipeline systems, BILLING CODE 9110–05–P (1) Evaluate whether the proposed facilities, or assets. information requirement is necessary for • Suspicious phone calls from people the proper performance of the functions asking about the vulnerabilities or DEPARTMENT OF HOMELAND of the agency, including whether the security practices of a pipeline system, SECURITY information will have practical utility; facility, or asset operation. (2) Evaluate the accuracy of the • Suspicious individuals applying for Transportation Security Administration agency’s estimate of the burden; security-sensitive positions in the (3) Enhance the quality, utility, and pipeline company. Intent To Request Extension From clarity of the information to be • OMB of One Current Public Collection Theft or loss of Sensitive Security collected; and Information (SSI) (detailed pipeline of Information: Pipeline Operator (4) Minimize the burden of the Security Information maps, security plans, etc.). collection of information on those who When voluntarily contacting the AGENCY: Transportation Security are to respond, including using TSOC, the Guidelines request pipeline Administration, DHS. appropriate automated, electronic, operators to provide as much of the ACTION: 60-Day notice. mechanical, or other technological following information as possible: collection techniques or other forms of • Name and contact information SUMMARY: The Transportation Security information technology. (email address, telephone number). Administration (TSA) invites public • Information Collection Requirement The time and location of the comment on one currently approved incident, as specifically as possible. Information Collection Request (ICR), OMB Control Number 1652–0055; • A description of the incident or Office of Management and Budget Pipeline Operator Security Information. activity involved. (OMB) control number 1652–0055, In addition to TSA’s broad • Who has been notified and what abstracted below that we will submit to responsibility and authority for actions have been taken. OMB for an extension in compliance ‘‘security in all modes of transportation • The names and/or descriptions of with the Paperwork Reduction Act . . . including security responsibilities persons involved or suspicious parties (PRA). On May 26, 2021, OMB approved . . . over modes of transportation [,]’’ and license plates as appropriate. TSA’s request for an emergency revision see 49 U.S.C. 114, TSA is required to On May 26, 2021, OMB approved of this collection to address the ongoing issue recommendations for pipeline TSA’s request for an emergency revision cybersecurity threat to pipeline systems security measures and conduct of this information collection. See ICR and associated infrastructure. TSA is inspections to assess implementation of Reference Number: 202105–1652–002. now seeking to renew the collection as the recommendations. See sec. 1557 of The revision was required as a result of it expires on November 30, 2021. The the Implementing Recommendations of the recent ransomware attack on one of ICR describes the nature of the the 9/11 Commission Act of 2007, the Nation’s top pipeline supplies and information collection and its expected Public Law 110–53 (August 3, 2007). other emerging threat information. TSA burden. Specifically, the collection Consistent with these requirements, issued a Security Directive (SD) with involves the submission of data TSA produced Pipeline Security requirements for TSA-specified critical concerning pipeline security incidents, Guidelines in December 2010 and 2011, pipeline owner/operators of hazardous appointment of cybersecurity with an update published in April 2021. liquid and natural gas pipelines and coordinators, and coordinators’ contact As the lead Federal agency for liquefied natural gas facilities. The SD information. pipeline security and consistent with its included two new information statutory authorities, TSA needs to be collections. TSA now requires all DATES: Send your comments by August notified of all (1) incidents that may owner/operators subject to the SD’s 30, 2021. indicate a deliberate attempt to disrupt requirements to report cybersecurity ADDRESSES: Comments may be emailed pipeline operations and (2) activities incidents or potential cybersecurity to [email protected] or delivered to that could be precursors to such an incidents on their information and the TSA PRA Officer, Information attempt. The Pipeline Security operational technology systems to the Technology (IT), TSA–11, Guidelines encourage pipeline operators Cybersecurity & Infrastructure Security Transportation Security Administration, to notify the Transportation Security Agency (CISA) within 12 hours of 6595 Springfield Center Drive, Operations Center (TSOC) via phone or discovery using the CISA Reporting Springfield, VA 20598–6011. email as soon as possible if any of the System. In addition, the SD requires FOR FURTHER INFORMATION CONTACT: following incidents occurs or if there is critical pipeline owner/operators to Christina A. Walsh at the above address, other reason to believe that a terrorist appoint cybersecurity coordinators and or by telephone (571) 227–2062. incident may be planned or may have to provide contact information for the SUPPLEMENTARY INFORMATION: occurred: coordinators to TSA. To ensure that

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information reported pursuant to the SD the Paperwork Reduction Act. The Estimated Number of Responses: is identifiable within the system, TSA purpose of this notice is to allow for an 495,676. requires these owners/operators to additional 30 days of public comment. Frequency of Response: On occasion. indicate that they are providing the DATES: Comments Due Date: July 30, Average Hours per Response: .56. information pursuant to the SD. TSA is 2021. Total Estimated Burdens: $843,541. now seeking renewal of this revised ADDRESSES: Interested persons are The public comment period for the information collection for the maximum invited to submit comments regarding notice published on February 8, 2021, three-year approval period. this proposal. Written comments and closed on April 9, 2021. Using the CISA reporting system, TSA recommendations for the proposed expects the mandatory reporting of Summary of Form HUD–92564–CN information collection should be sent pipeline cybersecurity incidents to CISA Comments and HUD Responses: within 30 days of publication of this will occur 20 times per year for each notice to www.reginfo.gov/public/do/ Comment: A commenter expressed pipeline owner/operator, and it will Start Printed Page 15501PRAMain. Find concern that a section of a disclosure take approximately 2 hours to gather the this particular information collection by statement on the form that the qualified appropriate information to submit each selecting ‘‘Currently under 30-day home inspector ‘‘will . . . estimate the incident report. The potential burden to Review—Open for Public Comments’’ or remaining useful life of the major the public for this task is 100 × 20 × 2 by using the search function. systems, equipment, structure and hours = 4,000 hours. finishes’’ does not accurately state the FOR FURTHER INFORMATION CONTACT: TSA estimates that approximately 100 scope of a home inspection and should Colette Pollard, U.S. Department of pipeline owner/operators will report be replaced with ‘‘will. . .report Housing and Urban Development, 451 their cybersecurity manager and systems and components that appear to 7th Street SW, Room 4176, Washington, alternate point of contact information. It be near the end of their service lives’’. DC 20410–5000; telephone 202–402– will take the pipeline owner/operator HUD Response: HUD clarified the approximately 30 minutes (0.50 hour) to 3400 (this is not a toll-free number) or email at [email protected]. statement by incorporating the do so, and the potential burden for this recommended replacement language. × Persons with hearing or speech task is 100 0.50 hour = 50 hours. Comment: A commenter encouraged For non-cybersecurity pipeline impairments may access this number through TTY by calling the toll-free HUD to implement efforts to expand incidents, TSA expects voluntary portals for delivering form HUD–92564– reporting of pipeline security incidents Federal Relay Service at (800) 877–8339. Copies of available documents CN: For Your Protection: Get a Home will occur on an irregular basis. TSA Inspection message as widely as estimates that approximately 32 submitted to OMB may be obtained from Ms. Pollard. possible, by all existing and evolving incidents will be reported annually, methods, to as many prospective SUPPLEMENTARY INFORMATION: This requiring a maximum of 30 minutes homebuyers as possible, and to notice informs the public that HUD is (0.50 hour) to collect, review, and prospective buyers likely to enter the seeking approval from OMB for the submit event information. The potential home buying market in the foreseeable information collection described in burden to the public for this task is future. Section A. The Federal Register notice estimated to be 16 hours. Therefore, the HUD Response: HUD continues to that solicited public comment on the total hour burden to the public for this utilize electronic and digital methods as information collection for a period of 60 information collection request is well as paper versions to disseminate days was published on February 8, 2021 estimated to be 4,000 hours + 50 hours the English and Spanish versions of at 86 FR 8652. + 16 hours = 4,066 hours annually. form HUD 92564–CN, For Your Dated: June 24, 2021. A. Overview of Information Collection Protection: Get a Home Inspection to Christina A. Walsh, Title of Information Collection: prospective home buyers through real TSA Paperwork Reduction Act Officer, Application for Fee or Roster Personnel estate brokers and any conceivable Information Technology. (Appraisers) Designation and Appraisal means. The form is also available in [FR Doc. 2021–13885 Filed 6–29–21; 8:45 am] Reports. English and Spanish on HUD website BILLING CODE 9110–05–P OMB Approval Number: 2502–0538. and is accessible by real estate brokers, Type of Request: Extension. mortgage originators and prospective Form Number: HUD 92563–A, HUD homebuyers. There is no cost associated DEPARTMENT OF HOUSING AND 92564–CN, Fannie Mae Forms: 1004, with accessing the form and the website URBAN DEVELOPMENT 1004C, 1004D, 1004MC, 1025, and 1073. is available 24 hours a day, 7 days per Description of the need for the week. Additionally, HUD has [Docket No. FR–7034–N–35] information and proposed use: Accurate incorporated Form HUD–92564–CN, For Your Protection: Get a Home Inspection 30-Day Notice of Proposed Information and thorough Appraisal reporting is into its origination and processing Collection: Application for Roster critical in determining eligibility of a policy described in the Single Family Personnel (Appraisers) Designation property that will be collateral for FHA- Housing Policy Handbook 4000.1 and and Appraisal Reports, OMB Control insured financing. The collection allows requires Mortgagees to provide the form No.: 2502–0538 HUD to maintain an effective appraisal program with the ability to maintain to prospective homebuyers at first AGENCY: Office of the Chief Information sufficient oversight of its Roster contact, be it for pre-qualification, pre- Officer, HUD. Appraisers and to inform prospective approval, or initial application. ACTION: Notice. homeowners, seeking FHA-insured B. Solicitation of Public Comment financing, of the benefits of obtaining an SUMMARY: HUD has submitted the independent home inspection. This notice is soliciting comments proposed information collection Respondents: Business or other for from members of the public and affected requirement described below to the profit. parties concerning the collection of Office of Management and Budget Estimated Number of Respondents: information described in Section A and (OMB) for review, in accordance with 22,345. more specifically regarding:

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(1) Whether the proposed collection to the Office of Management and appropriate automated, electronic, of information is necessary for the Budget’s Desk Officer for the mechanical, or other technological proper performance of the functions of Department of the Interior by email at collection techniques or other forms of the agency, including whether the [email protected]; or via information technology (e.g., permitting information will have practical utility; facsimile to (202) 395–5806. Please electronic submission of response). (2) The accuracy of the agency’s provide a copy of your comments to Comments that you submit in estimate of the burden of the proposed Jeffrey Parrillo, 1849 C Street NW, response to this notice are a matter of collection of information; Washington, DC 20240; or by email to public record. Before including your (3) Ways to enhance the quality, [email protected]. Please address, phone number, email address, utility, and clarity of the information to reference OMB Control Number 1093– or other personal identifying be collected; and 0006 in the subject line of your information in your comment, you (4) Ways to minimize the burden of comments. should be aware that your entire the collection of information on those FOR FURTHER INFORMATION CONTACT: comment—including your personal who are to respond, including the use To request additional information about identifying information—may be made of appropriate automated collection publicly available at any time. While techniques or other form of information this ICR, contact Jeffrey Parrillo, 1849 C Street NW, Washington, DC 20240; or by you can ask us in your comment to technology, e.g., permitting electronic _ withhold your personal identifying submission of responses. HUD email to jeffrey [email protected]. Individuals who are hearing or speech information from public review, we encourages interested parties to submit cannot guarantee that we will be able to comment in response to these questions. impaired may call the Federal Relay Service at 1–800–877–8339 for TTY do so. (5) ways to minimize the burden of Abstract: Various laws, statutes, and assistance. the collection of information on those regulations, to include the Public Lands who are respond, including the use of SUPPLEMENTARY INFORMATION: In Corps Act (16 U.S.C. 1721 et. seq.), the automated collection techniques or accordance with the Paperwork Outdoor Recreation Authority (16 U.S.C. other forms of information technology. Reduction Act of 1995 and 5 CFR 4601), Volunteers in the National 1320.8(d)(1), all information collections Authority Forests Program (16 U.S.C. 558 a–d), require approval. We may not conduct and the Forest Foundation Volunteers Section 3507 of the Paperwork or sponsor and you are not required to Act (16 U.S.C. 583j), authorize Federal Reduction Act of 1995, 44 U.S.C. respond to a collection of information land management agencies to work with chapter 35. unless it displays a currently valid OMB volunteers to plan, develop, maintain, The public comment period for the control number. and manage projects and service notice published on February 8, 2021, As part of our continuing effort to activities on public lands and adjacent closed on April 9, 2021. reduce paperwork and respondent projects throughout the nation. We use Colette Pollard, burdens, we invite the public and other volunteers to aid in disaster response, Department Reports Management Officer, Federal agencies to comment on new, interpretive functions, visitor services, Office of the Chief Information Officer. proposed, revised, and continuing conservation measures and collections of information. This helps us [FR Doc. 2021–13954 Filed 6–29–21; 8:45 am] development, research and assess the impact of our information BILLING CODE 4210–67–P development, recreation, and or other collection requirements and minimize activities as allowed by an agency’s the public’s reporting burden. It also policy and regulations. Providing, helps the public understand our DEPARTMENT OF THE INTERIOR collecting, and exchanging written and information collection requirements and electronic information is required from Office of the Secretary provide the requested data in the potential and selected program desired format. participants of all ages so they can [PPWOIRADA1/PRCRFRFR6.XZ0000/ A Federal Register notice with a 60- access opportunities and benefits PR.RIRAD1801.00.1; OMB Control Number day public comment period soliciting 1093–0006] provided by agencies guidelines. Those comments on this collection of under the age of 18 years must have Agency Information Collection information was published on March 5, written consent from a parent or Activities; Natural and Cultural 2021 (86 FR 12966). No comments were guardian to participate in volunteer Resource Agencies Customer received. activities. We are again soliciting comments on Relationship Management In this revision, Interior will request the proposed ICR that is described (Volunteer.gov) and OF 301 Forms OMB approval to assume the below. We are especially interested in management and responsibility of AGENCY: Office of the Secretary, Interior. public comment addressing the common forms OF–301, OF–301a, and ACTION: Notice of information collection; following issues: (1) Whether the OF–301b from the Department of request for comment. collection of information is necessary Agriculture—U.S. Forest Service for the proper performance of the (currently approved under OMB Control SUMMARY: In accordance with the functions of the agency, including No. 0596–0080). These forms, available Paperwork Reduction Act of 1995, we, whether the information will have for prospective volunteers to complete the Office of the Secretary, Department practical utility; (2) The accuracy of our electronically or as paper forms, serve of the Interior (Interior), Office of the estimate of the burden for this collection two functions: Secretary, Department of the Interior are of information, including the validity of • Recruiting potential volunteers, and proposing to renew an information the methodology and assumptions used; • Formalizing agreements between collection with revisions. (3) Ways to enhance the quality, utility, current volunteers and the agencies DATES: Interested persons are invited to and clarity of the information to be with which they are volunteering. submit comments on or before July 30, collected; and (4) How might the agency The customer relationship 2021. minimize the burden of this collection management web-based portal, ADDRESSES: Send written comments on of information on those who are to Volunteer.gov, is the agencies’ response this information collection request (ICR) respond, including through the use of to meeting the public’s request for

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improved digital customer services to • Physical limitations; and We are proposing to collect month access and apply for engagement • Lodging preferences. and year of birth to be used along with opportunities. Under one security Information collected using this form other unique identifiers for each platform parameter, the Volunteer.gov or Volunteer.gov assists agency volunteer applicant. Using month and website provides prospective and volunteer coordinators and other year of birth will allow all participating current program participants the ability personnel in matching volunteers with agencies across locations to track their to establish an account for electronic agency opportunities appropriate for an volunteer hours across positions. submission of program applications and applicant’s skills, physical condition, Each participating agency must to obtain status of applications and and availability. We are proposing to enrollments. Planned future collect date of birth to be used along request OMB approval of, and report functionality will provide information with other unique identifiers for each their own burden associated with, the digitally on benefits and requirements, volunteer applicant. Using date of birth use of common forms OF–301, OF– and will facilitate improved tracking of will allow all participating agencies 301a, and OF–301b in order to be volunteer service hours. Currently, these across locations to better track authorized to participate in this data points are tracked manually and applicants via the Volunteer.gov information collection. Interior will not are accessible from agency volunteer website. assume the burden for any agencies program coordinators. Forms OF–301A—Volunteer Service other than its own bureaus and offices This information collection Agreement: We use this form to that participate in the volunteer specifically minimizes the burden on establish agreements for volunteer program. services between Federal agencies and the respondents. While electronic Title of Collection: Natural and individual or group volunteers, to records provide a means to streamline Cultural Resource Agencies Customer include eligible international data collection and allow participant Relationship Management access to track benefits and control the volunteers. We require the signature of (Volunteer.gov) and OF 301 Forms. sharing of their data, the participating parents or guardians for all applicants agencies will continue to provide under 18 years of age. We collect the OMB Control Number: 1093–0006. accessible paper versions of the following information from volunteers Form Number: OF–301, OF–301A, volunteer forms upon request and while via Form OF–301A: and OF–301B. the functionality in the web-based • Name and contact information Type of Review: Revision of a portal is being built. (address, telephone number, and email Participating Agencies: address); currently approved collection. • Department of the Interior: All • Date of birth (proposed new data Respondents/Affected Public: Interior offices and units, including field); Individuals and private sector National Park Service, U.S. Fish and • Citizenship information; and, (cooperating associations and partner • Wildlife Service, Bureau of Land Emergency contact information. organizations) interested in volunteer Management, Bureau of Reclamation, Forms OF–301A describe the service opportunities. Bureau of Indian Affairs, Office of a volunteer will perform, and asks a volunteer to confirm their Total Estimated Number of Annual Surface Mining Reclamation and Respondents: 561,408. Enforcement, and U.S. Geological understanding of the purpose of the Survey. volunteer program, their fitness and Total Estimated Number of Annual • Department of Agriculture: U.S. ability to perform the duties as Responses: 561,408. Forest Service and Natural Resources described, and whether they consent to Estimated Completion Time per Conservation Service. being photographed. We are proposing Response: Completion time varies from • to collect date of birth to be used along Department of Defense: U.S. Army 5 minutes to 15 minutes, depending on with other unique identifiers for each Corps of Engineers. the function being performed. • Department of Commerce: National volunteer applicant. Using date of birth Oceanic and Atmospheric will allow all participating agencies Total Estimated Number of Annual Administration—Office of National across locations to track their volunteer Burden Hours: 100,918 Hours. Marine Sanctuaries. hours. Respondent’s Obligation: Required to Common Forms: Forms OF–301B—Volunteer Group obtain or retain a benefit. Forms OF–301—Volunteer Sign-up: We use this form to document Frequency of Collection: Typically Application: Individuals interested in awareness and understanding by adult once per year. volunteering may access the individuals in groups about the Volunteer.gov website to complete an volunteer activities between a Federal Total Estimated Annual Nonhour on-line application on the Volunteer.gov agency and a partner organization with Burden Cost: None. website. Alternatively, they may contact group participants, and accompanies the An agency may not conduct or any agency listed above to request a Form OF–301a. We collect the following sponsor and a person is not required to Volunteer Application (Form OF–301). information from volunteers via Form respond to a collection of information We collect the following information OF–301b: unless it displays a currently valid OMB • Name and contact information from applicants via Form OF–301: control number. • Name and contact information (address, telephone number, and email (address, telephone number, and email address); The authority for this action is the address); • Month and year of birth (proposed Paperwork Reduction Act of 1995 (44 • Date of birth (proposed new data new data field); U.S.C. 3501 et seq). • Confirmation of understanding of field); Jeffrey Parrillo, • Preferred work categories; the purpose of the volunteer program; • Interests; • Fitness and ability to perform the Departmental Information Collection • Citizenship status; duties as described; and Clearance Officer. • Available dates and preferred • Whether they consent to being [FR Doc. 2021–13900 Filed 6–29–21; 8:45 am] location; photographed BILLING CODE 4334–63–P

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DEPARTMENT OF THE INTERIOR email: [email protected] or telephone: personal identifying information—may (916) 941–3146. Persons who use a be made publicly available at any time. Bureau of Land Management telecommunications device for the deaf While you can ask us in your comment [LLCAC01000.19XL1109AF.L13100000. (TDD) may call the Federal Relay to withhold your personal identifying DF00000 MO #4500153111] Service (FRS) at (800) 877–8339 to information from public review, we contact Ms. Baker during normal cannot guarantee that we will be able to Notice of Public Meetings of the business hours. The FRS is available 24 do so. Central California Resource Advisory hours a day, 7 days a week, to leave a Members of the public are welcome Council message. You will receive a reply during on field tours but must provide their normal business hours. own transportation and meals. AGENCY: Bureau of Land Management, Individuals who plan to attend and Interior. SUPPLEMENTARY INFORMATION: The need special assistance, such as sign ACTION: Notice of public meetings. Central California RAC advises the Secretary of the Interior, through the language interpretation and other SUMMARY: In accordance with the BLM, on a variety of planning and reasonable accommodations, should Federal Land Policy and Management management issues associated with contact the BLM (see FOR FURTHER Act and the Federal Advisory BLM-managed public lands in central INFORMATION CONTACT). Meetings and Committee Act, the U.S. Department of California. Topics for these meetings are field tours will follow current CDC the Interior, Bureau of Land as follows: COVID–19 guidance regarding social Management’s (BLM) Central California Sept. 22 and 23, 2021: On Sept. 22, distancing and wearing of masks. Resource Advisory Council (RAC) will the RAC will hear about the BLM Trails Detailed minutes for the RAC meet as follows. and Travel Management Plan for the meetings will be maintained in the BLM DATES: The RAC will hold a public Berryessa Snow Mountain National Central California District Office. meeting on Wednesday, Sept. 22, 2021, Monument and determine how it will Minutes will also be posted to the BLM from 1 p.m. to 5 p.m., with public participate in the process. The RAC will California RAC web page. comments accepted at 4:30 p.m. The also be briefed on development of the (Authority: 43 CFR 1784.4–2) RAC will conduct a field tour on South Cow Mountain OHV Management Thursday, Sept. 23, 2021, from 8:30 a.m. Area Recreation Improvement Plan, hear Carly Summers, to 12:30 p.m. reports from the district and field Acting Deputy State Director, The RAC will hold a business meeting offices, and schedule meeting dates for Communications. on Wednesday, Nov. 17, 2021, from 1 2022. On Sept. 23, the RAC will tour the [FR Doc. 2021–13941 Filed 6–29–21; 8:45 am] p.m. to 5 p.m., with public comments Berryessa Snow Mountain National BILLING CODE 4310–40–P accepted at 4:30 p.m. The RAC will Monument that will be affected by the conduct a field tour on Thursday, Nov. BLM Trails and Travel Management 18, 2021, from 8:30 a.m. to 12:30 p.m. Planning under development. DEPARTMENT OF THE INTERIOR If Centers for Disease Control (CDC) Nov. 17 and 18, 2021: On Nov. 17, National Park Service COVID–19 guidelines preclude on-site The RAC will discuss development of meetings, the field tours will be the San Joaquin Desert Hills Special [NPS–NER–MAMC–31883; PPNCNACEN0, cancelled, and the business meetings Recreation Management Area (SRMA) PPMPSAS1Z.Y00000] will be held in virtual formats via Zoom Activity Plan and discuss any action on Wednesday, Sept. 22, 2021, and on related to the plan development. The Request for Nominations for the Mary Wednesday, Nov. 17, 2021. RAC will also learn about recreational McLeod Bethune Council House The meetings and field tours are open target shooting impacts throughout the National Historic Site Advisory to the public. Central California District and hear Commission ADDRESSES: Meeting links and reports from the district and field AGENCY: National Park Service, Interior. participation instructions will be made offices. On Nov. 18, the RAC will tour available to the public via news media, public lands in the Panoche and Tumey ACTION: Notice. social media, the BLM California Hills recreation areas and discuss how SUMMARY: The National Park Service website https://go.usa.gov/xH9ya, and the San Joaquin Desert Hills SRMA through personal contact 2 weeks prior (NPS), U.S. Department of the Interior, Activity Plan would apply to these is requesting nominations for qualified to the meeting. The Sept. 22 meeting areas. will be held at the BLM Ukiah Field persons to serve as members of the Mary All meetings are open to the public. McLeod Bethune Council House Office, 2550 North State Street, Suite 2, Each formal RAC meeting will have Ukiah, CA 95482. The Sept. 23 field National Historic Site Advisory time allocated for public comments. Commission (Commission). tour will be to the Berryessa Snow Depending on the number of persons Mountain National Monument. The wishing to speak and the time available, DATES: Written nominations must be Nov. 17 meeting be held at the Harris the amount of time for oral comments postmarked by July 30, 2021. Ranch Inn & Restaurant, 24505 West may be limited. Written public ADDRESSES: Nominations should be sent Dorris Avenue, Coalinga, CA 93210. The comments may be sent to the BLM to Tonya Thompson, Chief of Staff, Nov. 18 field tour will be to the Panoche Central California District Office listed National Capital Parks-East, National and Tumey Hills recreation areas. in the ADDRESSES section of this notice. Park Service, 1900 Anacostia Drive SE, Written comments pertaining to any All comments received will be provided Washington, DC 20020, telephone (202) of the above meetings can be sent to the to the RAC. 407–5267, or email latonya_thompson@ BLM Central California District Office, Public Disclosure of Comments: nps.gov. 5152 Hillsdale Circle, El Dorado Hills, Before including your address, phone FOR FURTHER INFORMATION CONTACT: CA 95762, Attention: RAC meeting number, email address, or other Tonya Thompson, Chief of Staff, comments. personal identifying information in your National Capital Parks-East, National FOR FURTHER INFORMATION CONTACT: comment, you should be aware that Park Service, 1900 Anacostia Drive SE, Public Affairs Officer Serena Baker, your entire comment—including your Washington, DC 20020, telephone (202)

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407–5267, or email latonya_thompson@ Authority: 5 U.S.C. Appendix 2. This meeting is open to the public. nps.gov. Alma Ripps, Interested persons may present, either orally or through written comments, SUPPLEMENTARY INFORMATION: Chief, Office of Policy. The information for the Commission to Commission was authorized on [FR Doc. 2021–13920 Filed 6–29–21; 8:45 am] consider during the public meeting. December 11, 1991, by Public Law 102– BILLING CODE 4312–52–P Written comments will also be accepted 211 (54 U.S.C. 320101 formerly 16 prior to, during, or after the meeting. U.S.C. 461 note), for the purpose of DEPARTMENT OF THE INTERIOR Members of the public may submit advising the Secretary of the Interior written comments by mailing them to (Secretary) on the implementation of a National Park Service Mackensie Henn, Assistant to the general management plan for the Mary Superintendent, Chesapeake and Ohio McLeod Bethune Council House [NPS–NCR–CHOH–31910; PPNCCHOHS0– Canal National Historical Park, 142 W PPMPSPD1Z.YM0000] National Historic Site. The Commission Potomac Street, Williamsport, MD meets at least semiannually to discuss Chesapeake and Ohio Canal National 21795, (240) 520–3135, or by email _ matters relating to the management and Historical Park Commission; Notice of choh [email protected]. Comments development of the historic site. Public Meeting sent via email should include The Commission is composed of 15 Comments for July 2021 Advisory members appointed by the Secretary for AGENCY: National Park Service, Interior. Commission Meeting in the subject line. 4-year terms, as follows: (1) Three ACTION: Meeting notice. All written comments will be provided members selected from to members of the Commission. SUMMARY: In accordance with the Depending on the number of people recommendations submitted by the Federal Advisory Committee Act of National Council of Negro Women, Inc.; wishing to comment and the time 1972, the National Park Service (NPS) is available, the amount of time for oral (2) two members selected from hereby giving notice that the comments may be limited. All recommendations submitted by other Chesapeake and Ohio Canal National comments will be made part of the national organizations in which Mary Historical Park Commission public record and will be electronically McLeod Bethune played a leadership (Commission) will meet as indicated distributed to all Commission members. role; (3) two members with professional below. Detailed minutes of the meeting will be expertise in the history of African DATES: The virtual meeting will take available for public inspection within American women; (4) three members place on Thursday, July 15, 2021. The 90 days of the meeting. with professional expertise in archival meeting will begin at 9:00 a.m. until Public Disclosure of Comments: management; (5) three members 12:00 p.m. (EASTERN). Before including your address, phone representing the general public; and (6) ADDRESSES: The meeting will be held number, email address, or other two members with professional on-line. Instructions for accessing the personal identifying information in your expertise in historic preservation. The meeting will available in advance on the written comments, you should be aware NPS is currently seeking members to Commission’s website at https:// that your entire comment including represent all categories. www.nps.gov/choh/learn/news/federal- your personal identifying information Nominations should be typed and advisory-commission.htm or by will be made publicly available. While include a resume providing an adequate emailing [email protected]. you can ask us in your comment to description of the nominee’s FOR FURTHER INFORMATION CONTACT: Tina withhold your personal identifying qualifications, including information Cappetta, Superintendent, Chesapeake information from public review, we that would enable the Department of the and Ohio Canal National Historical cannot guarantee that we will be able to Interior to make an informed decision Park, 142 W Potomac Street, do so. regarding meeting the membership Williamsport, MD 21795, or via (Authority: 5 U.S.C. Appendix 2) telephone at (301) 714–2201, or by requirements of the Commission and Alma Ripps, permit the Department to contact a email [email protected]. Chief, Office of Policy. potential member. All documentation, SUPPLEMENTARY INFORMATION: The [FR Doc. 2021–13921 Filed 6–29–21; 8:45 am] including letters of recommendation, Commission was established on January must be compiled and submitted in one 8, 1971, under 16 U.S.C. 410y–4, as BILLING CODE 4312–52–P complete package. All those interested amended, and is regulated by the Federal Advisory Committee Act. in membership, including current DEPARTMENT OF THE INTERIOR members whose terms are expiring, Appendix D, Division B, Title I, Section must follow the same process. Members 134 of Public Law 106–554, December Bureau of Ocean Energy Management can not appoint deputies or alternates. 21, 2000, and Section 1 of Public Law 113–178, September 26, 2014, [Docket No. BOEM–2021–0047] Members of the Commission serve respectively, amended the enabling Notice of Intent To Prepare an without compensation. However, while legislation extending the term of the Environmental Impact Statement for away from their homes or regular places Commission for a period to expire on the Vineyard Wind South Project of business in the performance of September 26, 2024. services for the Commission as Purpose of the Meeting: The agenda Offshore Massachusetts approved by the NPS, members will be will include discussion of park updates AGENCY: Bureau of Ocean Energy allowed travel expenses, including per and outline goals for Fiscal Year 2021 Management (BOEM), Interior. diem in lieu of subsistence, in the same and beyond. The final agenda will be ACTION: Notice of intent (NOI) to prepare manner as persons employed posted on the Park’s website at https:// an environmental impact statement intermittently in Government service www.nps.gov/choh/learn/news/federal- (EIS); request for comments. are allowed such expenses under advisory-commission.htm. The website section 5703 of title 5 of the United includes meeting minutes from all prior SUMMARY: Consistent with the States Code. meetings. regulations implementing the National

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Environmental Policy Act (NEPA), impacts of climate change; protects public Vineyard Wind’s COP to construct and BOEM announces its intent to prepare health; conserves our lands, waters, and install, operate and maintain, and an EIS for the review of a construction biodiversity; delivers environmental justice; decommission commercial-scale and spurs well-paying union jobs and offshore wind energy facilities within and operations plan (COP) submitted by economic growth, especially through Vineyard Wind, LLC (Vineyard Wind) innovation, commercialization, and the Lease Area (the Proposed Action). for its Vineyard Wind South Project. deployment of clean energy technologies and BOEM’s action is needed to further the The COP proposes the phased infrastructure. United States policy to make Outer Continental Shelf energy resources development, construction, and Through a competitive leasing process available for expeditious and orderly operation of wind energy facilities under 30 CFR 585.211, on April 1, 2015, development, subject to environmental offshore Massachusetts with export BOEM awarded Lease OCS–A 0501, safeguards (43 U.S.C. 1332(3)), cables connecting to the onshore electric covering an area offshore Massachusetts, including consideration of natural grid in Barnstable County, to Vineyard Wind. In June 2021, resources, safety of navigation, and Massachusetts. This NOI announces the Vineyard Wind assigned the existing ocean uses. EIS scoping process for the Vineyard northeastern portion of Lease OCS–A Wind South COP. Additionally, this In addition, the National Oceanic and 0501 to a subsidiary, Vineyard Wind 1, Atmospheric Administration (NOAA) NOI seeks public comment and input LLC, and BOEM renamed the remaining under section 106 of the National National Marine Fisheries Service area Lease OCS–A 0534. Vineyard Wind (NMFS) anticipates receipt of one or Historic Preservation Act (NHPA) and has the exclusive right to submit a COP its implementing regulations. Detailed more requests for authorization to take for activities within Lease OCS–A 0534, marine mammals incidental to activities information about the proposed wind and it submitted a phased development energy facilities, including the COP, can related to the Project under the Marine COP to BOEM proposing the Mammal Protection Act (MMPA). be found on BOEM’s website at: construction and installation, operations www.BOEM.gov/Vineyard-Wind-South. NMFS’ issuance of an MMPA incidental and maintenance, and conceptual take authorization is a major Federal DATES: Comments are due to BOEM no decommissioning of offshore wind action, and, in relation to BOEM’s later than July 30, 2021. energy facilities (the Project or Vineyard BOEM will hold virtual public action, is considered a connected action Wind South). The Project is proposed (40 CFR 1501.9(e)(1)). The purpose of scoping meetings for the Vineyard Wind within the area defined by Lease OCS– South EIS at the following dates and the NMFS action—which is a direct A 0534 and a small portion of the area outcome of Vineyard Wind’s request for times (eastern daylight time): within Lease OCS–A 0501 for potential • Monday, July 19, 5:30 p.m.; authorization to take marine mammals • development (collectively, the Lease incidental to specified activities Friday, July 23, 1:00 p.m.; and Area). • Monday, July 26, 5:30 p.m. associated with the Project (e.g., pile Vineyard Wind South’s purpose and driving)—is to evaluate the applicant’s ADDRESSES: Comments can be submitted need is to develop commercial-scale, request pursuant to specific in any of the following ways: offshore wind energy facilities in two • requirements of the MMPA and its In written form, delivered by mail phases in the Lease Area, with up to a or delivery service, enclosed in an implementing regulations administered total of 130 wind turbine positions, two by NMFS, consider impacts of the envelope labeled, ‘‘VINEYARD WIND to five offshore substations (also called SOUTH COP EIS’’ and addressed to applicant’s activities on relevant ‘‘electrical service platforms’’), inter- resources, and if appropriate, to issue Program Manager, Office of Renewable array cables, up to three onshore the permit or authorization. NMFS Energy, Bureau of Ocean Energy substations, and up to five transmission needs to render a decision regarding the Management, 45600 Woodland Road, cables making landfall in Barnstable request for authorization due to NMFS’s Sterling, Virginia 20166; or County, Massachusetts. Phase One of • Through the regulations.gov web responsibilities under the MMPA (16 Vineyard Wind South is called ‘‘Park U.S.C. 1371(a)(5)(D)) and its portal: Navigate to http:// City Wind.’’ It would contribute to implementing regulations. If NMFS www.regulations.gov and search for Connecticut’s mandate of 2,000 makes the findings necessary to issue Docket No. BOEM–2021–0047. Click on megawatts (MW) of offshore wind the requested authorization, NMFS the ‘‘Comment Now!’’ button to the right energy by 2030, as outlined in intends to adopt BOEM’s EIS to support of the document link. Enter your Connecticut Public Act 19–71, through that decision and fulfill its NEPA information and comment, then click Vineyard Wind’s 804–MW Power requirements. ‘‘Submit.’’ Purchase Agreement (PPA) with The U.S. Army Corps of Engineers, FOR FURTHER INFORMATION CONTACT: Connecticut’s Public Utilities New England District (USACE) Michelle Morin, BOEM Office of Regulatory Authority. Vineyard Wind is anticipates a permit action to be Renewable Energy Programs, 45600 actively competing for PPAs for Phase undertaken through authority delegated Woodland Road, Sterling, Virginia Two of Vineyard Wind South, which to the District Engineer by 33 CFR 325.8, 20166, (703) 787–1722 or would provide approximately 1,200– under section 10 of the Rivers and [email protected]. 1,500 MW of offshore wind energy to Harbors Act of 1899 (RHA) (33 U.S.C. SUPPLEMENTARY INFORMATION: the northeastern states. The two phases 403) and section 404 of the Clean Water combined would provide a total of Act (CWA) (33 U.S.C. 1344). The Purpose of and Need for the Proposed approximately 2,004–2,304 MWs of USACE considers issuance of a permit Action offshore wind energy and would under these two delegated authorities a In Executive Order 14008, President contribute to the region’s electrical major Federal action connected to Biden stated that it is the policy of the reliability. BOEM’s Proposed Action (40 CFR United States: Based on the goals of the applicant 1501.9(e)(1)). The applicant’s stated to organize and deploy the full capacity of its and BOEM’s authority, the purpose of purpose and need for the project, as agencies to combat the climate crisis to BOEM’s action is to respond to indicated above, is to provide a implement a Government-wide approach that Vineyard Wind’s COP proposal and commercially viable offshore wind reduces climate pollution in every sector of determine whether to approve, approve energy project within the Lease Area to the economy; increases resilience to the with modifications, or disapprove help Connecticut and other northeastern

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states achieve their renewable energy described in the COP would not be built minimize, or mitigate environmental goals. in the Lease Area. effects. The basic project purpose, as Once BOEM completes the EIS and determined by USACE for section associated consultations, BOEM will Anticipated Permits and Authorizations 404(b)(1) guidelines evaluation, is decide whether to approve, approve In addition to the requested COP offshore wind energy generation. The with modification, or disapprove the approval, various other federal, state, overall project purpose for section Vineyard Wind South COP. If BOEM and local authorizations will be 404(b)(1) guidelines evaluation, as approves the COP and the Project is required for the Vineyard Wind South determined by USACE, is the constructed, the lessee must submit a Project. Applicable Federal laws include construction and operation of a plan to decommission the facilities the Endangered Species Act, commercial-scale, offshore wind energy before the end of the lease term. Magnuson-Stevens Fishery project for renewable energy generation Conservation and Management Act, Summary of Potential Impacts and distribution to the New England NEPA, MMPA, RHA, CWA, and Coastal energy grid. USACE intends to adopt The draft EIS will identify and Zone Management Act. BOEM will also BOEM’s EIS to support its decision on describe the potential effects of the conduct government-to-government any permits requested under section 10 Proposed Action on the human tribal consultations. For a full listing of of the RHA or section 404 of the CWA. environment that are reasonably regulatory requirements applicable to foreseeable and have a reasonably close the Vineyard Wind South Project, please Preliminary Proposed Action and causal relationship to the Proposed see the COP, volume I, available at Alternatives Action. This includes such effects that https://www.boem.gov/vineyard-wind- The Proposed Action is the occur at the same time and place as the south/. construction and operation of wind Proposed Action or alternatives and BOEM has chosen to use the NEPA energy facilities in two phases on the such effects that are later in time or substitution process to fulfill its Lease Area as described in the COP occur in a different place. Potential obligations under NHPA. While BOEM’s submitted by Vineyard Wind. In its impacts include, but are not limited to, obligations under NHPA and NEPA are COP, Vineyard Wind proposes the impacts (both beneficial and adverse) on independent, regulations implementing construction and operation of up to 130 air quality, water quality, bats, benthic section 106 of the NHPA, at 36 CFR wind turbines, two to five offshore habitat, essential fish habitat, 800.8(c), allow the NEPA process and substations, inter-array cables, and up to invertebrates, finfish, birds, marine documentation to substitute for various three onshore substations with up to mammals, terrestrial and coastal aspects of review otherwise required five export cables connecting to the habitats and fauna, sea turtles, wetlands under the NHPA. This substitution is onshore electric grid in Barnstable and other waters of the United States, intended to improve efficiency, promote County, Massachusetts. commercial fisheries and for-hire transparency and accountability, and A combination of monopiles, piled recreational fishing, cultural resources, support a broadened discussion of jackets, or both could be used as demographics, employment, economics, potential effects that a project could foundations in Phase One, pending the environmental justice, land use and have on the human environment. outcome of a foundation feasibility coastal infrastructure, navigation and During preparation of the EIS, BOEM analysis. In Phase Two, monopiles, vessel traffic, other marine uses, will ensure that the NHPA process for jackets (with piles or suction buckets), recreation and tourism, and visual NEPA substitution will fully meet all bottom-frame foundations (with piles, resources. These potential impacts will NHPA obligations. gravity pads, or suction buckets), or a be analyzed in the draft and final EIS. combination of those foundation types Based on a preliminary evaluation of Schedule for the Decision-Making may be used, pending the outcome of a these resources, BOEM expects potential Process foundation feasibility analysis. impacts on sea turtles and marine After the draft EIS is completed, The closest point of the Vineyard mammals from underwater noise caused BOEM will publish a notice of Wind South development is 19.9 statute by construction and from collision risks availability (NOA) and request public miles south of Martha’s Vineyard and with Project-related vessel traffic. comments on the draft EIS. BOEM 23.7 statute miles from Nantucket. The Structures installed by the Project could expects to issue the NOA in July 2022. Project also may include one reactive permanently change benthic habitat and After the public comment period ends, compensation station (booster station) other fish habitat. Commercial fisheries BOEM will review and respond to that would be located in one of two and for-hire recreational fishing could comments received and will develop the potential locations that are 14.62 statute be impacted. Project structures above final EIS. BOEM expects to make the miles south of Martha’s Vineyard and the water could affect the visual final EIS available to the public in 16.54 statute miles from Nantucket or character defining historic properties March 2023. A record of decision will 22.98 miles south of Martha’s Vineyard and recreational and tourism areas. be completed no sooner than 30 days and 19.24 miles from Nantucket. The Project structures also would pose an after the final EIS is released, in offshore export cables would be buried allision and height hazard to vessels accordance with 40 CFR 1506.11. below the seabed. The onshore export passing close by, and vessels would in This project is a ‘‘covered project’’ cables, substations, and grid turn pose a hazard to the structures. under section 41 of the Fixing America’s connections would be in Barnstable Additionally, the Project could Surface Transportation Act (FAST–41). County, Massachusetts. adversely impact military use, air traffic, FAST–41 provides increased If any reasonable alternatives are land-based radar services, cables and transparency and predictability by identified during the scoping period, pipelines, and scientific surveys. requiring federal agencies to publish BOEM will evaluate those alternatives Beneficial impacts are also expected by comprehensive permitting timetables for in the draft EIS, which will also include facilitating achievement of state all covered projects. FAST–41 also a no action alternative. Under the no renewable energy goals, increasing job provides procedures for modifying action alternative, BOEM would opportunities, improving air quality, permitting timetables to address the disapprove the COP, and the Vineyard and reducing carbon emissions. The EIS unpredictability inherent in the Wind South wind energy facilities will analyze measures that would avoid, environmental review and permitting

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process for significant infrastructure scope and detail of cooperating BOEM does not consider anonymous projects. To view the FAST–41 agencies’ contributions, and availability comments. Please include your name Permitting Dashboard for Vineyard of pre-decisional information. BOEM and address as part of your comment. Wind South, visit: https:// anticipates this summary will form the BOEM makes all comments, including cms.permits.performance.gov/ basis for a memorandum of agreement the names, addresses, and other permitting-project/vineyard-wind-south. between BOEM and any non- personally identifiable information Department of the Interior cooperating included in the comment, available for Scoping Process agency. Agencies also should consider public review online. Individuals can This NOI commences the public the factors for determining cooperating request that BOEM withhold their scoping process to identify issues and agency status in the Council on names, addresses, or other personally potential alternatives for consideration Environmental Quality memorandum identifiable information included in in the Vineyard Wind South EIS. entitled ‘‘Cooperating Agencies in their comment from the public record; Throughout the scoping process, federal Implementing the Procedural however, BOEM cannot guarantee that it agencies, state, tribal, and local Requirements of the National will be able to do so. In order for BOEM governments, and the general public Environmental Policy Act,’’ dated to withhold from disclosure your have the opportunity to help BOEM January 30, 2002. This document is personally identifiable information, you determine significant resources and available on the internet at: http:// must identify any information contained issues, impact-producing factors, energy.gov/sites/prod/files/nepapub/ in your comments that, if released, reasonable alternatives (e.g., size, nepa_documents/RedDont/G-CEQ-Coop would constitute a clearly unwarranted geographic, seasonal, or other AgenciesImplem.pdf. invasion of your privacy. You also must restrictions on construction and siting of BOEM, as the lead agency, will not briefly describe any possible harmful facilities and activities), and potential provide financial assistance to consequences of the disclosure of mitigation measures to be analyzed in cooperating agencies. Even if a information, such as embarrassment, the EIS, as well as to provide additional governmental entity is not a cooperating injury, or other harm. information. agency, it will have opportunities to Additionally, under section 304 of As noted above, BOEM will use the provide information and comments to NHPA, BOEM is required, after NEPA substitution process provided for BOEM during the public input stages of consultation with the Secretary of the in the NHPA regulations. BOEM will the NEPA process. Interior, to withhold the location, consider all written requests from NHPA Consulting Parties: Certain character, or ownership of historic individuals or organizations to individuals and organizations with a resources if it determines that disclosure participate as consulting parties under demonstrated interest in the Project can may, among other things, cause a NHPA and, as discussed below, will request to participate as NHPA significant invasion of privacy, risk determine who among those parties will consulting parties under 36 CFR harm to the historic resources, or be a consulting party in accordance with 800.2(c)(5) based on their legal or impede the use of a traditional religious NHPA regulations. economic stake in historic properties site by practitioners. Tribal entities and BOEM will hold virtual public affected by the Project. Additionally, the other interested parties should designate scoping meetings for the Vineyard Wind same provision allows those with information that they wish to be held as South EIS at the following dates and concerns about the Project’s effect on confidential and provide the reasons times (eastern daylight time): historic properties to request to be why BOEM should do so. • Monday, July 19, 5:30 p.m.; All submissions from organizations or consulting parties. • Friday, July 23, 1:00 p.m.; and businesses and from individuals • Monday, July 26, 5:30 p.m. Before issuing this NOI, BOEM identifying themselves as Registration for the virtual public compiled a list of potential consulting representatives or officials of meetings may be completed here: parties and invited them in writing to organizations or businesses will be https://www.boem.gov/Vineyard-Wind- become consulting parties. To become a made available for public inspection in South-Scoping-Virtual-Meetings or by consulting party, those invited must their entirety. calling (703) 787–1073. respond in writing, preferably by the NEPA Cooperating Agencies: BOEM requested response date. Request for Identification of Potential invites other federal agencies and state, Interested individuals or Alternatives, Information, and tribal, and local governments to organizations that did not receive an Analyses Relevant to the Proposed consider becoming cooperating agencies invitation can request to be consulting Action in the preparation of this EIS. The NEPA parties by writing to the appropriate BOEM requests data, comments, regulations specify that qualified staff at ERM, which is supporting BOEM views, information, analysis, agencies and governments are those in its administration of this review. alternatives, or suggestions from the with ‘‘jurisdiction by law or special ERM’s NHPA contact for this review is public; affected federal, state, tribal, and expertise.’’ Potential cooperating Danna Allen (678–904–4399, local governments, agencies, and offices; agencies should consider their authority ERM.NAVineyardWind the scientific community; industry; or and capacity to assume the [email protected]. BOEM will any other interested party on the responsibilities of a cooperating agency determine which interested parties Proposed Action. Specifically, BOEM and should be aware that an agency’s should be consulting parties. requests information on the following role in the environmental analysis Comments: Federal agencies, tribal, topics: neither enlarges nor diminishes the final state, and local governments, and other 1. Potential effects that the Proposed decision-making authority of any other interested parties are requested to Action could have on biological agency involved in the NEPA process. comment on the scope of this EIS, resources, including bats, birds, coastal Upon request, BOEM will provide significant issues that should be fauna, finfish, invertebrates, essential potential cooperating agencies with a addressed, and alternatives that should fish habitat, marine mammals, and sea written summary of expectations for be considered. For information on how turtles. cooperating agencies, including to submit comments, see the ADDRESSES 2. Potential effects that the Proposed schedules, milestones, responsibilities, section above. Action could have on physical resources

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including air quality, water quality, and Authority: This NOI is published in the Office of the Secretary, U.S. wetlands and other waters of the United accordance with NEPA, 42 U.S.C. 4321 et International Trade Commission, States. seq., and 40 CFR 1501.9. Washington, DC, and by publishing the 3. Potential effects that the Proposed William Yancey Brown, notice in the Federal Register of Action could have on socioeconomic Chief Environmental Officer, Bureau of Ocean December 30, 2020 (85 FR 86578). In and cultural resources, including Energy Management. light of the restrictions on access to the commercial fisheries and for-hire [FR Doc. 2021–13994 Filed 6–29–21; 8:45 am] Commission building due to the recreational fishing, demographics, COVID–19 pandemic, the Commission BILLING CODE 4310–MR–P employment, economics, environmental conducted its hearing through written justice, land use and coastal testimony and video conference on infrastructure, navigation and vessel February 22, 2021. All persons who INTERNATIONAL TRADE traffic, other uses (marine minerals, requested the opportunity were military use, aviation), recreation and COMMISSION permitted to participate. tourism, and scenic and visual [Investigation No. 731–TA–1526 (Final)] The Commission subsequently issued resources. its final determinations that an industry 4. Other possible reasonable Supplemental Schedule for the Final in the United States was materially alternatives to the Proposed Action that Phase of an Anti-Dumping Duty injured by reason of imports of silicon BOEM should consider, including Investigation; Silicon Metal From metal provided for in subheading additional or alternative avoidance, Malaysia 2804.69.10 and 2804.69.50 of the minimization, and mitigation measures. Harmonized Tariff Schedule of the AGENCY: United States International 5. As part of its compliance with United States (‘‘HTSUS’’) from Bosnia Trade Commission. NHPA section 106 and its implementing and Herzegovina and Iceland that have regulations (36 CFR part 800), BOEM ACTION: Notice. been found by the Commerce to be sold seeks comment and input from the in the United States at LTFV and by DATES: Effective June 24, 2021. public and consulting parties regarding imports of silicon metal from the identification of historic properties FOR FURTHER INFORMATION CONTACT: Kazakhstan found to be subsidized by within the Proposed Action’s area of Nitin Joshi ((202) 708–1669), Office of the government of Kazakhstan. potential effects, the potential effects on Investigations, U.S. International Trade Commerce has issued a final affirmative those historic properties from the Commission, 500 E Street SW, antidumping duty determination with activities proposed in the COP, and any Washington, DC 20436. Hearing- respect to silicon metal from Malaysia.4 information that supports identification impaired persons can obtain Accordingly, the Commission currently of historic properties under NHPA. information on this matter by contacting is issuing a supplemental schedule for BOEM also solicits proposed measures the Commission’s TDD terminal on 202– its antidumping duty investigation on to avoid, minimize, or mitigate any 205–1810. Persons with mobility imports of silicon metal from Malaysia. adverse effects on historic properties. impairments who will need special This supplemental schedule is as BOEM will present available assistance in gaining access to the follows: The deadline for filing information regarding known historic Commission should contact the Office supplemental party comments on properties during the public scoping of the Secretary at 202–205–2000. Commerce’s final antidumping duty period at https://www.boem.gov/ General information concerning the determination is July 8, 2021. vineyard-wind-south/. BOEM’s effects Commission may also be obtained by Supplemental party comments may analysis for historic properties will be accessing its internet server (https:// address only Commerce’s final available for public and consulting party www.usitc.gov). The public record for antidumping duty determination comment in the draft EIS. this investigation may be viewed on the regarding imports of silicon metal from 6. Information on other current or Commission’s electronic docket (EDIS) Malaysia. These supplemental final planned activities in, or in the vicinity at https://edis.usitc.gov. comments may not contain new factual of, the Proposed Action and their SUPPLEMENTARY INFORMATION: Effective information and may not exceed five (5) possible impacts on the Project or the December 7, 2020, the Commission pages in length. The supplemental staff Project’s impacts on those activities. established a general schedule for the report in the final phase of this 7. Other information relevant to the conduct of the final phase of its investigation regarding subject imports Proposed Action and its impacts on the investigations on silicon metal from from Malaysia will be placed in the human environment. Bosnia and Herzegovina, Iceland, nonpublic record on July 19, 2021; and To promote informed decision- Kazakhstan, and Malaysia 1 following a a public version will be issued making, comments should be as specific preliminary determination by the U.S. thereafter. as possible and should provide as much Department of Commerce (‘‘Commerce’’) For further information concerning detail as necessary to meaningfully and that imports of silicon metal from this investigation see the Commission’s fully inform BOEM of the commenter’s Bosnia and Herzegovina and Iceland notice cited above and the position. Comments should explain why were being sold at less than fair value Commission’s Rules of Practice and the issues raised are important to the (‘‘LTFV’’) 2 and that imports of silicon Procedure, part 201, subparts A and B consideration of potential metal from Kazakhstan were subsidized (19 CFR part 201), and part 207, environmental impacts and alternatives by the government of Kazakhstan.3 subparts A and C (19 CFR part 207). to the Proposed Action as well as Notice of the scheduling of the final Please note the Secretary’s Office will economic, employment, and other phase of the Commission’s accept only electronic filings during this impacts affecting the quality of the investigations and of a public hearing to time. Filings must be made through the human environment. be held in connection therewith was Commission’s Electronic Document The draft EIS will include a summary given by posting copies of the notice in of all alternatives, information, and 4 86 FR 33224, June 24, 2021. The Commission investigations became staggered when Commerce analyses submitted during the scoping 1 85 FR 86578, December 30, 2020. postponed its final determination regarding LTFV process for consideration by BOEM and 2 85 FR 80009, December 11, 2020. imports of silicon metal from Malaysia. 86 FR 7701, the cooperating agencies. 3 85 FR 78122, December 3, 2020. February 1, 2021.

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Information System (EDIS, https:// ADDRESSES: Please refer to Docket ID the NRC staff for implementing specific edis.usitc.gov.) No in-person paper- NRC–2021–0047 when contacting the parts of the agency’s regulations, based filings or paper copies of any NRC about the availability of techniques that the NRC staff uses in electronic filings will be accepted until information regarding this document. evaluating specific issues or postulated further notice. You may obtain publicly available events, and data that the NRC staff Additional written submissions to the information related to this document needs in its review of applications for Commission, including requests using any of the following methods: permits and licenses. pursuant to section 201.12 of the • Federal Rulemaking Website: Go to Revision 1 of RG 1.175 was issued Commission’s rules, shall not be https://www.regulations.gov and search with a temporary identification of Draft accepted unless good cause is shown for for Docket ID NRC–2021–0047. Address Regulatory Guide, DG–1286. It accepting such submissions, or unless questions about Docket IDs in addresses new information identified the submission is pursuant to a specific Regulations.gov to Stacy Schumann; since the previous revision of this guide request by a Commissioner or telephone: 301–415–0624; email: was issued. Commission staff. [email protected]. For technical In accordance with sections 201.16(c) questions, contact the individuals listed II. Additional Information and 207.3 of the Commission’s rules, in the FOR FURTHER INFORMATION The NRC published a notice of the each document filed by a party to the CONTACT section of this document. availability of DG–1286 (ADAMS • investigation must be served on all other NRC’s Agencywide Documents Accession No. ML19240B371), in the parties to the investigation (as identified Access and Management System Federal Register on April 6, 2021 (86 FR by either the public or BPI service list), (ADAMS): You may obtain publicly 17860), for a 30-day public comment and a certificate of service must be available documents online in the period. The public comment period timely filed. The Secretary will not ADAMS Public Documents collection at closed on May 6, 2021. The NRC has not accept a document for filing without a https://www.nrc.gov/reading-rm/ received any comments on DG–1286. certificate of service. adams.html. To begin the search, select Authority: This investigation is being ‘‘Begin Web-based ADAMS Search.’’ For III. Congressional Review Act conducted under authority of title VII of the problems with ADAMS, please contact This RG is a rule as defined in the Tariff Act of 1930; this notice is published the NRC’s Public Document Room (PDR) Congressional Review Act (5 U.S.C. pursuant to section 207.21 of the reference staff at 1–800–397–4209, 301– Commission’s rules. 801–808). However, the Office of 415–4737, or by email to pdr.resource@ Management and Budget has not found By order of the Commission. nrc.gov. The ADAMS accession number it to be a major rule as defined in the Issued: June 25, 2021. for each document referenced (if it is Congressional Review Act. Lisa Barton, available in ADAMS) is provided the Secretary to the Commission. first time that it is mentioned in this IV. Backfitting, Forward Fitting, and document. Issue Finality [FR Doc. 2021–14000 Filed 6–29–21; 8:45 am] • Attention: The PDR, where you may BILLING CODE 7020–02–P Revision 1 of RG 1.175 describes examine and order copies of public methods acceptable to the NRC staff for documents, is currently closed. You developing risk-informed inservice may submit your request to the PDR via testing and supplements the guidance NUCLEAR REGULATORY email at [email protected] or call 1– provided in RG 1.174. Issuance of this COMMISSION 800–397–4209 or 301–415–4737, RG in final form would not constitute [NRC–2021–0047] between 8:00 a.m. and 4:00 p.m. (ET), backfitting or forward fitting or affect Monday through Friday, except Federal issue finality as further discussed Plant-Specific, Risk-Informed holidays. below. Decisionmaking: Inservice Testing Revision 1 to RG 1.175 and the regulatory analysis may be found in Issuance of RG 1.175, would not AGENCY: Nuclear Regulatory constitute backfitting as defined in Commission. ADAMS under Accession Nos. ML21140A055 and ML19240B374, Section 50.109 of title 10 of the Code of ACTION: Regulatory guide; issuance. respectively. Federal Regulations (10 CFR), ‘‘Backfitting,’’ and as described in NRC SUMMARY: The U.S. Nuclear Regulatory Regulatory guides are not Management Directive (MD) 8.4, Commission (NRC) is issuing Revision 1 copyrighted, and NRC approval is not ‘‘Management of Backfitting, Forward to Regulatory Guide (RG) 1.175, ‘‘Plant- required to reproduce them. Fitting, Issue Finality, and Information Specific, Risk-Informed FOR FURTHER INFORMATION CONTACT: Requests’’; constitute forward fitting as Decisionmaking: Inservice Testing.’’ Zeechung Wang, telephone: 301–415– that term is defined and described in This RG has been revised to incorporate 1686, email: [email protected], MD 8.4; or affect the issue finality of any additional information since Revision 0 or Harriet Karagiannis, telephone: 301– approval issued under 10 CFR part 52. was issued, particularly information to 415–2493, email: Harriet.Karagiannis@ As explained in RG 1.175, applicants be consistent with the terminology and nrc.gov. Both are staff of the Office of and licensees would not be required to defense-in-depth philosophy provided Nuclear Regulatory Research, U.S. comply with the positions set forth in in RG 1.174, ‘‘An Approach for Using Nuclear Regulatory Commission, RG 1.175. Probabilistic Risk Assessment in Risk- Washington, DC 20555–0001. Dated: June 24, 2021. Informed Decisions on Plant-Specific SUPPLEMENTARY INFORMATION: Changes to the Licensing Basis,’’ as well For the Nuclear Regulatory Commission. as to endorse a standard by the I. Discussion Meraj Rahimi, American Society of Mechanical The NRC is issuing a revision in the Chief, Regulatory Guidance and Project Engineers Boiler and Pressure Vessel NRC’s ‘‘Regulatory Guide’’ series. This Management Branch, Division of Engineering, Code for Operations and Maintenance. series was developed to describe and Office of Nuclear Regulatory Research. DATES: Revision 1 to RG 1.175 is make available to the public information [FR Doc. 2021–13883 Filed 6–29–21; 8:45 am] available on June 30, 2021. regarding methods that are acceptable to BILLING CODE 7590–01–P

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NUCLEAR REGULATORY I. Obtaining Information and does not routinely edit comment COMMISSION Submitting Comments submissions to remove such information before making the comment [Docket No. 50–311; NRC–2021–0131] A. Obtaining Information submissions available to the public or Please refer to Docket ID NRC–2021– PSEG Nuclear, LLC; Exelon Generation entering the comment into ADAMS. 0131, facility name, unit number(s), Company, LLC; Salem Nuclear docket number(s), application date, and II. Introduction Generating Station, Unit No. 2 subject, if applicable, when contacting The NRC is considering issuance of AGENCY: Nuclear Regulatory the NRC about the availability of amendments to Renewed Facility Commission. information for this action. You may Operating License No. DPR–75, issued ACTION: License amendment application; obtain publicly available information to PSEG Nuclear LLC, for operation of opportunity to comment, request a related to this action by any of the the Salem Nuclear Generating Station, hearing, and petition for leave to following methods: Unit No. 2, located in Salem County, • intervene. Federal Rulemaking Website: Go to New Jersey. https://www.regulations.gov and search The proposed amendments would SUMMARY: The U.S. Nuclear Regulatory for Docket ID NRC–2021–0131. revise TS 3.1.3.2.1, ‘‘Position Indication Commission (NRC) is considering • NRC’s Agencywide Documents Systems—Operating,’’ to modify TS issuance of amendments to Renewed Access and Management System Action b.4 for more than one inoperable Facility Operating License No. DPR–75, (ADAMS): You may obtain publicly analog rod position indicator per group issued to PSEG Nuclear, LLC, for available documents online in the from 24 hours to 30 hours. This is a one- operation of the Salem Nuclear ADAMS Public Documents collection at time change during the current Generating Station, Unit No. 2. The https://www.nrc.gov/reading-rm/ operating cycle to support maintenance proposed amendments would revise adams.html. To begin the search, select on the transformer supplying power to Technical Specification (TS) actions for ‘‘Begin Web-based ADAMS Search.’’ For all of the Unit No. 2 rod position rod position indicators. This is a one- problems with ADAMS, please contact indicators. time change during the current the NRC’s Public Document Room Before any issuance of the proposed operating cycle to support maintenance reference staff at 1–800–397–4209, 301– license amendment, the NRC will need on the transformer supplying power to 415–4737, or by email to pdr.resource@ to make the findings required by the all of the Unit No. 2 rod position nrc.gov. The ADAMS accession number Atomic Energy Act of 1954, as amended indicators. for each document referenced (if it is (the Act), and NRC’s regulations. DATES: Submit comments by July 30, available in ADAMS) is provided the The NRC has made a proposed 2021. Request for a hearing or petitions first time that it is mentioned in this determination that the license for leave to intervene must be filed by document. amendment request involves no August 30, 2021. Attention: The PDR, where you may significant hazards consideration. Under examine and order copies of public ADDRESSES: the NRC’s regulations in § 50.92 of title You may submit comments documents, is currently closed. You by any of the following methods; 10 of the Code of Federal Regulations may submit your request to the PDR via (10 CFR), this means that operation of however, the NRC encourages electronic email at [email protected] or call 1– comment submission through the the facility in accordance with the 800–397–4209 or 301–415–4737, proposed amendment would not (1) Federal Rulemaking website: between 8:00 a.m. and 4:00 p.m. (EST), • Federal Rulemaking Website: Go to involve a significant increase in the Monday through Friday, except Federal https://www.regulations.gov and search probability or consequences of an holidays. for Docket ID NRC–2021–0131. Address accident previously evaluated; or (2) questions about Docket IDs in B. Submitting Comments create the possibility of a new or Regulations.gov to Stacy Schumann; different kind of accident from any The NRC encourages electronic accident previously evaluated; or (3) telephone: 301–415–0624; email: comment submission through the [email protected]. For technical involve a significant reduction in a Federal Rulemaking website (https:// margin of safety. As required by 10 CFR questions, contact the individuals listed www.regulations.gov). Please include in the FOR FURTHER INFORMATION 50.91(a), the licensee has provided its Docket ID NRC–2021–0131 in your analysis of the issue of no significant CONTACT section of this document. comment submission. • Mail comments to: Office of hazards consideration, which is The NRC cautions you not to include presented below: Administration, Mail Stop: TWFN–7– identifying or contact information that A60M, U.S. Nuclear Regulatory you do not want to be publicly 1. Does the proposed change involve a Commission, Washington, DC 20555– disclosed in your comment submission. significant increase in the probability or 0001, ATTN: Program Management, The NRC will post all comment consequences of an accident previously Announcements and Editing Staff. evaluated? submissions at https:// Response: No. For additional direction on obtaining www.regulations.gov as well as enter the information and submitting comments, Rod position indication instrumentation is comment submissions into ADAMS. not an accident initiator, providing see ‘‘Obtaining Information and The NRC does not routinely edit indication only of the control and shutdown Submitting Comments’’ in the comment submissions to remove rods positions. Normal operation, abnormal SUPPLEMENTARY INFORMATION section of identifying or contact information. occurrences and accident analyses assume this document. If you are requesting or aggregating the rods are at certain positions within the FOR FURTHER INFORMATION CONTACT: comments from other persons for reactor core. The proposed one-time change James S. Kim, Office of Nuclear Reactor submission to the NRC, then you should modifies the time that rod position indication may be inoperable. The existing TS Actions Regulation, U.S. Nuclear Regulatory inform those persons not to include Commission, Washington, DC 20555– and other plant instrumentation provide identifying or contact information that appropriate compensation for that 0001, telephone: 301–415–6606, email: they do not want to be publicly inoperability. Thus, this change does not [email protected]. disclosed in their comment submission. involve a significant increase in the SUPPLEMENTARY INFORMATION: Your request should state that the NRC probability of an accident.

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Extending the allowed outage time to However, if circumstances change significant hazards consideration, then restore inoperable rod position indicators during the notice period, such that any hearing held would take place does not affect the operability of the failure to act in a timely way would before the issuance of the amendment shutdown or control rods. With rod position result, for example, in derating or unless the Commission finds an indicators inoperable, the position of non- indicating rods is required to be verified by shutdown of the facility, the imminent danger to the health or safety indirect means (i.e., moveable incore Commission may issue the license of the public, in which case it will issue detectors). Thus, inoperable rod position amendment before the expiration of the an appropriate order or rule under 10 indication instrumentation does not involve notice period, provided that its final CFR part 2. an increase in the consequences of an determination is that the amendment A State, local governmental body, accident. The inoperable rod position involves no significant hazards Federally recognized Indian Tribe, or indication does not have any impact on the consideration. The final determination designated agency thereof, may submit ability to trip the reactor in response to will consider all public and State a petition to the Commission to analyzed accidents and transients. comments received. If the Commission participate as a party under 10 CFR Therefore, the proposed change does not 2.309(h) no later than 60 days from the represent a significant increase in the takes action prior to the expiration of probability or consequences of an accident either the comment period or the notice date of publication of this notice. previously evaluated. period, it will publish in the Federal Alternatively, a State, local 2. Does the proposed change create the Register a notice of issuance. The governmental body, Federally possibility of a new or different kind of Commission expects that the need to recognized Indian Tribe, or agency accident from any accident previously take this action will occur very thereof may participate as a non-party evaluated? infrequently. under 10 CFR 2.315(c). Response: No. For information about filing a petition The proposed change does not alter the III. Opportunity To Request a Hearing and about participation by a person not design, function, or operation of any plant and Petition for Leave To Intervene a party under 10 CFR 2.315, see ADAMS component and does not install any new or Within 60 days after the date of different equipment. The proposed change Accession No. ML20340A053 and on will not impose any new or different publication of this notice, any person the NRC website at https://www.nrc.gov/ requirement or introduce a new accident (petitioner) whose interest may be about-nrc/regulatory/adjudicatory/ initiator, accident precursor, or malfunction affected by this action may file a request hearing.html#participate. mechanism. for a hearing and petition for leave to IV. Electronic Submissions (E-Filing) Therefore, the proposed one-time change intervene (petition) with respect to the does not create the possibility of a new or action. Petitions shall be filed in All documents filed in NRC different kind of accident from any accident accordance with the Commission’s adjudicatory proceedings including previously evaluated. ‘‘Agency Rules of Practice and documents filed by an interested State, 3. Does the proposed change involve a Procedure’’ in 10 CFR part 2. Interested local governmental body, Federally significant reduction in a margin of safety? recognized Indian Tribe, or designated Response: No. persons should consult 10 CFR 2.309. If Loss of rod position indication does not a petition is filed, the presiding officer agency thereof that requests to cause a rod to be misaligned. With rod will rule on the petition and, if participate under 10 CFR 2.315(c), must position indicators inoperable, the control appropriate, a notice of a hearing will be be filed in accordance with 10 CFR rods are required to be placed in manual issued. 2.302. The E-Filing process requires control, and the position of non-indicating Petitions must be filed no later than participants to submit and serve all rods is required to be verified using indirect 60 days from the date of publication of adjudicatory documents over the means. The proposed change will not affect this notice in accordance with the filing internet, or in some cases, to mail copies the ability of the shutdown or control rods instructions in the ‘‘Electronic on electronic storage media, unless an to perform their required function. exemption permitting an alternative The proposed amendment will not result Submissions (E-Filing’’) section of this in a design basis or safety limit being document. Petitions and motions for filing method, as discussed below, is exceeded or altered. Therefore, since the leave to file new or amended granted. Detailed guidance on electronic proposed change does not impact the contentions that are filed after the submissions is located in the Guidance response of the plant to a design basis deadline will not be entertained absent for Electronic Submissions to the NRC accident, the proposed change does not a determination by the presiding officer (ADAMS Accession No. ML13031A056) involve a significant reduction in a margin of that the filing demonstrates good cause and on the NRC website at https:// safety. by satisfying the three factors in 10 CFR www.nrc.gov/site-help/e- The NRC staff has reviewed the 2.309(c)(1)(i) through (iii). submittals.html. licensee’s analysis and, based on this If a hearing is requested and the To comply with the procedural review, it appears that the 3 standards Commission has not made a final requirements of E-Filing, at least 10 of 10 CFR 50.92(c) are satisfied. determination on the issue of no days prior to the filing deadline, the Therefore, the NRC staff proposes to significant hazards consideration, the participant should contact the Office of determine that the license amendment Commission will make a final the Secretary by email at request involves no significant hazards determination on the issue of no [email protected], or by telephone consideration. significant hazards consideration, which at 301–415–1677, to (1) request a digital The NRC is seeking public comments will serve to establish when the hearing identification (ID) certificate, which on this proposed determination that the is held. If the final determination is that allows the participant (or its counsel or license amendment request involves no the amendment request involves no representative) to digitally sign significant hazards consideration. Any significant hazards consideration, the submissions and access the E-Filing comments received within 30 days after Commission may issue the amendment system for any proceeding in which it the date of publication of this notice and make it immediately effective, is participating; and (2) advise the will be considered in making any final notwithstanding the request for a Secretary that the participant will be determination. hearing. Any hearing would take place submitting a petition or other Normally, the Commission will not after issuance of the amendment. If the adjudicatory document (even in issue the amendment until the final determination is that the instances in which the participant, or its expiration of the 60 day notice period. amendment request involves a counsel or representative, already holds

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an NRC-issued digital ID certificate). documents on all other participants. SUMMARY: The U.S. Nuclear Regulatory Based upon this information, the Participants granted an exemption Commission (NRC) staff received and is Secretary will establish an electronic under 10 CFR 2.302(g)(2) must still meet considering an application for the docket for the proceeding if the the electronic formatting requirement in renewal of special nuclear materials Secretary has not already established an 10 CFR 2.302(g)(1), unless the (SNM) License No. SNM–2500, which electronic docket. participant also seeks and is granted an currently authorizes GE-Hitachi Nuclear Information about applying for a exemption from 10 CFR 2.302(g)(1). Energy Americas, LLC (GEH), to digital ID certificate is available on the Documents submitted in adjudicatory possess, transfer, and store radioactive NRC’s public website at https:// proceedings will appear in the NRC’s material at the Morris Operation. The www.nrc.gov/site-help/e-submittals/ electronic hearing docket, which is renewed license would authorize GEH getting-started.html. After a digital ID publicly available at https:// to continue to store radioactive material certificate is obtained and a docket adams.nrc.gov/ehd, unless excluded for an additional 20 years from May 31, created, the participant must submit pursuant to an order of the presiding 2022, the expiration date of the current adjudicatory documents in Portable officer. If you do not have an NRC- license. Because this license renewal Document Format. Guidance on issued digital ID certificate as described application contains Sensitive submissions is available on the NRC’s above, click ‘‘cancel’’ when the link Unclassified Non-Safeguards public website at https://www.nrc.gov/ requests certificates and you will be Information (SUNSI), an order imposes site-help/electronic-sub-ref-mat.html. A automatically directed to the NRC’s procedures to obtain access to SUNSI filing is considered complete at the time electronic hearing dockets where you for contention preparation. the document is submitted through the will be able to access any publicly DATES: A request for a hearing or NRC’s E-Filing system. To be timely, an available documents in a particular petition for leave to intervene must be electronic filing must be submitted to hearing docket. Participants are filed by August 30, 2021. Any potential the E-Filing system no later than 11:59 requested not to include personal party as defined in section 2.4 of title 10 p.m. Eastern Time on the due date. privacy information such as social of the Code of Federal Regulations (10 Upon receipt of a transmission, the E- security numbers, home addresses, or CFR) who believes access to SUNSI is Filing system timestamps the document personal phone numbers in their filings necessary to respond to this notice must and sends the submitter an email unless an NRC regulation or other law request document access by July 12, confirming receipt of the document. The requires submission of such 2021. E-Filing system also distributes an email information. With respect to that provides access to the document to ADDRESSES: Please refer to Docket ID copyrighted works, except for limited NRC–2021–0122 when contacting the the NRC’s Office of the General Counsel excerpts that serve the purpose of the and any others who have advised the NRC about the availability of adjudicatory filings and would information regarding this document. Office of the Secretary that they wish to constitute a Fair Use application, participate in the proceeding, so that the You may obtain publicly available participants should not include information related to this document filer need not serve the document on copyrighted materials in their those participants separately. Therefore, using any of the following methods: submission. • Federal Rulemaking Website: Go to applicants and other participants (or For further details with respect to this their counsel or representative) must https://www.regulations.gov and search action, see the application for license for Docket ID NRC–2021–0122. Address apply for and receive a digital ID amendment dated June 18, 2021 certificate before adjudicatory questions about Docket IDs in (ADAMS Accession No. ML21169A004). documents are filed to obtain access to Regulations.gov to Stacy Schumann; Attorney for licensee: Steven the documents via the E-Filing system. telephone: 301–415–0624; email: A person filing electronically using Fleischer, PSEG Services Corporation, [email protected]. For technical the NRC’s adjudicatory E-Filing system 80 Park Plaza, T–5, Newark, NJ 07102. questions, contact the individual listed may seek assistance by contacting the NRC Branch Chief: James G. Danna. in the FOR FURTHER INFORMATION NRC’s Electronic Filing Help Desk Dated: June 24, 2021. CONTACT section of this document. through the ‘‘Contact Us’’ link located For the Nuclear Regulatory Commission. • NRC’s Agencywide Documents on the NRC’s public website at https:// James S. Kim, Project Manager, Access and Management System www.nrc.gov/site-help/e- Plant Licensing Branch I, Division of (ADAMS): You may obtain publicly submittals.html, by email to Operating Reactor Licensing, Office of available documents online in the [email protected], or by a toll- Nuclear Reactor Regulation. ADAMS Public Documents collection at free call at 1–866–672–7640. The NRC [FR Doc. 2021–13896 Filed 6–29–21; 8:45 am] https://www.nrc.gov/reading-rm/ Electronic Filing Help Desk is available BILLING CODE 7590–01–P adams.html. To begin the search, select between 9 a.m. and 6 p.m., Eastern ‘‘Begin Web-based ADAMS Search.’’ For Time, Monday through Friday, problems with ADAMS, please contact excluding government holidays. NUCLEAR REGULATORY the NRC’s Public Document Room (PDR) Participants who believe that they COMMISSION reference staff at 1–800–397–4209, 301– have good cause for not submitting 415–4737, or by email to pdr.resource@ documents electronically must file an [Docket No. 72–01; NRC–2021–0122] nrc.gov. The ADAMS accession number exemption request, in accordance with for each document referenced (if it is 10 CFR 2.302(g), with their initial paper GE-Hitachi Nuclear Energy Americas, available in ADAMS) is provided the filing stating why there is good cause for LLC; Morris Operation first time that it is mentioned in this not filing electronically and requesting AGENCY: Nuclear Regulatory document. • authorization to continue to submit Commission. Attention: The PDR, where you may documents in paper format. Such filings examine and order copies of public ACTION: License renewal application; must be submitted in accordance with documents, is currently closed. You opportunity to request a hearing and to 10 CFR 2.302(b)–(d). Participants filing may submit your request to the PDR via petition for leave to intervene; order adjudicatory documents in this manner email at [email protected] or call 1– imposing procedures. are responsible for serving their 800–397–4209 or 301–415–4737,

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between 8:00 a.m. and 4:00 p.m. (ET), warranted or if an environmental on electronic storage media, unless an Monday through Friday, except Federal assessment and finding of no significant exemption permitting an alternative holidays. impact are appropriate. This action will filing method, as discussed below, is FOR FURTHER INFORMATION CONTACT: be the subject of a subsequent notice in granted. Detailed guidance on electronic Kristina L. Banovac, Office of Nuclear the Federal Register. submissions is located in the Guidance Material Safety and Safeguards, U.S. II. Opportunity To Request a Hearing for Electronic Submissions to the NRC Nuclear Regulatory Commission, and Petition for Leave To Intervene (ADAMS Accession No. ML13031A056) Washington, DC 20555–0001, telephone: and on the NRC website at https:// 301–415–7116, email: Within 60 days after the date of www.nrc.gov/site-help/e- [email protected]. publication of this notice, any person submittals.html. (petitioner) whose interest may be SUPPLEMENTARY INFORMATION: To comply with the procedural affected by this action may file a request requirements of E-Filing, at least 10 I. Introduction for a hearing and petition for leave to days prior to the filing deadline, the intervene (petition) with respect to the The NRC staff received, by letter participant should contact the Office of action. Petitions shall be filed in dated June 30, 2020, as supplemented the Secretary by email at accordance with the Commission’s by letters dated February 26, 2021, [email protected], or by telephone ‘‘Agency Rules of Practice and at 301–415–1677, to (1) request a digital March 19, 2021, and March 24, 2021, an Procedure’’ in 10 CFR part 2. Interested application from GEH for renewal of identification (ID) certificate, which persons should consult 10 CFR 2.309. If allows the participant (or its counsel or SNM License No. SNM–2500 for the a petition is filed, the presiding officer representative) to digitally sign Morris Operation for an additional 20 will rule on the petition and, if submissions and access the E-Filing years (ADAMS Accession Nos. appropriate, a notice of a hearing will be system for any proceeding in which it ML20182A699 (Package), issued. is participating; and (2) advise the ML21057A119 (Package), Petitions must be filed no later than Secretary that the participant will be ML21085A859, and ML21083A200 60 days from the date of publication of submitting a petition or other (Package)). The license authorizes GEH this notice in accordance with the filing adjudicatory document (even in to possess, transfer, and store instructions in the ‘‘Electronic instances in which the participant, or its radioactive material at the Morris Submissions (E-Filing’’) section of this counsel or representative, already holds Operation located in Grundy County, document. Petitions and motions for an NRC-issued digital ID certificate). Illinois, near Morris, Illinois. This leave to file new or amended Based upon this information, the license renewal, if approved, would contentions that are filed after the Secretary will establish an electronic authorize GEH to continue to store deadline will not be entertained absent docket for the proceeding if the radioactive material at the Morris a determination by the presiding officer Secretary has not already established an Operation, under the provisions of 10 that the filing demonstrates good cause electronic docket. CFR part 72, ‘‘Licensing Requirements by satisfying the three factors in 10 CFR for the Independent Storage of Spent 2.309(c)(1)(i) through (iii). Information about applying for a Nuclear Fuel, High-Level Radioactive A State, local governmental body, digital ID certificate is available on the Waste, and Reactor-Related Greater Federally recognized Indian Tribe, or NRC’s public website at https:// Than Class C Waste.’’ No additional designated agency thereof, may submit www.nrc.gov/site-help/e-submittals/ radioactive material will be authorized a petition to the Commission to getting-started.html. After a digital ID for storage under the license renewal, if participate as a party under 10 CFR certificate is obtained and a docket approved. 2.309(h) no later than 60 days from the created, the participant must submit Following an NRC administrative date of publication of this notice. adjudicatory documents in Portable completeness review, documented in a Alternatively, a State, local Document Format (PDF). Guidance on letter to GEH dated April 20, 2021 governmental body, Federally submissions is available on the NRC’s (ADAMS Accession No. ML21104A080), recognized Indian Tribe, or agency public website at https://www.nrc.gov/ the NRC staff determined that the thereof may participate as a non-party site-help/electronic-sub-ref-mat.html. A renewal application contains sufficient under 10 CFR 2.315(c). filing is considered complete at the time information for the NRC to begin its For information about filing a petition the document is submitted through the technical review and the application is and about participation by a person not NRC’s E-Filing system. To be timely, an acceptable for docketing. The a party under 10 CFR 2.315, see ADAMS electronic filing must be submitted to application is docketed in Docket No. Accession No. ML20340A053 and on the E-Filing system no later than 11:59 72–01, the existing docket for SNM the NRC website at https://www.nrc.gov/ p.m. (ET) on the due date. Upon receipt License No. SNM–2500. If the NRC about-nrc/regulatory/adjudicatory/ of a transmission, the E-Filing system approves the renewal application, the hearing.html#participate. timestamps the document and sends the approval will be documented in the submitter an email confirming receipt of renewal of SNM License No. SNM– III. Electronic Submissions (E-Filing) the document. The E-Filing system also 2500. The NRC will approve the license All documents filed in NRC distributes an email that provides access renewal application if it determines that adjudicatory proceedings including to the document to the NRC’s Office of the application meets the standards and documents filed by an interested State, the General Counsel and any others who requirements of the Atomic Energy Act local governmental body, Federally have advised the Office of the Secretary of 1954, as amended (the Act), and the recognized Indian Tribe, or designated that they wish to participate in the NRC’s regulations. These findings will agency thereof that requests to proceeding, so that the filer need not be documented in a safety evaluation participate under 10 CFR 2.315(c), must serve the document on those report. The NRC will complete an be filed in accordance with 10 CFR participants separately. Therefore, environmental evaluation, in 2.302. The E-Filing process requires applicants and other participants (or accordance with 10 CFR part 51, to participants to submit and serve all their counsel or representative) must determine if the preparation of an adjudicatory documents over the apply for and receive a digital ID environmental impact statement is internet, or in some cases, to mail copies certificate before adjudicatory

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documents are filed to obtain access to Order Imposing Procedures for Access versions of the information requested the documents via the E-Filing system. to Sensitive Unclassified Non- would not be sufficient to provide the A person filing electronically using Safeguards Information for Contention basis and specificity for a proffered the NRC’s adjudicatory E-Filing system Preparation contention. D. Based on an evaluation of the A. This Order contains instructions may seek assistance by contacting the information submitted under paragraph regarding how potential parties to this NRC’s Electronic Filing Help Desk C.(3) the NRC staff will determine proceeding may request access to through the ‘‘Contact Us’’ link located within 10 days of receipt of the request documents containing SUNSI. on the NRC’s public website at https:// whether: www.nrc.gov/site-help/e- B. Within 10 days after publication of (1) There is a reasonable basis to submittals.html, by email to this notice of hearing and opportunity to believe the petitioner is likely to [email protected], or by a toll- petition for leave to intervene, any establish standing to participate in this free call at 1–866–672–7640. The NRC potential party who believes access to NRC proceeding; and Electronic Filing Help Desk is available SUNSI is necessary to respond to this (2) The requestor has established a notice may request access to SUNSI. A between 9 a.m. and 6 p.m., (ET), legitimate need for access to SUNSI. ‘‘potential party’’ is any person who Monday through Friday, excluding E. If the NRC staff determines that the intends to participate as a party by government holidays. requestor satisfies both D.(1) and D.(2) demonstrating standing and filing an above, the NRC staff will notify the Participants who believe that they admissible contention under 10 CFR requestor in writing that access to have good cause for not submitting 2.309. Requests for access to SUNSI SUNSI has been granted. The written documents electronically must file an submitted later than 10 days after notification will contain instructions on exemption request, in accordance with publication of this notice will not be how the requestor may obtain copies of 10 CFR 2.302(g), with their initial paper considered absent a showing of good the requested documents, and any other filing stating why there is good cause for cause for the late filing, addressing why conditions that may apply to access to not filing electronically and requesting the request could not have been filed those documents. These conditions may authorization to continue to submit earlier. include, but are not limited to, the documents in paper format. Such filings C. The requestor shall submit a letter signing of a Non-Disclosure Agreement must be submitted in accordance with requesting permission to access SUNSI or Affidavit, or Protective Order 2 setting 10 CFR 2.302(b)–(d). Participants filing to the Office of the Secretary, U.S. forth terms and conditions to prevent adjudicatory documents in this manner Nuclear Regulatory Commission, the unauthorized or inadvertent are responsible for serving their Washington, DC 20555–0001, Attention: disclosure of SUNSI by each individual documents on all other participants. Rulemakings and Adjudications Staff, who will be granted access to SUNSI. and provide a copy to the Deputy Participants granted an exemption F. Filing of Contentions. Any General Counsel for Hearings and under 10 CFR 2.302(g)(2) must still meet contentions in these proceedings that Administration, Office of the General the electronic formatting requirement in are based upon the information received Counsel, U.S. Nuclear Regulatory as a result of the request made for 10 CFR 2.302(g)(1), unless the Commission, Washington, DC 20555– participant also seeks and is granted an SUNSI must be filed by the requestor no 0001. The expedited delivery or courier later than 25 days after receipt of (or exemption from 10 CFR 2.302(g)(1). mail address for both offices is: U.S. access to) that information. However, if Documents submitted in adjudicatory Nuclear Regulatory Commission, 11555 more than 25 days remain between the proceedings will appear in the NRC’s Rockville Pike, Rockville, Maryland petitioner’s receipt of (or access to) the electronic hearing docket, which is 20852. The email address for the Office information and the deadline for filing publicly available at https:// of the Secretary and the Office of the all other contentions (as established in adams.nrc.gov/ehd, unless excluded General Counsel are Hearing.Docket@ the notice of hearing or opportunity for pursuant to an order of the presiding nrc.gov and hearing), the petitioner may file its officer. If you do not have an NRC- [email protected], SUNSI contentions by that later issued digital ID certificate as described respectively.1 The request must include deadline. above, click ‘‘cancel’’ when the link the following information: G. Review of Denials of Access. requests certificates and you will be (1) A description of the licensing (1) If the request for access to SUNSI automatically directed to the NRC’s action with a citation to this Federal is denied by the NRC staff after a electronic hearing dockets where you Register notice; determination on standing and requisite (2) The name and address of the will be able to access any publicly need, the NRC staff shall immediately potential party and a description of the available documents in a particular notify the requestor in writing, briefly potential party’s particularized interest stating the reason or reasons for the hearing docket. Participants are that could be harmed by the action denial. requested not to include personal identified in C.(1); and (2) The requestor may challenge the privacy information such as social (3) The identity of the individual or NRC staff’s adverse determination by security numbers, home addresses, or entity requesting access to SUNSI and filing a challenge within 5 days of personal phone numbers in their filings the requestor’s basis for the need for the receipt of that determination with: (a) unless an NRC regulation or other law information in order to meaningfully The presiding officer designated in this requires submission of such participate in this adjudicatory proceeding; (b) if no presiding officer information. With respect to proceeding. In particular, the request has been appointed, the Chief copyrighted works, except for limited must explain why publicly available Administrative Judge, or if he or she is excerpts that serve the purpose of the adjudicatory filings and would 1 While a request for hearing or petition to 2 Any motion for Protective Order or draft Non- constitute a Fair Use application, intervene in this proceeding must comply with the Disclosure Affidavit or Agreement for SUNSI must participants should not include filing requirements of the NRC’s ‘‘E-Filing Rule,’’ be filed with the presiding officer or the Chief the initial request to access SUNSI under these Administrative Judge if the presiding officer has not copyrighted materials in their procedures should be submitted as described in this yet been designated, within 30 days of the deadline submission. paragraph. for the receipt of the written access request.

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unavailable, another administrative officer has been appointed, the Chief any other reviewing officers) will judge, or an Administrative Law Judge Administrative Judge, or if he or she is consider and resolve requests for access with jurisdiction pursuant to 10 CFR unavailable, another administrative to SUNSI, and motions for protective 2.318(a); or (c) if another officer has judge, or an Administrative Law Judge orders, in a timely fashion in order to been designated to rule on information with jurisdiction pursuant to 10 CFR minimize any unnecessary delays in access issues, with that officer. 2.318(a); or (c) if another officer has identifying those petitioners who have (3) Further appeals of decisions under been designated to rule on information standing and who have propounded this paragraph must be made pursuant access issues, with that officer. contentions meeting the specificity and to 10 CFR 2.311. If challenges to the NRC staff basis requirements in 10 CFR part 2. H. Review of Grants of Access. A determinations are filed, these The attachment to this Order party other than the requestor may procedures give way to the normal summarizes the general target schedule challenge an NRC staff determination process for litigating disputes granting access to SUNSI whose release concerning access to information. The for processing and resolving requests would harm that party’s interest availability of interlocutory review by under these procedures. independent of the proceeding. Such a the Commission of orders ruling on It is so ordered. challenge must be filed within 5 days of such NRC staff determinations (whether Dated: June 24, 2021. the notification by the NRC staff of its granting or denying access) is governed grant of access and must be filed with: by 10 CFR 2.311.3 For the Nuclear Regulatory Commission. (a) The presiding officer designated in I. The Commission expects that the Annette L. Vietti-Cook, this proceeding; (b) if no presiding NRC staff and presiding officers (and Secretary of the Commission.

ATTACHMENT 1—GENERAL TARGET SCHEDULE FOR PROCESSING AND RESOLVING REQUESTS FOR ACCESS TO SENSITIVE UNCLASSIFIED NON-SAFEGUARDS INFORMATION IN THIS PROCEEDING

Day Event/activity

0 ...... Publication of Federal Register notice of hearing and opportunity to petition for leave to intervene, including order with instructions for access requests. 10 ...... Deadline for submitting requests for access to Sensitive Unclassified Non-Safeguards Information (SUNSI) with information: Supporting the standing of a potential party identified by name and address; describing the need for the information in order for the potential party to participate meaningfully in an adjudicatory proceeding. 60 ...... Deadline for submitting petition for intervention containing: (i) Demonstration of standing; and (ii) all contentions whose formu- lation does not require access to SUNSI (+25 Answers to petition for intervention; +7 petitioner/requestor reply). 20 ...... U.S. Nuclear Regulatory Commission (NRC) staff informs the requestor of the staff’s determination whether the request for access provides a reasonable basis to believe standing can be established and shows need for SUNSI. (NRC staff also informs any party to the proceeding whose interest independent of the proceeding would be harmed by the release of the information.) If NRC staff makes the finding of need for SUNSI and likelihood of standing, NRC staff begins document processing (preparation of redactions or review of redacted documents). 25 ...... If NRC staff finds no ‘‘need’’ or no likelihood of standing, the deadline for petitioner/requestor to file a motion seeking a ruling to reverse the NRC staff’s denial of access; NRC staff files copy of access determination with the presiding officer (or Chief Administrative Judge or other designated officer, as appropriate). If NRC staff finds ‘‘need’’ for SUNSI, the deadline for any party to the proceeding whose interest independent of the proceeding would be harmed by the release of the information to file a motion seeking a ruling to reverse the NRC staff’s grant of access. 30 ...... Deadline for NRC staff reply to motions to reverse NRC staff determination(s). 40 ...... (Receipt +30) If NRC staff finds standing and need for SUNSI, deadline for NRC staff to complete information processing and file motion for Protective Order and draft Non-Disclosure Affidavit. Deadline for applicant/licensee to file Non-Disclosure Agreement for SUNSI. A ...... If access granted: Issuance of presiding officer or other designated officer decision on motion for protective order for access to sensitive information (including schedule for providing access and submission of contentions) or decision reversing a final adverse determination by the NRC staff. A + 3 ...... Deadline for filing executed Non-Disclosure Affidavits. Access provided to SUNSI consistent with decision issuing the protective order. A + 28 ...... Deadline for submission of contentions whose development depends upon access to SUNSI. However, if more than 25 days remain between the petitioner’s receipt of (or access to) the information and the deadline for filing all other contentions (as established in the notice of opportunity to request a hearing and petition for leave to intervene), the petitioner may file its SUNSI contentions by that later deadline. A + 53 ...... (Contention receipt +25) Answers to contentions whose development depends upon access to SUNSI. A + 60 ...... (Answer receipt +7) Petitioner/Intervenor reply to answers. >A + 60 ...... Decision on contention admission.

[FR Doc. 2021–13891 Filed 6–29–21; 8:45 am] BILLING CODE 7590–01–P

3 Requestors should note that the filing 46562; August 3, 2012) apply to appeals of NRC applicable), but not to the initial SUNSI request requirements of the NRC’s E-Filing Rule (72 FR staff determinations (because they must be served submitted to the NRC staff under these procedures. 49139; August 28, 2007, as amended at 77 FR on a presiding officer or the Commission, as

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NUCLEAR REGULATORY I. Obtaining Information and submissions available to the public or COMMISSION Submitting Comments entering the comment into ADAMS. [NRC–2021–0112] A. Obtaining Information II. Discussion Fuel Qualification for Advanced Please refer to Docket ID NRC–2021– Proposed advanced reactor designs Reactors 0112 when contacting the NRC about use fuel designs and operating the availability of information for this environments (e.g., neutron energy AGENCY: Nuclear Regulatory action. You may obtain publicly spectra, fuel temperatures, neighboring Commission. available information related to this materials) that differ from the large ACTION: Draft NUREG; request for action by any of the following methods: • experience base available for traditional comment. Federal Rulemaking Website: Go to light-water reactor fuel. The purpose of https://www.regulations.gov and search SUMMARY: The U.S. Nuclear Regulatory this report is to identify criteria that will for Docket ID NRC–2021–0112. be useful for advanced reactor designs Commission (NRC) is issuing for public • NRC’s Agencywide Documents comment a draft NUREG, NUREG–2246, through an assessment framework that Access and Management System would support regulatory findings ‘‘Fuel Qualification for Advanced (ADAMS): You may obtain publicly Reactors.’’ The purpose of this NUREG associated with nuclear fuel available documents online in the qualification. The report begins by report is to provide a fuel qualification ADAMS Public Documents collection at assessment framework for use by examining the regulatory basis and https://www.nrc.gov/reading-rm/ related guidance applicable to fuel applicants. Specifically, the framework adams.html. To begin the search, select provides objective criteria, derived from qualification, noting that the role of ‘‘Begin Web-based ADAMS Search.’’ For nuclear fuel in the protection against the regulatory requirements, that when problems with ADAMS, please contact satisfied, would support regulatory release of radioactivity for a nuclear the NRC’s Public Document Room (PDR) facility depends heavily on the reactor findings for licensing. reference staff at 1–800–397–4209, 301– DATES: Submit comments by August 30, design. The report considers the use of 415–4737, or by email to pdr.resource@ accelerated fuel qualification techniques 2021. Comments received after this date nrc.gov. The draft NUREG, NUREG– will be considered if it is practical to do and lead test specimen programs that 2246, ‘‘Fuel Qualification for Advanced may shorten the timeline for qualifying so, but the Commission is able to ensure Reactors’’ is available in ADAMS under fuel for use in a nuclear reactor at the consideration only for comments Accession No. ML21168A063. desired parameters (e.g., burnup). The received before this date. • Attention: The PDR, where you may ADDRESSES: You may submit comments assessment framework particularly examine and order copies of public emphasizes the identification of key fuel by any of the following methods; documents, is currently closed. You however, the NRC encourages electronic manufacturing parameters, the may submit your request to the PDR via specification of a fuel performance comment submission through the email at [email protected] or call 1– envelope to inform testing requirements, Federal Rulemaking website: 800–397–4209 or 301–415–4737, • the use of evaluation models in the fuel Federal Rulemaking Website: Go to between 8:00 a.m. and 4:00 p.m. (EST), qualification process, and the https://www.regulations.gov and search Monday through Friday, except Federal assessment of the experimental data for Docket ID NRC–2021–0112. Address holidays. questions about Docket IDs in used to develop and validate evaluation Regulations.gov to Stacy Schumann; B. Submitting Comments models and empirical safety criteria. telephone: 301–415–0624; email: The NRC encourages electronic Dated: June 25, 2021. [email protected]. For technical comment submission through the For the Nuclear Regulatory Commission. questions, contact the individuals listed Federal Rulemaking website (https:// John P. Segala, in the FOR FURTHER INFORMATION www.regulations.gov). Please include Chief, Advanced Reactor Policy Branch, CONTACT section of this document. Docket ID NRC–2021–1112 in your • Division of Advanced Reactors and Non- Mail comments to: Office of comment submission. Administration, Mail Stop: TWFN–7– Power Production and Utilization Facilities, The NRC cautions you not to include Office of Nuclear Reactor Regulation. A60M, U.S. Nuclear Regulatory identifying or contact information that [FR Doc. 2021–13955 Filed 6–29–21; 8:45 am] Commission, Washington, DC 20555– you do not want to be publicly BILLING CODE 7590–01–P 0001, ATTN: Program Management, disclosed in your comment submission. Announcements and Editing Staff. The NRC will post all comment For additional direction on obtaining submissions at https:// information and submitting comments, NUCLEAR REGULATORY www.regulations.gov as well as enter the COMMISSION see ‘‘Obtaining Information and comment submissions into ADAMS. Submitting Comments’’ in the The NRC does not routinely edit SUPPLEMENTARY INFORMATION section of comment submissions to remove [Docket Nos. 50–445 and 50–446; NRC– this document. identifying or contact information. 2020–0110] FOR FURTHER INFORMATION CONTACT: If you are requesting or aggregating Issuance of Multiple Exemptions in Timothy Drzewiecki, telephone: 301– comments from other persons for 415–5184, email: Timothy.Drzewiecki@ Response to COVID–19 Public Health submission to the NRC, then you should Emergency nrc.gov and Jordan Hoellman, inform those persons not to include telephone: 301–415–5481, email: identifying or contact information that [email protected]. Both are AGENCY: Nuclear Regulatory they do not want to be publicly Commission. staff of the Office of Nuclear Reactor disclosed in their comment submission. Regulation, U.S. Nuclear Regulatory Your request should state that the NRC ACTION: Exemptions; issuance. Commission, Washington, DC 20555– does not routinely edit comment 0001. submissions to remove such information SUMMARY: The U.S. Nuclear Regulatory SUPPLEMENTARY INFORMATION: before making the comment Commission (NRC) issued two

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exemptions in response to requests from may submit your request to the PDR via The exemption from certain one licensee. The exemptions afford the email at [email protected] or call 1– requirements of 10 CFR part 73, licensee temporary relief from certain 800–397–4209 or 301–415–4737, appendix B, ‘‘General Criteria for requirements under NRC regulations. between 8:00 a.m. and 4:00 p.m. (ET), Security Personnel,’’ section VI, The exemptions are in response to the Monday through Friday, except Federal ‘‘Nuclear Power Reactor Training and licensee’s requests for relief due to the holidays. Qualification Plan for Personnel coronavirus 2019 disease (COVID–19) FOR FURTHER INFORMATION CONTACT: Performing Security Program Duties,’’ public health emergency (PHE). The James Danna, Office of Nuclear Reactor for Vistra Operations Company LLC (for NRC is issuing a single notice to Regulation, U.S. Nuclear Regulatory Comanche Peak Nuclear Power Plant, announce the issuance of the Commission, Washington, DC 20555– Unit Nos. 1 and 2) ensures that these exemptions. 0001; telephone: 301–415–7422, email: regulatory requirements do not unduly DATES: During the period from May 17, [email protected]. limit licensee flexibility in using 2021, to May 19, 2021, the NRC granted SUPPLEMENTARY INFORMATION: personnel resources to most effectively manage the impacts of the COVID–19 two exemptions in response to requests I. Introduction submitted by one licensee from April PHE on maintaining the safe and secure 16, 2021, to April 21, 2021. During the period from May 17, 2021, operation of this facility and the to May 19, 2021, the NRC granted two implementation of the licensee’s NRC- ADDRESSES: Please refer to Docket ID exemptions in response to requests approved security plans, protective NRC–2020–0110 when contacting the submitted by one licensee from April strategy, and implementing procedures. NRC about the availability of 16, 2021, to April 21, 2021. These The licensee has committed to certain information regarding this document. exemptions temporarily allow the security measures to ensure response You may obtain publicly available licensee to deviate from certain readiness and for its security personnel information related to this document requirements (as cited in this notice) of to maintain performance capability. using any of the following methods: various parts of chapter I of title 10 of • The NRC is providing compiled tables Federal Rulemaking Website: Go to the Code of Federal Regulations (10 of exemptions using a single Federal https://www.regulations.gov and search CFR). for Docket ID NRC–2020–0110. Address The exemption from certain Register notice for COVID–19 related questions about Docket IDs in requirements of 10 CFR part 50, exemptions instead of issuing Regulations.gov to Stacy Schumann; appendix E, ‘‘Emergency Planning and individual Federal Register notices for telephone: 301–415–0624; email: Preparedness for Production and each exemption. The compiled tables in [email protected]. For technical Utilization Facilities,’’ section IV.F., this notice provide transparency questions, contact the individual listed ‘‘Training,’’ for Vistra Operations regarding the number and type of in the FOR FURTHER INFORMATION Company LLC (for Comanche Peak exemptions the NRC has issued. CONTACT section of this document. Nuclear Power Plant, Unit Nos. 1 and 2), Additionally, the NRC publishes tables • NRC’s Agencywide Documents grants a temporary exemption from the of approved regulatory actions related to Access and Management System offsite biennial emergency preparedness the COVID–19 PHE on its public (ADAMS): You may obtain publicly exercise requirement. The exemption website at https://www.nrc.gov/about- available documents online in the affords this licensee temporary relief nrc/covid-19/reactors/licensing- ADAMS Public Documents collection at from the requirements of 10 CFR part actions.html. https://www.nrc.gov/reading-rm/ 50, appendix E, regarding offsite II. Availability of Documents adams.html. To begin the search, select response organization (ORO) ‘‘Begin Web-based ADAMS Search.’’ For participation in the biennial emergency The tables in this notice provide the problems with ADAMS, please contact preparedness exercise for calendar year facility name, docket number, document the NRC’s Public Document Room (PDR) 2021. This exemption will not adversely description, and ADAMS accession reference staff at 1–800–397–4209, 301– affect the emergency response capability number for each exemption issued. 415–4737, or by email to pdr.resource@ of the facility because the licensee has Additional details on each exemption nrc.gov. For the convenience of the conducted numerous drills, exercises, issued, including the exemption request reader, instructions about obtaining and other training activities that have submitted by the respective licensee and materials referenced in this document exercised the licensee’s emergency the NRC’s decision, are provided in are provided in the ‘‘Availability of response strategies since the last each exemption approval listed in the Documents’’ section. evaluated biennial emergency tables in this notice. For additional • Attention: The PDR, where you may preparedness exercise and that State, directions on accessing information in examine and order copies of public county and local OROs have ADAMS, see the ADDRESSES section of documents, is currently closed. You participated therein. this document.

COMANCHE PEAK NUCLEAR POWER PLANT, UNIT NOS. 1 AND 2 DOCKET NOS. 50–445 AND 50–446

ADAMS accession Document description No.

Comanche Peak Nuclear Power Plant, Unit Nos. 1 and 2—One-Time Request for Exemption from the Biennial Emergency Preparedness Exercise Requirements in 10 CFR part 50, appendix E, sections IV.F.2.b and IV.F.2.c, dated April 21, 2021 ML21111A364 Comanche Peak Nuclear Power Plant, Unit Nos. 1 and 2—Temporary Exemption from Requirements of 10 CFR part 50, appendix E, sections IV.F.2.b and IV.F.2.c (EPID L–2021–LLE–0028 [COVID–19]), dated May 17, 2021 ...... ML21119A349 Comanche Peak Nuclear Power Plant, Unit Nos. 1 and 2—Request for a Temporary Exemption from 10 CFR part 73, appendix B, section VI, subsection A.7 Regarding Annual Force-on-Force (FOF) Exercises, due to COVID–19 PHE, dated April 16, 2021 ...... ML21106A293

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COMANCHE PEAK NUCLEAR POWER PLANT, UNIT NOS. 1 AND 2—Continued DOCKET NOS. 50–445 AND 50–446

ADAMS accession Document description No.

Comanche Peak Nuclear Power Plant, Unit Nos. 1 and 2—Supplemental Information Regarding Request for a Temporary Exemption from 10 CFR part 73, appendix B, section VI, subsection A.7 Regarding Annual Force-on-Force (FOF) Exer- cises [COVID–19], dated May 12, 2021 ...... ML21132A126 Comanche Peak Nuclear Power Plant, Unit Nos. 1 and 2—Temporary Exemption from Annual Force-on-Force Exercise Re- quirement of 10 CFR part 73, appendix B, ‘‘General Criteria for Security Personnel,’’ subsection A.7 (EPID L–2021–LLE– 0024 [COVID–19]), dated May 19, 2021 ...... ML21133A003

Dated: June 24, 2021. SUPPLEMENTARY INFORMATION: As Additionally, the form cautions the For the Nuclear Regulatory Commission. required by the Paperwork Reduction applicant that the person designated James G. Danna, Act of 1995 OPM is soliciting comments will be paid even if that person’s name Chief, Plant Licensing Branch I, Division of for this collection. The information or relationship to the designator Operating Reactor Licensing, Office of collection (OMB No. 3206–0173) was changes after the form is filed. We Nuclear Reactor Regulation. previously published in the Federal revised the instructions to indicate that [FR Doc. 2021–13887 Filed 6–29–21; 8:45 am] Register on August 13, 2020 at 85 FR the employee subject to CSRS should BILLING CODE 7590–01–P 49402, allowing for a 60-day public send both copies of the revised SF 3102 comment period. One comment was to OPM who will validate the form and received: ‘‘The SSA agrees that provide a copy to the employee for their combining the SF 2808 and SF 3102 records. We indicated that the OFFICE OF PERSONNEL simplifies the process and eliminates employing agency does not maintain the MANAGEMENT the possibility of invalid designations form of the CSRS employee.’’ and (2) due to the completion of the incorrect ‘‘By regulation, employees are not Submission for Review: 3206–0173, form. Since OPM maintains all SF 2808 allowed to use electronic signatures or CSRS/FERS Designation of forms, agencies do not have access to PIV/CAC cards to sign the SF 3102, Beneficiary, Standard Form 3102 previously filed forms to respond to Designation of Beneficiary form. Title 5, AGENCY: Office of Personnel employee requests for information. This Code of Federal Regulations on CSRS Management. may be problematic when employees are designations states that a designation of assessing the need to update their ACTION: 30-Day notice and request for beneficiary must be in writing, signed records. The new SF 3102 should comments. and witnessed and received in the indicate that agencies do not maintain employing office (or in OPM, in the case SUMMARY: Retirement Services, Office of the CSRS designation forms and provide of a retiree, or compensationer, or a Personnel Management (OPM) offers the instructions for employees to complete a separated employee) before the death of general public and other federal new form if they are unsure if they have the designator. Therefore, no changes agencies the opportunity to comment on previously completed a designation or will be made to the signature and a revised information collection request are unsure about whom they have witness requirement because there are (ICR), CSRS/FERS Designation of previously designated. Otherwise, the no changes to the appropriate Beneficiary, Standard Form 3102. form should indicate that employees regulation.’’ The Office of Management must contact OPM for information about DATES: and Budget is particularly interested in Comments are encouraged and previously filed SF 2808 forms. The SSA will be accepted until July 30, 2021. comments that: suggests that, in addition to accepting 1. Evaluate whether the proposed ADDRESSES: Interested persons are wet signatures on the retirement collection of information is necessary invited to submit written comments on designation beneficiary forms, OPM for the proper performance of functions the proposed information collection to accept digital signatures using PIV of the agency, including whether the the Office of Information and Regulatory credentials by employees and HR information will have practical utility; Affairs, Office of Management and offices. Forms with validated digital 2. Evaluate the accuracy of the Budget, 725 17th Street NW, employee signatures using PIV agency’s estimate of the burden of the Washington, DC 20503, Attention: Desk credentials should not require witness proposed collection of information, Officer for the Office of Personnel signatures. Since it is crucial for including the validity of the Management or sent via electronic mail employees keeping their designation _ methodology and assumptions used; to: oira [email protected] or forms up to date, having a mechanism 3. Enhance the quality, utility, and faxed to (202) 395–6974. for electronic submission provides for clarity of the information to be FOR FURTHER INFORMATION CONTACT: A more timely submission by employee collected; and copy of this ICR with applicable and certification by HR offices’’. Our 4. Minimize the burden of the supporting documentation, may be response is: (1) ‘‘Filing a designation is collection of information on those who obtained by contacting the Retirement not needed if the person is satisfied with are to respond, including through the Services Publications Team, Office of the federal order of precedence for use of appropriate automated, Personnel Management, 1900 E Street payment of lump-sum payment under electronic, mechanical, or other NW, Room 3316–L, Washington, DC CSRS or FERS. Furthermore, individuals technological collection techniques or 20415, Attention: Cyrus S. Benson, or receive a copy of the form that is filed other forms of information technology, sent via electronic mail to with the employing agency or OPM and e.g., permitting electronic submissions [email protected] or faxed to can access their personal records to of responses. (202) 606–0910 or via telephone at (202) determine whether there is a need to Standard Form 3102, CSRS/FERS 606–4808. update a previously filed form. Designation of Beneficiary, is used by an

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employee or annuitant covered under applicable supporting documentation, Estimated Time per Respondent: 1 the Civil Service Retirement System or may be obtained by contacting the Hour. the Federal Employees Retirement Retirement Services Publications Team, Total Burden Hours: 250 hours. System to designate a beneficiary to Office of Personnel Management, 1900 E U.S. Office of Personnel Management. receive any lump sum due in the event Street NW, Room 3316–L, Washington, Kellie Cosgrove Riley, of his/her death. The SF 3102 (FERS DC 20415, Attention: Cyrus S. Benson, Designation of Beneficiary) is being or sent via electronic mail to Director, Office of Privacy and Information Management. combined with the SF 2808 (CSRS [email protected] or faxed to Designation of Beneficiary). The (202) 606–0910 or reached via telephone [FR Doc. 2021–13899 Filed 6–29–21; 8:45 am] proposed version of SF 3102 will at (202) 606–4808. BILLING CODE 6325–38–P supersede all previous editions of SF SUPPLEMENTARY INFORMATION: As 2808 and SF 3102. required by the Paperwork Reduction OFFICE OF PERSONNEL Analysis Act of 1995, (Pub. L. 104–13, 44 U.S.C. MANAGEMENT chapter 35) as amended by the Clinger- Agency: Retirement Operations, Cohen Act (Pub. L. 104–106), OPM is Submission for Review: Standard Retirement Services, Office of Personnel soliciting comments for this collection. Form 2800—Application for Death Management. The information collection (OMB No. Title: CSRS/FERS Designation of Benefits Under the Civil Service 3206–0206) was previously published in Beneficiary. Retirement System (CSRS); Standard OMB Number: 3206–0173. the Federal Register on April 2, 2021, Form 2800A—Documentation and Frequency: On occasion. at 86 FR 17418, allowing for a 60-day Elections in Support of Application for Affected Public: Individuals or public comment period. No comments Death Benefits When Deceased Was Households. were received for this collection. The an Employee at the Time of Death Number of Respondents: 5,888. purpose of this notice is to allow an (CSRS) Estimated Time per Respondent: 15 additional 30 days for public comments. minutes. The Office of Management and Budget AGENCY: Office of Personnel Total Burden Hours: 1,472. is particularly interested in comments Management. Office of Personnel Management. that: ACTION: 30-Day notice and request for 1. Evaluate whether the proposed Kellie C. Riley, comments. collection of information is necessary Director, Office of Privacy and Information for the proper performance of the SUMMARY: Management. Retirement Services, Office of functions of the agency, including Personnel Management (OPM) offers the [FR Doc. 2021–13898 Filed 6–29–21; 8:45 am] whether the information will have general public and other federal BILLING CODE 6325–38–P practical utility; agencies the opportunity to comment on 2. Evaluate the accuracy of the an expiring information collection OFFICE OF PERSONNEL agency’s estimate of the burden of the request (ICR) with minor edits, MANAGEMENT proposed collection of information, Application for Death Benefits Under including the validity of the the Civil Service Retirement System Submission for Review: Evidence To methodology and assumptions used; (CSRS), SF 2800 and Documentation Prove Dependency of a Child, RI 25–37 3. Enhance the quality, utility, and and Elections in Support of Application clarity of the information to be for Death Benefits When Deceased Was AGENCY: Office of Personnel collected; and an Employee at the Time of Death Management. 4. Minimize the burden of the (CSRS), SF 2800A. ACTION: 30-Day notice and request for collection of information on those who DATES: Comments are encouraged and comments. are to respond, including through the will be accepted until July 30, 2021. use of appropriate automated, SUMMARY: Retirement Services, Office of electronic, mechanical, or other ADDRESSES: Interested persons are Personnel Management (OPM) offers the technological collection techniques or invited to submit written comments on general public and other federal other forms of information technology, the proposed information collection to agencies the opportunity to comment on e.g., permitting electronic submissions the Office of Information and Regulatory an expiring information collection of responses. Affairs, Office of Management and request (ICR) with minor edits, Evidence RI 25–37 is designed to collect Budget, 725 17th Street NW, to Prove Dependency of a Child, RI 25– sufficient information for the Office of Washington, DC 20503, Attention: Desk 37. Personnel Management to determine Officer for the Office of Personnel DATES: Comments are encouraged and Management or sent via electronic mail whether the surviving child of a _ will be accepted until July 30, 2021. deceased federal employee is eligible to to: oira [email protected] or ADDRESSES: Interested persons are receive benefits as a dependent child. faxed to (202) 395–6974. invited to submit written comments on FOR FURTHER INFORMATION CONTACT: A the proposed information collection to Analysis copy of this ICR with applicable the Office of Information and Regulatory Agency: Retirement Operations, supporting documentation, may be Affairs, Office of Management and Retirement Services, Office of Personnel obtained by contacting the Retirement Budget, 725 17th Street NW, Management. Services Publications Team, Office of Washington, DC 20503, Attention: Desk Title: Evidence To Prove Dependency Personnel Management, 1900 E Street Officer for the Office of Personnel of a Child. NW, Room 3316–L, Washington, DC Management or sent via electronic mail OMB Number: 3206–0206. 20415, Attention: Cyrus S. Benson, or to [email protected] or Frequency: On occasion. sent via electronic mail to faxed to (202) 395–6974. Affected Public: Individual or [email protected] or faxed to FOR FURTHER INFORMATION CONTACT: A Households. (202) 606–0910 or via telephone at (202) copy of this information collection, with Number of Respondents: 250. 606–4808.

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SUPPLEMENTARY INFORMATION: As Office of Personnel Management. the Commission shall either approve the required by the Paperwork Reduction Kellie Cosgrove Riley, proposed rule change, disapprove the Act of 1995 OPM is soliciting comments Director, Office of Privacy and Information proposed rule change, or institute for this collection. The information Management. proceedings to determine whether the collection (OMB No. 3206–0156) was [FR Doc. 2021–13897 Filed 6–29–21; 8:45 am] proposed rule change should be previously published in the Federal BILLING CODE 6325–38–P disapproved. The 45th day after Register on February 10, 2021 at 86 FR publication of the notice for the 8930, allowing for a 60-day public Proposed Rule Change is June 28, 2021. comment period. Two comments were SECURITIES AND EXCHANGE The Commission is extending the 45- received, but they had no relation to this COMMISSION day time period for Commission action information collection request. on the Proposed Rule Change. In order The Office of Management and Budget [Release No. 34–92250; File No. SR–NSCC– to provide the Commission with 2021–005] is particularly interested in comments sufficient time to consider the Proposed that: Self-Regulatory Organizations; Rule Change, the Commission finds that 1. Evaluate whether the proposed National Securities Clearing it is appropriate to designate a longer collection of information is necessary Corporation; Notice of Designation of period within which to take action on for the proper performance of functions Longer Period for Commission Action the Proposed Rule Change. Accordingly, pursuant to Section of the agency, including whether the on Proposed Rule Change To Increase 19(b)(2) of the Act 7 and for the reasons information will have practical utility; the National Securities Clearing stated above, the Commission 2. Evaluate the accuracy of the Corporation’s Minimum Required Fund designates August 12, 2021, as the date agency’s estimate of the burden of the Deposit proposed collection of information, by which the Commission shall either including the validity of the June 24, 2021. approve, disapprove, or institute proceedings to determine whether to methodology and assumptions used; I. Introduction 3. Enhance the quality, utility, and disapprove the Proposed Rule Change clarity of the information to be On April 26, 2021, National Securities (File No. SR–NSCC–2021–005). collected; and Clearing Corporation (‘‘NSCC’’) filed For the Commission, by the Division of with the Securities and Exchange 4. Minimize the burden of the Trading and Markets, pursuant to delegated Commission (‘‘Commission’’) proposed 8 collection of information on those who authority. rule change SR–NSCC–2021–005 (the are to respond, including through the J. Matthew DeLesDernier, ‘‘Proposed Rule Change’’) pursuant to use of appropriate automated, Assistant Secretary. Section 19(b)(1) of the Securities electronic, mechanical, or other [FR Doc. 2021–13913 Filed 6–29–21; 8:45 am] Exchange Act of 1934 (‘‘Act’’) 1 and Rule technological collection techniques or BILLING CODE 8011–01–P 19b–4 thereunder 2 to increase its other forms of information technology, minimum required fund deposit. The e.g., permitting electronic submissions Proposed Rule Change was published of responses. SECURITIES AND EXCHANGE for comment in the Federal Register on COMMISSION Standard Form 2800 is needed to May 14, 2021,3 and the Commission has collect information so that OPM can pay received one comment letter 4 on the [Investment Company Act Release No. death benefits to the survivors of changes proposed therein.5 34317; File No. 812–15194] Federal employees and annuitants. Section 19(b)(2) of the Act 6 provides Standard Form 2800A is needed for iCapital KKR Private Markets Fund, et that within 45 days of the publication of al. deaths in service so that survivors can notice of the filing of a proposed rule make the needed elections regarding change, or within such longer period up June 24, 2021. military service. to 90 days as the Commission may AGENCY: Securities and Exchange Analysis designate if it finds such longer period Commission (‘‘Commission’’). to be appropriate and publishes its ACTION: Notice. Agency: Retirement Operations, reasons for so finding or as to which the Retirement Services, Office of Personnel self-regulatory organization consents, Notice of application for an order Management. under sections 17(d) and 57(i) of the Title: Application for Death Benefits 1 15 U.S.C. 78s(b)(1). Investment Company Act of 1940 (the under the Civil Service Retirement 2 17 CFR 240.19b–4. ‘‘Act’’) and rule 17d–1 under the Act to System (SF 2800); and Documentation 3 Securities Exchange Act Release No. 91809 (May permit certain joint transactions and Elections in Support of Application 10, 2021), 86 FR 26588 (May 14, 2021) (File No. SR– otherwise prohibited by sections 17(d) for Death Benefits When Deceased Was NSCC–2021–005) (‘‘Notice of Filing’’). 4 See letter from Parsons, Behle & Latimer, and 57(a)(4) of the Act and rule 17d–1 an Employee at the Time of Death (SF Counsel for Alpine Securities Corporation under the Act. 2800A). (‘‘Alpine’’), dated June 4, 2021, to Vanessa SUMMARY OF APPLICATION: Applicants OMB Number: 3206–0156. Countryman, Secretary, Commission (‘‘Alpine Letter’’), available at https://www.sec.gov/ request an order to permit certain Frequency: On occasion. comments/sr-nscc-2021-005/srnscc2021005.htm. business development companies Affected Public: Individuals or 5 NSCC appended an Exhibit 2 to the materials (‘‘BDC’’) and closed-end management Households. filed on April 26, 2021. The appended Exhibit 2 investment companies to co-invest in Number of Respondents: SF 2800 = consists of a comment letter that NSCC received from one of its members objecting to NSCC’s portfolio companies with each other and 40,000; SF 2800A = 400. proposal in response to member outreach NSCC with affiliated investment funds. Estimated Time per Respondent: SF conducted in 2019. See Notice of Filing, supra note APPLICANTS: iCapital KKR Private 3106 = 45 minutes; SF 3106A = 45 4, at 26593. A copy of the comment letter is available at https://www.dtcc.com/-/media/Files/ Markets Fund (formerly known as minutes. Downloads/legal/rule-filings/2021/NSCC/SR-NSCC- Total Burden Hours: 30,300 hours (SF 2021-005.pdf. 7 Id. 2800 = 30,000; SF 2800A = 300). 6 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(31).

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Altegris KKR Commitments Master Holdings, L.P., StepStone Capital Opportunities Fund, L.P., StepStone Fund) (the ‘‘Company’’); iCapital Partners IV Europe Holdings SCSP, FSS Opportunities Fund, L.P., Registered Fund Adviser LLC (‘‘iCapital StepStone JP Opportunities Fund IA, StepStone H Opportunities Fund, L.P., RF Adviser’’); StepStone Group LP L.P., StepStone KF Private Equity Fund StepStone International Investors IV (‘‘StepStone Group’’); StepStone Group II, L.P., StepStone BVK Opportunities (Delaware), L.P., StepStone Real Estate LP, StepStone AMP (GP), Fund SCSP, StepStone Secondary International Investors IV (Guernsey), LLC, StepStone Atlantic (GP), L.P., Opportunities Fund IV Offshore L.P., StepStone JP Opportunities Fund StepStone Capital III (GP), LLC, Holdings, L.P., SIMA Private Equity 6 II, L.P., StepStone JP Opportunities StepStone European Fund GP S.a` r.l., GMBH & Co. KG, 2006 Co-Investment Fund, L.P., StepStone K Real Estate Co- StepStone Ferro (GP), LLC, StepStone K Portfolio, L.P., 2007 Co-Investment Investment Fund, L.P., StepStone K Opportunities (GP), LLC, StepStone Portfolio, L.P., 2008 Co-Investment Strategic Opportunities Fund II, L.P., Secondaries II (GP), LLC, StepStone Portfolio, L.P., Capitol Private StepStone K Strategic Opportunities Secondaries III (GP), S.a` r.l., StepStone Opportunities II (Parallel) LP, Capitol Fund III, L.P., StepStone K Strategic Secondaries III (GP), LLC, StepStone Private Opportunities II LP, Capital Opportunities Fund, L.P., StepStone KF UWF Secondaries (GP), L.P., StepStone Private Opportunities LP, CGR/PE, LLC, Private Equity Fund, L.P., StepStone KF (GP), LLC, StepStone NPS Siera Europe Enterprise II Offshore, L.P., Maple Opportunities Fund, L.P., (GP), LLC, StepStone NPS PE (GP), LLC, Europe Enterprise III Offshore, L.P., StepStone Masters V Cayman Holdings, StepStone Rivas (GP), LLC, StepStone Lexington C/RE, LLC, Masters IV L.P., StepStone Masters V LP, StepStone FSS (GP), LLC (collectively, with Cayman Holdings, L.P., Mezzanine Co- Mexico I Co-Investment Opportunities StepStone Group, the ‘‘Existing Investment Portfolio, L.P., NYSCRF Fund, L.P., StepStone Mexico I SPC, StepStone Affiliated Advisers’’); and Pioneer Opportunities Fund A, L.P., StepStone NL Opportunities Fund II, StepStone Pioneer Capital I, L.P., NYSCRF Pioneer Partnership Fund B, L.P., StepStone NL Opportunities Fund, StepStone Pioneer Capital Buyout Fund L.P., Silverstone I, LLC, Silverstone II, L.P., StepStone NPS PE Fund, L.P.— I, L.P., StepStone Mezzanine Partners I– LLC—Series A, Silverstone II, LLC— Tranche B, StepStone OH Secondary A L.P., StepStone Private Equity Series B, Silverstone II, LLC—Series C, Opportunities Fund, L.P., StepStone P Partners II L.P., StepStone Masters III Silverstone II, LLC—Series D, Opportunities Fund, L.P., StepStone L.P., StepStone Pioneer Capital Buyout Silverstone II, LLC—Series E, Phoenix Opportunities Fund, L.P., Fund II, L.P., StepStone Pioneer Capital Silverstone II, LLC—Series F, StepStone PIFSS Real Estate Co- II, L.P., T.F. Capital Investors II L.P., Silverstone II, LLC—Series G, Investment Fund, L.P., StepStone StepStone PA Tap Fund I, LP, Silverstone II, LLC—Series H, Pioneer Capital Europe II, L.P. StepStone-Syn Investments, L.L.L.P., Silverstone II, LLC—Series I, Silverstone Incorporated, StepStone Pioneer Capital StepStone Pioneer Opportunities Fund, II, LLC—Series J, Silverstone II, LLC— Europe Opportunities Fund I, L.P. L.P., StepStone Pioneer Opportunities Series K (Class 1), Silverstone II, LLC— Incorporated, StepStone Pioneer Capital Fund II, L.P., StepStone Private Equity Series K (Class 2), Silverstone III, L.P., Europe Opportunities Fund IB, L.P. Partners III L.P., Latin America StepStone A Opportunities Fund, L.P., Incorporated, StepStone PPL Secondary Opportunities (Delaware) L.P., StepStone Aegon Opportunities Fund, Opportunities Fund, L.P., StepStone StepStone Pioneer Capital III, L.P., LP.—Series A, StepStone Aegon Private Access Partnership, L.P., Europe Enterprise III Onshore L.P., Asia Opportunities Fund, LP.—Series B, StepStone Private Equity Partners III Enterprise II Onshore LLC, StepStone StepStone AMP Opportunities Fund, Cayman Holdings, L.P., StepStone Private Equity Partners L.P., StepStone L.P., StepStone AMP Opportunities Private Equity Partners Offshore II L.P., Masters IV L.P., StepStone Capital Fund, L.P.—Series A, StepStone StepStone Private Equity Portfolio L.P., Partners IV, L.P., StepStone XL Atlantic Fund, L.P.—Infrastructure StepStone Real Estate Partners III Opportunities Fund II–B, L.P., Terrace Series 1 2011, StepStone Atlantic Fund, Cayman, LP, StepStone Real Estate Investment Holdings SMF, LLC, L.P.—Private Equity Series 1 2009, Partners III I Opportunities Fund, L.P., Sunstone PE Opportunities Fund, LLC, StepStone Atlantic Fund, L.P.—Private StepStone Real Estate Partners III StepStone AP Opportunities Fund, L.P., Equity Series 2 2012, StepStone Atlantic Offshore, L.P., StepStone Real Estate Capitol Private Opportunities III LP, Fund, L.P.—Private Markets Series 1 Partners III TE, L.P., StepStone Real Capitol Private Opportunities III 2014, StepStone Atlas Opportunities Estate Partners III, L.P., StepStone Real (Parallel) LP, StepStone Secondary Fund II, L.P., StepStone Atlas Estate Partners IV Parallel, L.P., Opportunities Fund IV, L.P., StepStone Opportunities Fund LP, StepStone AZ StepStone Real Estate Partners IV, L.P., Private Equity Partners Offshore L.P., China and Asia Opportunities Fund, StepStone Rivas Private Equity Fund, Asia Enterprise II Offshore L.P., L.P., StepStone AZ Secondary L.P., StepStone Secondary StepStone Mezzanine Partners Opportunities Fund, L.P., StepStone Opportunities Fund II Offshore (Offshore) I–A L.P., StepStone Capital Partners II Cayman Holdings, Holdings, L.P., StepStone Secondary International Investors II–G, L.P., L.P., StepStone Capital Partners II Opportunities Fund II, L.P., StepStone StepStone International Investors II, Onshore, L.P., StepStone Capital Secondary Opportunities Fund III, L.P., L.P., StepStone Masters III Offshore L.P., Partners III Offshore Holdings, L.P., StepStone Secondary Opportunities MBKP North Asian Opportunities StepStone Capital Partners III, L.P., Fund, L.P., StepStone SEDCO European Partners Offshore L.P., T.F. Capital StepStone Capital Partners IV Offshore Opportunities Fund, L.P., StepStone Investors II Offshore L.P., StepStone Holdings, L.P., StepStone CC SEDCO U.S. Opportunities Fund, L.P., International Investors III, L.P., Latin Opportunities Fund, LLC, StepStone StepStone Tactical Growth Fund II, L.P., America Opportunities L.P., Europe CGC Opportunities I, L.P., StepStone StepStone Tactical Growth Fund Enterprise III Offshore L.P., StepStone Endurance L.P., StepStone European Offshore Holdings, L.P., StepStone NPS PE Fund, L.P., StepStone Fund SCS, SICAV–FIS—StepStone Tactical Growth Fund, L.P., StepStone Secondary Opportunities Fund III Capital Partners III Compartment, UWF Secondary Opportunities Fund, Offshore Holdings SCSP, Pegasus Multi- StepStone European Fund SCS, SICAV– L.P.—Series A, StepStone UWF Strategy Series (A) LP, StepStone FIS—StepStone Real Estate Partners III Secondary Opportunities Fund, L.P.— Tactical Growth Fund II Offshore Compartment, StepStone Ferro Series B, StepStone XL Opportunities

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Fund II–A, L.P., StepStone XL Debt Offshore SP, SC ACA Private Debt European Private Debt Fund, Co- Opportunities Fund, L.P., Terrace Offshore SP, Swiss Capital CAPITALA Investment European Private Debt Fund, Investment Holdings, LLC, StepStone R Private Debt Offshore SP, Swiss Capital Apera European Private Debt Fund, CVC Co-Investment Partnership, L.P., BTC Private Debt Offshore SP, Swiss CP SSG European Private Debt Fund, StepStone C Strategic Core Capital Co-Investments Private Debt TEREF LUX I, HCM European Private Infrastructure Partnership, L.P., Sunsira Offshore SP, Swiss Capital HYS Private Debt Fund, Bridgepoint European Infrastructure Fund, LLC, StepStone G Debt Offshore SP, Swiss Capital ASP Private Debt Fund, StepStone Trade Infrastructure Opportunities, L.P., Private Debt Offshore SP, SC ACM Finance ICAV, StepStone Trade Finance StepStone Scorpio Infrastructure Private Debt Offshore SP, Swiss Capital Fund, Swiss Capital Credit Strategies III Opportunities Fund, L.P., StepStone KF KA Private Debt Offshore SP, StepStone ICAV, PR Private Debt Fund, Swiss Infrastructure Fund II, L.P., StepStone K Private Debt Secondary Funds SPC, SC Capital Private Markets III, PR Private Infrastructure Opportunities Fund, L.P., DCM Secondary SP, Swiss Capital Debt Platform Fund, SSG Credit UK Canadian Hydro Holdco A Limited, Alternative Strategies Funds SPC, SC Strategies IV ICAV, SSG GEN Credit StepStone KF Infrastructure Fund, L.P., Alternative Strategy 1 SP, SC Fund I, SSG Credit Strategies V ICAV, StepStone NLGI Infrastructure Alternative Strategy 2 SP, SC and SSG GEN Credit Fund II Opportunities Fund, L.P., StepStone Alternative Strategy 3 SP, SC (collectively, the ‘‘Existing Affiliated NPS Infrastructure Fund, L.P., Real Alternative Strategy 4 SP, SC Investors’’). Estate International Partnership Fund I, Alternative Strategy 5 SP, SC FILING DATES: The application was filed L.P., SRE Curator-TS, LP, SRE Maple Alternative Strategy 6 SP, SC on January 22, 2020 and amended on Direct Investco, LP, SRE Maple REIT Alternative Strategy 7 SP, SC May 13, 2021. Investco, LP, Real Estate Domestic Alternative Strategy 8 SP, SC HEARING OR NOTIFICATION OF HEARING: An Partnership Fund I, L.P., Real Estate Alternative Strategy 9 SP, SC order granting the requested relief will Global Partnership Fund II, L.P., SRE Alternative Strategy 10 SP, SC be issued unless the Commission orders Care—Investco, L.P., SRE Colt Devco— Alternative Strategy 11 SP, SC a hearing. Interested persons may Investco, L.P., SRE Colt OPCO— Alternative Strategy 12 SP, SC request a hearing by emailing the Investco, L.P., SRE Curator—Investco, Alternative Strategy 13 SP, SC Commission’s Secretary at Secretarys- L.P., SRE Encore—Investco, L.P., SRE Alternative Strategy 14 SP, StepStone [email protected] and serving applicants Freyja—Investco, L.P., SRE Hasso— ADF Opportunities Fund L.P., SC with a copy of the request by email. Investco, L.P., SRE Magnesia—Investco, CWMAA Senior Corporate Lending L.P., Hearing requests should be received by L.P., SRE Panther—Investco, L.P., and Senior Corporate Lending Enhanced I the Commission by 5:30 p.m. on July 14, SRE Preservation—Investco, L.P., SRE Fund L.P., SCL XL I Fund L.P., SSG 2021, and should be accompanied by Ripple—Investco LP, SRE Stern Debt— NLGI Private Debt Funds SPC, SSG proof of service on the applicants, in the Investco, L.P., SRE Stern Equity— NLGI European Direct Lending SP, SSG form of an affidavit, or, for lawyers, a Investco, L.P., SREP III COLT OPCO ME Private Debt Fund LP, Swiss Capital certificate of service. Pursuant to rule 0– REIT, LLC, SREP III Flight—Investco, BG OL Private Debt Fund LP, Swiss 5 under the Act, hearing requests should L.P., Sunstone Real Estate, L.P., Bridge Capital Alternative Strategies Funds II state the nature of the writer’s interest, Village Limited, StepStone E SPC, SC Alternative Strategy A SP, any facts bearing upon the desirability Opportunities Fund, L.P., StepStone E StepStone Real Estate Partners IV of a hearing on the matter, the reason for Offshore Opportunities Fund, L.P., Europe SCS, StepStone Secondary the request, and the issues contested. StepStone M Opportunities Fund, L.P., Opportunities Fund IV Europe Holdings Persons who wish to be notified of a StepStone LMM Opportunities Fund I, SCSp, Swiss Capital PRO Loan V plc, hearing may request notification by L.P.—Series A, StepStone LMM Swiss Capital PRO Loan VII plc, Swiss emailing the Commission’s Secretary at Opportunities Fund I, L.P.—Series B, Capital Private Markets Funds, LG [email protected]. Multibrand SICAV–SIF—Valida Private Income Fund, SC LV Private Debt Fund, ADDRESSES: The Commission: Equity Fund, Heathrow Forest Asia Swiss Capital Private Markets II Funds, [email protected]. Applicants: Opportunities Fund, L.P., StepStone AGON Fund, Senior Corporate Lending Stephen Jacobs at sjacobs@ NPS PE Fund II, L.P., LCIV Fund I, EuroPrima Fund, CWPS Global icapitalnetwork.com and Richard Infrastructure Fund, StepStone B Infrastructure Fund, Senior Corporate Horowitz at richard.horowitz@ Infrastructure Opportunities Fund, L.P., Lending Europe Fund, Swiss Capital dechert.com. StepStone NPS Infrastructure Fund II, Credit Strategies ICAV, LG Direct FOR FURTHER INFORMATION CONTACT: Jill L.P., Swiss Capital FPT Private Debt Lending Platform Fund, SC LV Private Ehrlich, Senior Counsel, at (202) 551– Fund L.P., Swiss Capital GPIM Private Debt Platform Fund, Swiss Capital 6819 or Lisa Reid Ragen, Branch Chief, Debt Fund L.P., Swiss Capital HPS Credit Strategies II ICAV, 3SC PRIDE at (202) 551–6825 (Division of Private Debt Fund L.P., SC ACM Private Fund, SSG Valluga Fund, Swiss Capital Investment Management, Chief Debt Fund L.P., SC Co-Investments PRO Colours Funds plc, SC New Targets Counsel’s Office). Private Debt Fund L.P., SC NXT Capital Funds, SC Target D Fund, SC Target O SUPPLEMENTARY INFORMATION: The Private Debt Fund L.P., SC ACA Private Fund, Oceanic Global Investment Funds following is a summary of the Debt Fund L.P., Swiss Capital HYS plc, Pacific Ocean Fund, Swiss Capital application. The complete application Private Debt Fund L.P., Swiss Capital Non-Traditional Funds, Swiss Capital may be obtained via the Commission’s KKR Private Debt Fund L.P., Swiss PRO Non-Traditional Funds, Swiss website by searching for the file Capital Capitala Private Debt Fund L.P., Capital PRO Matrix Fund, Swiss Capital number, or for an applicant using the SC BTC Private Debt Fund L.P., Swiss PRO Disintermediation I Fund, Swiss Company name box, at http:// Capital KA Private Debt Fund L.P., Capital PRO Unicum Fund, Swiss www.sec.gov/search/search.htm or by Swiss Capital TLCP Private Debt Fund Capital PRO SST Fund, SC Private Debt calling (202) 551–8090. L.P., Swiss Capital DCM Private Debt Fund III L.P., Swiss Capital European Fund L.P., Swiss Capital PD (Offshore) Private Debt Funds I (SICAV) SCSp, Applicants’ Representations Funds SPC, SC FPT Private Debt ACM European Private Debt Fund, BLK 1. The Company was organized under Offshore SP, SC NXT Capital Private European Private Debt Fund, TKH Delaware law as a statutory trust for the

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purpose of operating as an externally- formed under Delaware law as a limited participated together with one or more managed, non-diversified, closed-end liability company on August 18, 2020, other Regulated Entities and/or one or management investment company. The and is registered with the Commission more Affiliated Investors in reliance on Company is a registered investment as an investment adviser under the the requested Order. ‘‘Potential Co- company under the Act. The Company’s Investment Advisers Act of 1940 (the Investment Transaction’’ means any Objectives and Strategies 1 are to seek ‘‘Advisers Act’’). investment opportunity in which a long-term capital appreciation and the 3. StepStone Group is a Delaware Regulated Entity (or its Wholly-Owned Company intends to allocate at least limited partnership and is registered Investment Subsidiary) could not 80% of its assets to private equity-type with the Commission as an investment participate together with one or more investments sponsored or advised by adviser under the Advisers Act. Affiliated Investors and/or one or more Kohlberg Kravis Roberts & Co. L.P. StepStone Group serves as the sub- other Regulated Entities without (‘‘Kohlberg Kravis Roberts’’) or an adviser to the Company. obtaining and relying on the Order.7 affiliate of Kohlberg Kravis Roberts 4. Each Existing Affiliated Investor is The term ‘‘Advisor’’ means any iCapital (collectively with its affiliates, ‘‘KKR’’), a privately-offered fund that would be Adviser or any StepStone Affiliated including primary offerings and an investment company but for section Adviser. secondary acquisitions of interests in 3(c)(1) or 3(c)(7) of the Act. An Existing 6. Applicants state that a Regulated alternative investment funds that pursue StepStone Affiliated Adviser serves as Entity may, from time to time, form a private equity strategies and co- the investment adviser to each Existing Wholly-Owned Investment Subsidiary.8 investment opportunities in operating Affiliated Investor. Each Existing Such a subsidiary would be prohibited companies presented by such KKR StepStone Affiliated Adviser either from investing in a Co-Investment investment funds. The Company may at directly or indirectly controls, is Transaction with any Affiliated Investor any time determine to allocate its assets controlled by, or is under common because it would be a company to investments not sponsored, issued by control with StepStone Group, and is controlled by its parent Regulated Entity or otherwise linked to, KKR, or its registered as an investment adviser for purposes of section 57(a)(4) and rule affiliates and to strategies and asset under the Advisers Act. 17d–1. Applicants request that each classes not representative of private 5. Applicants seek an order (‘‘Order’’) Wholly-Owned Investment Subsidiary equity. The Company has a five member to permit one or more Regulated be permitted to participate in Co- board of trustees (‘‘Board’’),2 which Entities 5 and/or one or more Affiliated Investment Transactions in lieu of its currently includes four persons who are Investors 6 to participate in the same parent Regulated Entity and that the not ‘‘interested persons’’ of the investment opportunities through a Wholly-Owned Investment Subsidiary’s Company within the meaning of section proposed co-investment program (the participation in any such transaction be 2(a)(19) of the Act. ‘‘Co-Investment Program’’) where such treated, for purposes of the requested 2. The Company and certain of its participation would otherwise be Order, as though the parent Regulated affiliates have previously participated in prohibited under sections 17(d) and Entity were participating directly. a co-investment program in connection 57(a)(4) and the rules under the Act. For Applicants represent that this treatment with an exemptive order issued by the purposes of the application, ‘‘Co- is justified because a Wholly-Owned Commission on October 17, 2016 (the Investment Transaction’’ means any Investment Subsidiary would have no ‘‘Prior Order’’) 3 granting substantially transaction in which a Regulated Entity purpose other than serving as a holding the same relief as is sought in the (or its Wholly-Owned Investment vehicle for the Regulated Entity’s application. On January 29, 2021, Subsidiary, as defined below) investments and, therefore, no conflicts iCapital RF Adviser became the of interest could arise between the investment adviser to the Company, at such terms and conditions were imposed directly which time none of the Applicants were on iCapital RF Adviser. When and if the Order is 7 All existing entities that currently intend to rely permitted to continue to rely on the granted by the Commission, the Applicants would upon the requested Order have been named as 4 then rely on the Order, with the result that no applicants. Any other existing or future entity that Prior Order. iCapital RF Adviser was person will continue to rely on the Prior Order. subsequently relies on the Order will comply with 5 ‘‘Regulated Entity’’ means the Company and any the terms and conditions of the application. 1 ‘‘Objectives and Strategies’’ means a Regulated Future Regulated Entity. ‘‘Future Regulated Entity’’ 8 The term ‘‘Wholly-Owned Investment Entity’s (as defined below) investment objectives means a closed-end management investment Subsidiary’’ means an entity (i) that is wholly- and strategies, as described in the Regulated company (a) that is registered under the Act or has owned by a Regulated Entity (with such Regulated Entity’s registration statement on Form N–2, other elected to be regulated as a BDC, (b) whose Entity at all times holding, beneficially and of filings the Regulated Entity has made with the investment adviser is an iCapital Advisor and (c) record, 100% of the voting and economic interests); Commission under the Securities Act of 1933 (the whose investment sub-adviser is a StepStone (ii) whose sole business purpose is to hold one or ‘‘Securities Act’’), or under the Securities Exchange Affiliated Adviser. ‘‘iCapital Adviser’’ means more investments on behalf of the Regulated Entity Act of 1934, and the Regulated Entity’s reports to iCapital RF Adviser, or any future investment (and, in the case of an entity that is licensed by the shareholders. adviser that (i) controls, is controlled by or is under Small Business Administration to operate under the 2 The term ‘‘Board’’ refers to the board of trustees common control with iCapital RF Adviser, (ii) is Small Business Investment Act of 1958, as amended of the Company and the board of directors or registered as an investment adviser under the (the ‘‘SBA Act’’), as a small business investment trustees of any other Regulated Entity, as the Advisers Act, and (iii) is not a Regulated Entity or company (an ‘‘SBIC’’), to maintain a license under context may require. a subsidiary of a Regulated Entity. ‘‘StepStone the SBA Act and issue debentures guaranteed by 3 Altegris KKR Commitments Master Fund, et al., Affiliated Adviser’’ means any Existing StepStone the Small Business Administration); (iii) with Investment Company Act Release No. 32265 Affiliated Adviser or any future investment adviser respect to which the Regulated Entity’s Board has (September 19, 2016) (notice) and 32319 (October that (i) controls, is controlled by or is under the sole authority to make all determinations with 17, 2016) (order). common control with StepStone Group, (ii) is respect to the entity’s participation under the 4 In reliance on the Commission staff no-action registered as an investment adviser under the conditions of the application; and (iv) that would letter issued to Innovator Capital Management, LLC, Advisers Act, and (iii) is not a Regulated Entity or be an investment company but for section 3(c)(1) or et al. (pub. avail. October 6, 2017) and oral a subsidiary of a Regulated Entity. 3(c)(7) of the Act. All subsidiaries participating in discussions with the Commission staff, the 6 ‘‘Affiliated Investors’’ means the Existing the Co-Investment Program will be Wholly-Owned Applicants intend to rely on the Prior Order as if Affiliated Investors and any Future Affiliated Investment Subsidiaries and will have Objectives the Prior Order extended to iCapital RF Adviser Investor. ‘‘Future Affiliated Investor’’ means an and Strategies that are either substantially the same until the earlier of the receipt of the Order or 150 entity (a) whose investment adviser is a StepStone as, or a subset of, their parent Regulated Entity’s days from January 29, 2021. During such time, Affiliated Adviser, (b) that would be an investment Objectives and Strategies. A subsidiary that is an iCapital RF Adviser will comply with the terms and company but for section 3(c)(1) or 3(c)(7) of the Act SBIC may be a Wholly-Owned Investment conditions in the Prior Order imposed on the and (c) that intends to participate in the Co- Subsidiary if it satisfies the conditions in this Company’s previous investment adviser as though Investment Program. definition.

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Regulated Entity and the Wholly-Owned Entity by a StepStone Affiliated Advisors will present the investment Investment Subsidiary. The Regulated Adviser. opportunity to the Eligible Trustees 10 of Entity’s Board would make all relevant 9. Applicants state that StepStone the Regulated Entity prior to the actual determinations under the conditions Group has an investment committee investment by the Regulated Entity. As with regard to a Wholly-Owned through which it will carry out its to any Regulated Entity, a Co- Investment Subsidiary’s participation in obligation under condition 1 to make a Investment Transaction will be a Co-Investment Transaction, and the determination as to the appropriateness consummated only upon approval by a Regulated Entity’s Board would be of a Potential Co-Investment required majority of the Eligible informed of, and take into Transaction for each Regulated Entity. Trustees of such Regulated Entity consideration, any proposed use of a Applicants represent that each within the meaning of section 57(o) of 11 Wholly-Owned Investment Subsidiary StepStone Affiliated Adviser has the Act (‘‘Required Majority’’). in the Regulated Entity’s place. If the developed a robust allocation process as 12. With respect to the pro rata Regulated Entity proposes to participate part of its overall compliance policies dispositions and follow-on investments and procedures. Applicants state that, in provided in conditions 7 and 8, a in the same Co-Investment Transaction the case of a Potential Co-Investment Regulated Entity may participate in a with any of its Wholly-Owned Transaction, the applicable StepStone pro rata disposition or follow-on Investment Subsidiaries, the Board will Affiliated Adviser would apply its investment without obtaining prior also be informed of, and take into allocation policies and procedures in approval of the Required Majority if, consideration, the relative participation determining the proposed allocation for among other things: (i) The proposed of the Regulated Entity and the Wholly- the Regulated Entity consistent with the participation of each Regulated Entity Owned Investment Subsidiary. requirements of condition 2(a). and Affiliated Investor in such 7. It is anticipated that the StepStone 10. Applicants state that, once the disposition is proportionate to its Affiliated Advisers will periodically applicable StepStone Affiliated Adviser outstanding investments in the issuer determine that certain investments a determined a proposed allocation for a immediately preceding the disposition StepStone Affiliated Adviser Regulated Entity, such StepStone or follow-on investment, as the case recommends for a Regulated Entity Affiliated Adviser would notify the may be; and (ii) each Regulated Entity’s would also be appropriate investments applicable iCapital Adviser of the Board has approved that Regulated for one or more other Regulated Entities Potential Co-Investment Transaction Entity’s participation in pro rata and/or one or more Affiliated Investors and the StepStone Affiliated Adviser’s dispositions and follow-on investments as Potential Co-Investment recommended allocation for such as being in the best interests of the Transactions. Such a determination may Regulated Entity. Applicants further Regulated Entity. If the Board does not result in the Regulated Entity, one or state that the applicable iCapital so approve, any such disposition or more other Regulated Entities and/or Adviser would review the StepStone follow-on investment will be submitted one or more Affiliated Investors co- Affiliated Adviser’s recommendation for to the Regulated Entity’s Eligible investing in certain investment the Regulated Entity and would have Trustees. The Board of any Regulated opportunities. For each such investment the ability to ask questions of the Entity may at any time rescind, suspend opportunity, the Advisors to each StepStone Affiliated Adviser and or qualify its approval of pro rata Regulated Entity will independently request additional information from the dispositions and follow-on investments StepStone Affiliated Adviser. analyze and evaluate the investment with the result that all dispositions and/ Applicants further submit that if the opportunity as to its appropriateness for or follow-on investments must be applicable iCapital Adviser approved such Regulated Entity taking into submitted to the Eligible Trustees. the investment for the Regulated Entity, 12 consideration the Regulated Entity’s 13. No Independent Trustee of a the investment and all relevant Objectives and Strategies. Regulated Entity will have a financial allocation information would then be interest in any Co-Investment 8. Applicants state that iCapital RF presented to the Regulated Entity’s Transaction. Adviser serves as the Company’s Board for its approval in accordance 14. Applicants state that if an Adviser, investment adviser and either it or with the conditions to the application. its principals, or any person controlling, another iCapital Adviser will serve in Applicants state that they believe the controlled by, or under common control the same capacity to any Future investment process that will unfold with the Adviser or its principals, and Regulated Entity, and that StepStone between the StepStone Affiliated any Affiliated Investors (collectively, Group serves as the Company’s sub- Adviser and iCapital Advisers, prior to the ‘‘Holders’’) own in the aggregate adviser and either it or another seeking approval from the Regulated more than 25 percent of the outstanding StepStone Affiliated Adviser will serve Entity’s Board (which is in addition to, voting shares of a Regulated Entity, then in the same capacity to any Future rather than in lieu of, the procedures Regulated Entity. Applicants represent required under the conditions of the 10 ‘‘Eligible Trustees’’ means the trustees or that although a StepStone Affiliated application), is significant and provides directors of a Regulated Entity that are eligible to Adviser will identify and recommend for additional procedures and processes vote under section 57(o) of the Act. 11 In the case of a Regulated Entity that is a 9 to ensure that the Regulated Entity is investments for each Regulated Entity, registered closed-end fund, the trustees or directors prior to any investment by the being treated fairly in respect of that make up the Required Majority will be Regulated Entity, the StepStone Potential Co-Investment Transactions. determined as if the Regulated Entity were a BDC Affiliated Advisers will present each 11. If the Advisors to a Regulated subject to section 57(o). As defined in section 57(o), Entity determine that a Potential Co- ‘‘required majority’’ means ‘‘both a majority of a proposed investment to the relevant business development company’s directors or iCapital Adviser which has the Investment Transaction is appropriate general partners who have no financial interest in authority to approve or reject all for the Regulated Entity (and the such transaction, plan, or arrangement and a investments proposed for the Regulated applicable iCapital Adviser approves majority of such directors or general partners who the investment for such Regulated are not interested persons of such company.’’ 12 The term ‘‘Independent Trustees’’ refers to the 9 Applicants represent that the iCapital Advisers Entity), and one or more other Regulated trustees or directors of any Regulated Entity that are will not source any Potential Co-Investment Entities and/or one or more Affiliated not ‘‘interested persons’’ of the Regulated Entity Transactions under the requested Order. Investors may also participate, the within the meaning of section 2(a)(19) of the Act.

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the Holders will vote such shares as section 2(a)(3)(C) of the Act. Section the appropriateness of the investment required under Condition 15. 17(d) and section 57(b) apply to any for the Regulated Entity in light of the investment adviser to a closed-end fund Regulated Entity’s then-current Applicants’ Legal Analysis or a BDC, respectively, including the circumstances. 1. Section 17(d) of the Act and rule sub-adviser. Thus, a StepStone 2. a. If the Advisors to a Regulated 17d–1 under the Act prohibit Affiliated Adviser and any Affiliated Entity deem participation in any participation by a registered investment Investors that it advises could be Potential Co-Investment Transaction to company and an affiliated person in any deemed to be persons related to be appropriate for the Regulated Entity, ‘‘joint enterprise or other joint Regulated Entities in a manner the Advisors will then determine an arrangement or profit-sharing plan,’’ as described by sections 17(d) and 57(b) appropriate level of investment for such defined in the rule, without prior and therefore prohibited by sections Regulated Entity. approval by the Commission by order 17(d) and 57(a)(4) and rule 17d–1 from b. If the aggregate amount upon application. Section 17(d) of the participating in the Co-Investment recommended by the Advisors to a Act and rule 17d–1 under the Act are Program. Applicants further submit that, Regulated Entity to be invested by the applicable to Regulated Entities that are because the StepStone Affiliated Regulated Entity in the Potential Co- registered closed-end investment Advisers are ‘‘affiliated persons’’ of Investment Transaction, together with companies. Similarly, with regard to other StepStone Affiliated Advisers, the amount proposed to be invested by BDCs, section 57(a)(4) of the Act makes Affiliated Investors advised by any of the other participating Regulated it unlawful for any person who is them could be deemed to be persons Entities and Affiliated Investors, related to a BDC in a manner described related to Regulated Entities (or a collectively, in the same transaction, in section 57(b), acting as principal, company controlled by a Regulated exceeds the amount of the investment knowingly to effect any transaction in Entity) in a manner described by opportunity, the investment opportunity which the BDC (or a company sections 17(d) and 57(b) and also will be allocated among the Regulated controlled by such BDC) is a joint or a prohibited from participating in the Co- Entities and such Affiliated Investors, joint and several participant with that Investment Program. pro rata based on each participant’s person in contravention of rules as 4. Applicants state that they expect Available Capital 13 for investment in prescribed by the Commission. Because that that co-investment in portfolio the asset class being allocated, up to the the Commission has not adopted any investments by a Regulated Entity, one amount proposed to be invested by rules expressly under section 57(a)(4), or more other Regulated Entities and/or each. The Advisors to each participating section 57(i) provides that the rules one or more Affiliated Investors will Regulated Entity will provide the under section 17(d) applicable to increase favorable investment Eligible Trustees of each participating registered closed-end investment opportunities for each Regulated Entity. Regulated Entity with information companies (e.g., rule 17d–1) are, in the 5. Applicants submit that the fact that concerning each participating party’s interim, deemed to apply to transactions the Required Majority will approve each Available Capital to assist the Eligible subject to section 57(a). Rule 17d–1, as Co-Investment Transaction before Trustees with their review of the made applicable to BDCs by section investment (except for certain Regulated Entity’s investments for 57(i), prohibits any person who is dispositions or follow-on investments, compliance with these allocation related to a BDC in a manner described as described in the conditions), and procedures. in section 57(b), as modified by rule other protective conditions set forth in c. After making the determinations 57b–1, from acting as principal, from the application, will ensure that each required in conditions 1 and 2(a) above, participating in, or effecting any Regulated Entity will be treated fairly. the Advisors to the Regulated Entity transaction in connection with, any Applicants state that each Regulated will distribute written information joint enterprise or other joint Entity’s participation in the Co- concerning the Potential Co-Investment arrangement or profit-sharing plan in Investment Transactions will be Transaction, including the amount which the BDC (or a company consistent with the provisions, policies proposed to be invested by each controlled by such BDC) is a participant, and purposes of the Act and on a basis Regulated Entity and any Affiliated unless an application regarding the joint that is not different from or less Investor, to the Eligible Trustees of each enterprise, arrangement, or profit- advantageous than that of other participating Regulated Entity for their sharing plan has been filed with the participants. Applicants further state consideration. A Regulated Entity will Commission and has been granted by an that the terms and conditions proposed co-invest with one or more other order entered prior to the submission of herein will ensure that all such Regulated Entities and/or an Affiliated the plan or any modification thereof, to transactions are reasonable and fair to Investor only if, prior to the Regulated security holders for approval, or prior to each Regulated Entity and the Affiliated Entities’ and the Affiliated Investors’ its adoption or modification if not so Investors and do not involve participation in the Potential Co- submitted. overreaching by any person concerned, 2. In passing upon applications under including iCapital Advisers or the 13 ‘‘Available Capital’’ means (a) for each rule 17d–1, the Commission considers StepStone Affiliated Advisers. Regulated Entity, the amount of capital available for whether the company’s participation in investment determined based on the amount of cash Applicants’ Conditions on hand, existing commitments and reserves, if any, the joint transaction is consistent with the targeted leverage level, targeted asset mix and the provisions, policies, and purposes of Applicants agree that the Order will other investment policies and restrictions set from the Act and the extent to which such be subject to the following conditions: time to time by the Board of the applicable participation is on a basis different from 1. Each time a StepStone Affiliated Regulated Entity or imposed by applicable laws, rules, regulations or interpretations and (b) for each or less advantageous than that of other Adviser considers a Potential Co- Affiliated Investor, the amount of capital available participants. Investment Transaction for an Affiliated for investment determined based on the amount of 3. Applicants state that the Regulated Investor or another Regulated Entity that cash on hand, existing commitments and reserves, Entities, by virtue of each having an falls within a Regulated Entity’s then- if any, the targeted leverage level, targeted asset mix and other investment policies and restrictions set iCapital Adviser, may be deemed to be current Objectives and Strategies, the by the Affiliated Investor’s directors, general under common control, and thus Advisors to the Regulated Entity will partners or adviser or imposed by applicable laws, affiliated persons of each other under make an independent determination of rules, regulations or interpretations.

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Investment Transaction, a Required Advisors, any other Regulated Entity or will not be interpreted so as to violate Majority concludes that: the Affiliated Investors or any affiliated this condition 6, if conditions (i) The terms of the Potential Co- person of any of them (other than the 2(c)(iii)(A), (B) and (C) are met. Investment Transaction, including the parties to the Co-Investment 7.a. If any Regulated Entity or consideration to be paid, are reasonable Transaction), except (A) to the extent Affiliated Investor elects to sell, and fair to the Regulated Entity and its permitted by condition 13, (B) to the exchange or otherwise dispose of an shareholders and do not involve extent permitted by section 17(e) and interest in a security that was acquired overreaching in respect of the Regulated section 57(k) of the Act, as applicable, by one or more Regulated Entities and/ Entity or its shareholders on the part of (C) in the case of fees or other or Affiliated Investors in a Co- any person concerned; compensation described in condition Investment Transaction, the Advisors (ii) the Potential Co-Investment 2(c)(iii)(C), or (D) indirectly, as a result will: Transaction is consistent with: of an interest in the securities issued by (i) Notify each Regulated Entity that (A) the interests of the Regulated one of the parties to the Co-Investment participated in the Co-Investment Entity’s shareholders; and Transaction. Transaction of the proposed disposition (B) the Regulated Entity’s then-current 3. Each Regulated Entity has the right at the earliest practical time; and Objectives and Strategies; to decline to participate in any Potential (ii) formulate a recommendation as to (iii) the investment by any other Co-Investment Transaction or to invest participation by each Regulated Entity Regulated Entity or an Affiliated less than the amount proposed. in the disposition. Investor would not disadvantage the 4. The Advisors will present to the b. Each Regulated Entity will have the Regulated Entity, and participation by Board of each Regulated Entity, on a right to participate in such disposition the Regulated Entity would not be on a quarterly basis, a record of all on a proportionate basis, at the same basis different from or less advantageous investments in Potential Co-Investment price and on the same terms and than that of any other Regulated Entity Transactions made by any of the other conditions as those applicable to the or Affiliated Investor; provided, that if Regulated Entities or any of the Affiliated Investors and any other any other Regulated Entity or any Affiliated Investors during the Regulated Entity. c. A Regulated Entity may participate Affiliated Investor, but not the preceding quarter that fell within the in such disposition without obtaining Regulated Entity itself, gains the right to Regulated Entity’s then-current prior approval of the Required Majority nominate a director for election to a Objectives and Strategies that were not if: (i) The proposed participation of each portfolio company’s board of directors made available to the Regulated Entity, Regulated Entity and each Affiliated or the right to have a board observer, or and an explanation of why the Investor in such disposition is any similar right to participate in the investment opportunities were not proportionate to its outstanding governance or management of the offered to the Regulated Entity. All investments in the issuer immediately portfolio company, such event shall not information presented to the Board preceding the disposition; (ii) the be interpreted to prohibit the Required pursuant to this condition will be kept Regulated Entity’s Board has approved Majority from reaching the conclusions for the life of the Regulated Entity and as being in the best interests of the required by this condition 2(c)(iii), if: at least two years thereafter, and will be (A) The Eligible Trustees will have Regulated Entity the ability to subject to examination by the the right to ratify the selection of such participate in such dispositions on a pro Commission and its staff. director or board observer, if any; and 5. Except for follow-on investments rata basis (as described in greater detail (B) the Advisors to the Regulated made in accordance with condition 8,14 in the application); and (iii) the Entity agree to, and do, provide periodic a Regulated Entity will not invest in Regulated Entity’s Board is provided on reports to the Regulated Entity’s Board reliance on the Order in any issuer in a quarterly basis with a list of all with respect to the actions of such which another Regulated Entity or an dispositions made in accordance with director or the information received by Affiliated Investor or any affiliated this condition. In all other cases, the such board observer or obtained through person of another Regulated Entity or an Advisors will provide their written the exercise of any similar right to Affiliated Investor is an existing recommendation as to the Regulated participate in the governance or investor. Entity’s participation to the Eligible management of the portfolio company; 6. A Regulated Entity will not Trustees, and the Regulated Entity will and participate in such disposition solely to (C) any fees or other compensation participate in any Potential Co- Investment Transaction unless the the extent that a Required Majority that any other Regulated Entity or any determines that it is in the Regulated Affiliated Investor or any affiliated terms, conditions, price, class of securities to be purchased, settlement Entity’s best interests. person of any other Regulated Entity or d. Each Regulated Entity and each date, and registration rights will be the an Affiliated Investor receives in Affiliated Investor will bear its own same for each participating Regulated connection with the right of one or more expenses in connection with the Entity and Affiliated Investor. The grant Regulated Entities or Affiliated Investors disposition. to nominate a director or appoint a to one or more Regulated Entities or 8.a. If any Regulated Entity or board observer or otherwise to Affiliated Investors, but not the Affiliated Investor desires to make a participate in the governance or Regulated Entity itself, of the right to ‘‘follow-on investment’’ (i.e., an management of the portfolio company nominate a director for election to a additional investment in the same will be shared proportionately among portfolio company’s board of directors, entity, including through the exercise of the participating Affiliated Investors the right to have an observer on the warrants, conversion privileges or other (who may each, in turn, share its board of directors or similar rights to rights to purchase securities of the portion with its affiliated persons) and participate in the governance or issuer) in a portfolio company whose any participating Regulated Entity in management of the portfolio company securities were acquired in a Co- accordance with the amount of each Investment Transaction, the Advisors 14 This exception applies only to follow-on party’s investment; and investments by a Regulated Entity in issuers in will: (iv) the proposed investment by the which that Regulated Entity already holds (i) Notify each Regulated Entity that Regulated Entity will not benefit the investments. participated in the Co-Investment

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Transaction of the proposed transaction participate in, so that the Independent Affiliated Investors based on the amount at the earliest practical time; and Trustees may determine whether all they invest in the Co-Investment (ii) formulate a recommendation as to investments made during the preceding Transaction. None of the other the proposed participation, including quarter, including those investments Regulated Entities, Affiliated Investors, the amount of the proposed follow-on which the Regulated Entity considered the Advisors nor any affiliated person of investment, by each Regulated Entity. but declined to participate in, comply the Regulated Entities or the Affiliated b. A Regulated Entity may participate with the conditions of the Order. In Investors will receive additional in such follow-on investment without addition, the Independent Trustees will compensation or remuneration of any obtaining prior approval of the Required consider at least annually the continued kind as a result of or in connection with Majority if: (i) The proposed appropriateness for such Regulated a Co-Investment Transaction (other than participation of each Regulated Entity Entity of participating in new and (a) in the case of the Regulated Entities and each Affiliated Investor in such existing Co-Investment Transactions. and the Affiliated Investors, the pro rata investment is proportionate to its 10. Each Regulated Entity will outstanding investments in the issuer transaction fees described above and maintain the records required by section fees or other compensation described in immediately preceding the follow-on 57(f)(3) of the Act as if each of the condition 2(c)(iii)(C) and (b) in the case investment; and (ii) the Regulated Regulated Entities were a BDC and each of the Advisors, investment advisory Entity’s Board has approved as being in of the investments permitted under fees paid in accordance with the the best interests of such Regulated these conditions were approved by the Regulated Entities’ and the Affiliated Entity the ability to participate in Required Majority under section 57(f) of follow-on investments on a pro rata the Act. Investors’ investment advisory basis (as described in greater detail in 11. No Independent Trustee of a agreements). the application). In all other cases, the Regulated Entity will also be a trustee, 14. The Advisors to the Regulated Advisors will provide their written director, general partner, managing Entities and Affiliated Investors will recommendation as to such Regulated member or principal, or otherwise an maintain written policies and Entity’s participation to the Eligible ‘‘affiliated person’’ (as defined in the procedures reasonably designed to Trustees, and the Regulated Entity will Act) of any Affiliated Investor. ensure compliance with the foregoing participate in such follow-on 12. The expenses, if any, associated conditions. These policies and investment solely to the extent that the with acquiring, holding or disposing of procedures will require, among other Required Majority determines that it is any securities acquired in a Co- things, that each of the Advisors to each in such Regulated Entity’s best interests. Investment Transaction (including, Regulated Entity will be notified of all c. If, with respect to any follow-on without limitation, the expenses of the Potential Co-Investment Transactions investment: distribution of any such securities (i) The amount of the opportunity that fall within a Regulated Entity’s registered for sale under the Securities then-current Objectives and Strategies proposed to be made available to any Act) shall, to the extent not payable by Regulated Entity is not based on the and will be given sufficient information the Advisors under their respective to make its independent determination Regulated Entities’ and the Affiliated advisory agreements with the Regulated Investors’ outstanding investments and recommendations under conditions Entities and the Affiliated Investors, be 1, 2(a), 7 and 8. immediately preceding the follow-on shared by the Regulated Entities and the investment; and Affiliated Investors in proportion to the 15. If the Holders own in the aggregate (ii) the aggregate amount relative amounts of the securities held more than 25 percent of the shares of a recommended by the Advisors to be or to be acquired or disposed of, as the Regulated Entity, then the Holders will invested by the Regulated Entity in the case may be. vote such shares in the same follow-on investment, together with the 13. Any transaction fee (including percentages as the Regulated Entity’s amount proposed to be invested by the break-up or commitment fees but other shareholders (not including the other participating Regulated Entities excluding brokers’ fees contemplated by Holders) when voting on (1) the election and the Affiliated Investors in the same section 17(e) or section 57(k) of the Act, of directors or trustees; (2) the removal transaction, exceeds the amount of the as applicable) 15 received in connection of one or more directors or trustees; or opportunity; then the Follow-On with a Co-Investment Transaction will (3) any other matter under either the Act Investment opportunity will be be distributed to the participating or applicable State law affecting the allocated among them pro rata based on Regulated Entities and Affiliated Board’s composition, size or manner of each participant’s Available Capital for Investors on a pro rata basis based on election. investment in the asset class being the amount they invested or committed, allocated, up to the amount proposed to 16. Each Regulated Entity’s chief as the case may be, in such Co- be invested by each. compliance officer, as defined in Rule d. The acquisition of follow-on Investment Transaction. If any 38a–1(a)(4), will prepare an annual investments as permitted by this transaction fee is to be held by an report for its Board that evaluates (and condition will be considered a Co- Advisor pending consummation of the documents the basis of that evaluation) Investment Transaction for all purposes transaction, the fee will be deposited the Regulated Entity’s compliance with and be subject to the other conditions into an account maintained by the the terms and conditions of the set forth in the application. Advisor at a bank or banks having the application and the procedures 9. The Independent Trustees of each qualifications prescribed in section established to achieve such compliance. 26(a)(1) of the Act, and the account will Regulated Entity will be provided For the Commission, by the Division of quarterly for review all information earn a competitive rate of interest that will also be divided pro rata among the Investment Management, under delegated concerning Potential Co-Investment authority. Transactions and Co-Investment participating Regulated Entities and Transactions, including investments J. Matthew DeLesDernier, 15 Applicants are not requesting and the Assistant Secretary. made by other Regulated Entities or Commission is not providing any relief for [FR Doc. 2021–13910 Filed 6–29–21; 8:45 am] Affiliated Investors that a Regulated transaction fees received in connection with any Entity considered but declined to Co-Investment Transaction. BILLING CODE 8011–01–P

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SECURITIES AND EXCHANGE Commission received no comments on following the resumption of trading COMMISSION the proposed rule changes. This order after a trading halt, suspension, or pause approves the proposed rule changes, as during each of the Exchanges’ extra- [Release No. 34–92257; File Nos. SR– CboeBYX–2021–012, SR–CboeBZX–2021– modified by Amendments No. 1. hours sessions will occur at the midpoint of the: (i) First NBBO 035, SRCboeEDGA–2021–011, SR– II. Description of the Proposed Rule subsequent to the first reported trade CboeEDGX–2021–025] Changes, as Modified by Amendments and first two-sided quotation on the No. 1 Self-Regulatory Organizations; Cboe listing exchange following the BYX Exchange, Inc.; Cboe BZX The Exchanges have proposed to resumption of trading after a halt, Exchange, Inc.; Cboe EDGA Exchange, harmonize the manner by which they suspension, or pause; or (ii) NBBO Inc.; Cboe EDGX Exchange, Inc.; Order re-open trading in a security listed on when the first two-sided quotation is Granting Approval of Proposed Rule other national securities exchanges if published by the listing exchange Changes, as Modified by Amendments the trading halt, suspension or pause in following the resumption of trading No. 1, Relating to the Exchanges’ that security is lifted during one of the after a halt, suspension, or pause if no Process for Re-Opening Securities Exchanges’ extra-hours sessions.5 The first trade is reported by the listing Listed on Other National Securities Exchanges’ respective processes for the exchange within one second of Exchanges Following the Resumption re-opening of trading in securities listed publication of the first two-sided of Trading After a Halt, Suspension, or on other national security exchanges quotation by the listing exchange. Pause Outside of Regular Trading under such circumstances vary The Exchanges have proposed to Hours depending on whether the securities are harmonize the different processes for re- listed on the New York Stock Exchange opening Tape A, and Tape B and C June 24, 2021. LLC (‘‘NYSE’’) (‘‘Tape A’’), or are listed securities during the extra-hours I. Introduction on exchanges other than NYSE (‘‘Tape sessions by: (1) Amending the B’’ and ‘‘Tape C’’).6 Specifically, Tape A Exchanges’ automated re-opening On April 26, 2021, Cboe BYX securities that resume trading after a processes for Tape A securities to Exchange, Inc. (‘‘CboeBYX’’), Cboe BZX halt, suspension, or pause during an provide for the execution of orders at Exchange, Inc. (‘‘CboeBZX’’), Cboe extra-hours trading session will be the midpoint of the NBBO; and (2) EDGA Exchange, Inc. (‘‘CboeEDGA’’) automatically re-opened pursuant each eliminating unnecessary differences and Cboe EDGX Exchange, Inc. of the Exchanges’ contingent opening between the process utilized for Tape A (‘‘CboeEDGX,’’ and collectively, the procedures, as described in each of the securities and the process used for Tape ‘‘Exchanges’’) filed with the Securities Exchanges’ rules,7 after one second has B and C securities. Thus, as proposed, and Exchange Commission passed following an Exchange’s receipt each of the Exchanges’ relevant rules 10 (‘‘Commission’’), pursuant to Section of the first NBBO following such would provide that during extra-hours 19(b)(1) of the Securities Exchange Act resumption of trading.8 As a result, 1 sessions, the re-opening process for of 1934 (‘‘Act’’) and Rule 19b–4 when the Exchanges re-open Tape A Tape A securities will occur at the 2 thereunder, proposed rule changes to securities during their respective extra- midpoint of the NBBO after one second amend each Exchange’s process for re- hours sessions today, orders are handled has passed following the Exchange’s opening trading of securities listed on in time sequence and placed on each receipt of the first NBBO following the other national securities exchanges Exchange’s book, routed, cancelled, or resumption of trading after a halt, outside of regular trading hours. The executed in accordance with the terms suspension, or pause. In addition, the proposed rule changes were published of the order. Exchanges propose to amend their for comment in the Federal Register on With respect to Tape B and C respective processes for re-opening Tape 3 May 14, 2021. On June 21, 2021, the securities, the Exchanges’ rules 9 B and C securities to mirror their Exchanges each filed an Amendment provide that the re-opening process proposed processes for Tape A No. 1 to their respective proposed rule securities, except that the Exchanges 4 changes (‘‘Amendments No. 1’’). The Amendments No. 1 are not subject to notice and would require the primary listing comment. The Amendments No. 1 are available on market to have begun quoting a security 1 the Commission’s website at: https://www.sec.gov/ 15 U.S.C. 78s(b)(1). before it initiates its own re-opening 2 17 CFR 240.19b–4. comments/sr-cboebyx-2021-012/srcboebyx2021012- 8931890-245403.pdf; https://www.sec.gov/ 3 See Securities Exchange Act Release Nos. 91804 process. As amended, each of the comments/sr-cboebzx-2021-035/srcboebzx2021035- 11 (May 10, 2021), 86 FR 26583 (May 14, 2021) (SR– Exchanges’ rules would provide that, 8931888-245385.pdf; https://www.sec.gov/ CboeBYX–2021–012); 91801 (May 10, 2021), 86 FR comments/sr-cboeedga-2021-011/ during extra-hours trading sessions, the 26594 (May 14, 2021) (SR–CboeBZX–2021–035); srcboeedga2021011-8931893-245388.pdf; and re-opening process for Tape B and C 91802 (May 10, 2021), 86 FR 26574 (May 14, 2021) https://www.sec.gov/comments/sr-cboeedgx-2021- (SR–CboeEDGA–2021–011) (‘‘CboeEDGA Notice’’); securities will occur at the midpoint of 025/srcboeedgx2021025-8931886-245402.pdf. 91803 (May 10, 2021), 86 FR 26558 (May 14, 2021) the NBBO after one second has passed 5 (SR–CboeEDGX–2021–025) (‘‘CboeEDGX Notice’’) Outside of regular trading hours, the Exchanges following the publication of the first operate certain extra-hours sessions. See CboeBYX (collectively, ‘‘Notices’’). The proposed rule two-sided quotation by the listing changes are nearly identical. Rules 1.5(c), (r), and (ee); CboeBZX Rules 1.5(c), (r), and (ee); CboeEDGA Rules 1.5(r), (s), and (ii); exchange following the resumption of 4 In the Amendments No. 1, the Exchanges: (i) CboeEDGX Rules 1.5(r), (s), and (ii). Added additional justification for the proposed rule trading after a halt, suspension, or 6 changes, stating that the proposed re-opening The Exchanges state that Tape B securities are pause. The Exchanges have stated that, process would provide certainty as to how orders those listed on exchanges other than NYSE and Nasdaq and Tape C securities are those listed on to simplify the re-opening during these will be handled across Tape A, B, and C securities timeframes, the Exchanges are not and promote consistency with the re-opening Nasdaq. See Notices, supra note 3. process used by the Exchanges in other 7 See CboeBYX Rule 11.23(d); CboeBZX Rule circumstances; (ii) stated that allowing one second 11.24(d); CboeEDGA Rule 11.7(d); CboeEDGX Rule 10 See proposed rules CboeBYX Rule to elapse prior to initiating the mid-point re- 11.7(d). 11.23(e)(1)(C); CboeBZX Rule 11.24(e)(1)(C); opening would ensure sufficient time for the 8 See CboeBYX Rule 11.23(e)(3); CboeBZX Rule CboeEDGA Rule 11.7(e)(1)(C); CboeEDGX Rule midpoint to accurately reflect the market; and (iii) 11.24(e)(3); CboeEDGA Rule 11.7(e)(3); CboeEDGX 11.7(e)(1)(C). made technical and conforming edits. Because the Rule 11.7(e)(3). 11 See proposed rules CboeBYX Rule Amendments No. 1 do not materially alter the 9 See CboeBYX Rule 11.23(e)(1); CboeBZX Rule 11.23(e)(1)(C); CboeBZX Rule 11.24(e)(1)(C); substance of the proposed rule changes and make 11.24(e)(1); CboeEDGA Rule 11.7(e)(1); CboeEDGX CboeEDGA Rule 11.7(e)(1)(C); CboeEDGX Rule conforming and technical changes, the Rule 11.7(e)(1). 11.7(e)(1)(C).

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proposing to retain a separate trigger stated that the proposal to not retain a SECURITIES AND EXCHANGE that would allow the re-opening process separate trigger whereby the reopening COMMISSION to be initiated immediately when the process for Tape B and C securities Exchanges receive both a two-sided [Release No. 34–92249; File No. SR–DTC– would be initiated immediately when 2021–005] quotation and a trade from the listing the Exchange receives both a two-sided exchange.12 quotation and a trade from the listing Self-Regulatory Organizations; The III. Discussion and Commission’s exchange would harmonize the Depository Trust Company; Notice of Findings reopening process with that for Tape A Filing of and Immediate Effectiveness of Proposed Rule Change To Modify The Commission has carefully securities, simplify the re-opening the DTC Settlement Service Guide and reviewed the proposed rule changes, as process to be followed during these the Form of DTC Pledgee’s Agreement modified by Amendments No. 1, and timeframes, and ensure that sufficient finds that they are consistent with the time is provided for the midpoint to June 24, 2021. requirements of the Act and the rules accurately reflect the market in those 16 Pursuant to Section 19(b)(1) of the and regulations thereunder applicable to securities. Securities Exchange Act of 1934 a national securities exchange, in The Commission believes that the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 particular, the requirements of Section proposals are reasonably designed to notice is hereby given that on June 15, 6(b) of the Act and the rules and facilitate a more orderly and efficient re- 2021, The Depository Trust Company 13 regulations thereunder. Specifically, opening process following the (‘‘DTC’’) filed with the Securities and the Commission finds that the resumption of trading after a trading Exchange Commission (‘‘Commission’’) proposals, as modified by Amendments halt, suspension, or pause during each the proposed rule change as described No. 1, are consistent with Section of the Exchanges’ extra-hours sessions. in Items I, II and III below, which Items 6(b)(5) of the Act,14 which requires, By providing a more consistent and have been prepared primarily by the among other things, that the rules of a harmonized approach to each of the clearing agency. DTC filed the proposed national securities exchange be rule change pursuant to Section designed to prevent fraudulent and Exchanges’ re-opening procedures, the proposals should promote greater 19(b)(3)(A) of the Act 3 and Rule 19b– manipulative acts and practices, to 4 certainty, reduce the likelihood of 4(f)(4) thereunder. The Commission is promote just and equitable principles of publishing this notice to solicit trade, to remove impediments to and confusion, and facilitate the resumption of orderly trading under such comments on the proposed rule change perfect the mechanism of a free and from interested persons. open market and a national market circumstances. system, and in general, to protect Therefore, the Commission finds that I. Clearing Agency’s Statement of the investors and the public interest. the proposals, as modified by Terms of Substance of the Proposed As described above, the Exchanges Amendments No. 1, are consistent with Rule Change seek to harmonize their respective the Act. The proposed rule change 5 would processes for re-opening trading in a modify the DTC Settlement Service security when a trading halt, IV. Conclusion Guide (‘‘Settlement Guide’’) 6 and the suspension, or pause in that security is form of DTC Pledgee’s Agreement lifted and trading in that security It is therefore ordered, pursuant to (‘‘Pledgee’s Agreement’’),7 as described resumes outside regular trading hours. Section 19(b)(2) of the Act,17 that the below. Specifically, the proposed rule In the Exchanges’ view, applying their proposed rule changes (SR–CboeBYX– change would revise text in the midpoint re-opening procedures in 2021–012, SR–CboeBZX–2021–035, SR– these circumstances, regardless of CboeEDGA–2021–011, and SR– 1 15 U.S.C. 78s(b)(1). whether a security is a Tape A, B, or C CboeEDGX–2021–025), as modified by 2 17 CFR 240.19b–4. security, would: (1) Provide greater Amendments No. 1, be, and hereby are, 3 15 U.S.C. 78s(b)(3)(A). consistency with the process currently approved. 4 17 CFR 240.19b–4(f)(4). used by the each of the Exchanges in 5 Capitalized terms not defined herein are defined For the Commission, by the Division of other circumstances, (2) provide greater in the Rules, By-Laws and Organization Certificate Trading and Markets, pursuant to delegated certainty as to how orders will be of DTC (‘‘Rules’’) available at http://www.dtcc.com/ authority.18 ∼/media/Files/Downloads/legal/rules/dtc_rules.pdf. handled across security types, and (3) 6 Available at https://www.dtcc.com/legal/rules- potentially provide executions that and-procedures. The Settlement Guide constitutes J. Matthew DeLesDernier, better reflect the applicable market for Procedures of DTC relating to its Settlement the security.15 The Exchanges have Assistant Secretary. services. Pursuant to the Rules, the term [FR Doc. 2021–13917 Filed 6–29–21; 8:45 am] ‘‘Procedures’’ means the Procedures, service guides, and regulations of DTC adopted pursuant to Rule 12 In addition to these proposed changes to the BILLING CODE 8011–01–P 27, as amended from time to time. See Rule 1, reopening process, the Exchanges also proposed Section 1, infra note 7. DTC’s Procedures are filed other technical and non-substantive changes to with the Commission. They are binding on DTC and their rules in order to facilitate the substantive each Participant in the same manner as they are changes explained above. See Notices, supra note bound by the Rules. See Rule 27, infra note 7. 3. CboeEDGA and CboeEDGX also proposed non- 7 Available at https://www.dtcc.com/legal/rules- substantive changes to conform CboeEDGA Rule and-procedures. Pursuant to Rule 2, Section 3, an 11.7 and CboeEDGX 11.7 to CboeBZX Rule 11.24. entity that uses DTC’s Pledge services must enter See CboeEDGA Notice and CboeEDGX Notice, into an agreement with DTC satisfactory to DTC. supra note 3. See Rule 2, Section 3, supra note 5. In this regard, 13 15 U.S.C. 78f. In approving these proposed rule DTC requires a Pledgee that is not a Participant to changes, the Commission has considered the sign a Pledgee’s Agreement. Participants enter into proposed rule changes’ impact on efficiency, a Participant’s Agreement that binds them to the competition, and capital formation. See 15 U.S.C. Rules and Procedures (including, but not limited to, 78c(f). those related to Pledge activity), and are not 16 See Amendments No. 1, supra note 4. 14 15 U.S.C. 78f(b)(5). required by DTC to enter into a separate Pledgee’s 15 See Notices, supra note 3, and Amendments 17 15 U.S.C. 78s(b)(2). Agreement. See also Rule 2, Section 1, supra note No. 1, supra note 4. 18 17 CFR 200.30–3(a)(12). 5 (providing terms of the Participant’s Agreement).

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Settlement Guide and Pledgee’s changes to the rules of DTC are companies, broker-dealers and other Agreement to clarify the text with described in greater detail below. Persons.10 A Pledgee may but need not respect to the processing of book entries be a Participant. A Pledgee is required II. Clearing Agency’s Statement of the of Pledge-related 8 activity at DTC. The by DTC to sign a Pledgee’s Agreement Purpose of, and Statutory Basis for, the proposed revisions would reflect in the unless it is also a Participant. Proposed Rule Change text of the Settlement Guide and Participants are not required to sign a Pledgee’s Agreement that Pledged In its filing with the Commission, the separate Pledgee’s Agreement to use Securities remain credited to a Pledgor’s clearing agency included statements DTC’s pledge services because the Account unless the Pledgee makes a concerning the purpose of and basis for Participant’s Agreement binds the demand for the Pledged Securities, as the proposed rule change and discussed Participant to DTC’s Rules and described below. In this regard, the any comments it received on the Procedures, including those relating to respective texts of the Settlement Guide proposed rule change. The text of these Pledge-related activity. Only a Pledgee and the Pledgee’s Agreement currently statements may be examined at the that is a Participant may receive a indicate that Pledged Securities are places specified in Item IV below. The Pledge Versus Payment.11 credited to a Pledgee’s Account. As clearing agency has prepared discussed below, the proposed rule summaries, set forth in sections A, B, Book Entry of Pledges and Legal Effect change relates to a technical aspect of and C below, of the most significant As indicated above, the definition of the operational processing of Pledge aspects of such statements. a ‘‘Security Entitlement’’ in the DTC transactions and would not impact the (A) Clearing Agency’s Statement of the Rules incorporates the definition of rights or obligations of a Participant or Purpose of, and Statutory Basis for, the such term in Article 8 of the NYUCC Pledgee are. The text of the proposed Proposed Rule Change and notes that ‘‘[t]he interest of a Participant or Pledgee in a Security 8 Pursuant to Rule 1, the defined term ‘‘Pledge’’ 1. Purpose in the Rules means, inter alia, ‘‘creating or credited to its Account is a Security providing for a security interest in a Certificated or The proposed rule change of DTC Entitlement.’’ Uncertificated Security, a Securities Account or a would modify the Settlement Guide and However, as more fully discussed Securities [sic] Entitlement in accordance with the the form of Pledgee’s Agreement, as NYUCC.’’ See Rule 1, supra note 5. Pursuant to below, while the Settlement Guide and Rule 1, the term ‘‘NYUCC’’ means the Uniform described below. Specifically, the the Pledgee’s Agreement make reference Commercial Code of New York, as amended from proposed rule change would revise text to the movement of Securities to a time to time. See Rule 1, supra note 5. Pursuant to in the Settlement Guide and Pledgee’s Pledgee’s Account, from an operational Rule 1, the term ‘‘Certificated Security’’ has the Agreement to clarify the text with meaning given to the term ‘‘certificated security’’ in standpoint, DTC does not in fact credit Section 8–102 of the NYUCC. See Rule 1, supra respect to the processing of book entries a Security to an Account of a Pledgee; 9 note 5. Pursuant to Section 8–102 of the NYUCC, of Pledge-related activity at DTC. The what the Pledgee receives is not a ‘‘certificated security’’ means a security that is proposed revisions would reflect in the Security Entitlement. The Securities represented by a certificate. See NYUCC 8–102. text of the Settlement Guide and Pursuant to Rule 1, the term ‘‘Uncertificated remain credited to the Pledgor’s account Security’’ has the meaning given to the term Pledgee’s Agreement that Pledged until the Pledgee releases the Pledged ‘‘uncertificated security’’ in Section 8–102 of the Securities remain credited to a Pledgor’s Securities or makes a demand for the NYUCC. See Rule 1, supra note 5. Pursuant to Account unless the Pledgee makes a Pledged Securities, as discussed below. Section 8–102 of the NYUCC, ‘‘uncertificated demand for the Pledged Securities, as security’’ means a security that is not represented Rather, a notation is placed on the by a certificate. Pursuant to Rule 1, the term described below. In this regard, the Account of the Pledgor that the ‘‘Securities Account’’ (1) as used with respect to a respective texts of the Settlement Guide Securities are Pledged to the Pledgee, Participant or Pledgee, means an account and the Pledgee’s Agreement currently and the Securities remain in Pledged maintained by DTC for the Participant or Pledgee indicate that Pledged Securities are to which Securities transactions of the Participant status until the Pledgee instructs or Pledgee effected through the facilities of DTC are credited to a Pledgee’s Account. As otherwise. debited and credited in the manner specified in the discussed below, the proposed rule Rules and Procedures; and (2) as used with respect change relates to a technical aspect of As described below, this bookkeeping to DTC, means an internal account of DTC to which the operational processing of Pledge method does not adversely impact the Securities transactions are debited and credited to transactions and would not impact the rights of the Pledgee in that the Pledgee DTC. See Rule 1, supra note 5. Pursuant to Rule 1, maintains Control over the Pledged the term ‘‘Security Entitlement’’ has the meaning rights or obligations of a Participant or given to the term ‘‘security entitlement’’ in Section Pledgee. Securities, and the Pledged Securities 8–102 of the NYUCC. The interest of a Participant The following discussion is provided cannot be used by the Pledgor for any or Pledgee in a Security credited to its Account is by DTC and includes, but is not limited other transaction unless the Pledgee a Security Entitlement. See id. Pursuant to Section releases the Securities from the Pledged 8–102 of the NYUCC, ‘‘security entitlement’’ means to, its own analysis of applicable state the rights and property interest of an entitlement law provisions that DTC believes are status through an instruction to DTC. holder with respect to a financial asset specified in relevant for purposes of describing the Part 5. See NYUCC § 8–102. NYUCC § 8–501(b) DTC’s Description of Pledge provides that a person acquires a ‘‘security proposed rule change. The Settlement Guide states that: entitlement’’ when, inter alia, a securities Background intermediary indicates by book entry that a ‘‘[w]hen pledging securities to a financial asset has been credited to the person’s Eligibility for Pledge Services securities account. The absence of the crediting of pledgee, the pledgor’s position is moved a financial asset to an account of a Pledgee and the The Pledge services of DTC are from the pledgor’s general free account fact that an account of a Pledgee is not a securities available to banks, trust companies, to the pledgee’s account which prevents account under Article 8 mean that the Pledgee has broker-dealers and other Persons the pledged position from being used to not acquired a security entitlement under Article 8. complete other transactions. Likewise, See NYUCC § 8–501(b). Pursuant to Section 8–102, approved by DTC, which have entered ‘‘entitlement holder’’ means a person identified in into an agreement with DTC that is the release of a pledged position would the records of a securities intermediary as the satisfactory to it, for the purpose of move the pledged position back to the person having a security entitlement against the effecting a Pledge of Deposited pledgor’s general free account where it securities intermediary. If a person acquires a security entitlement by virtue of Section 8–501(b)(2) Securities to such banks, trust or (3), that person is the entitlement holder. See 10 See Rule 2, Section 3, supra note 5. NYUCC § 8–102. 9 See supra note 8. 11 See id.

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would then be available to complete Pledge, Release or Withdrawal of a entitlement, acknowledges that it has other transactions.’’ 12 Security credited to a Securities control on behalf of the purchaser.’’ Paragraph 2 of DTC’s form of Account is an Entitlement Order’’. Under NYUCC Section 1–102,17 a Pledgee’s Agreement provides that: Note that the definition of an purchaser is ‘‘a person that takes by ‘‘[s]o long as Pledgee shall maintain a Entitlement Order does not require that purchase’’ with ‘‘purchase’’ being Depository Trust account, Depository Trust, the Security be credited to a Securities defined as ‘‘taking by sale, lease, upon the pledge to Pledgee of securities held Account of the instructor. The breadth discount, negotiation, mortgage, pledge, by Depository Trust for the account of any of this definition allows permitted lien, security interest, issue or reissue, depositor in Depository Trust, will make entities, such as Pledgees, to issue gift, or any other voluntary transaction appropriate entries on its books transferring Entitlement Orders to DTC in respect of the securities from the account of such creating an interest in property’’. Securities credited to Securities depositor to the account of Pledgee and shall NYUCC Section 8–106(f) further maintain such securities in the account of Accounts belonging to others. DTC Rule 9(B) 13 provides that: provides that ‘‘[a] purchaser has Pledgee until instructed by Pledgee to release ‘‘control’’ under subsection (c)(2) or such securities to the account of the pledgor, ‘‘[i]f [DTC] receives an instruction to deliver such securities to the order of from a Pledgee to effect a Delivery or (d)(2) even if any duty of the issuer or Pledgee or to transfer such securities on the Withdrawal of Pledged Securities, such the securities intermediary to comply books of Depository Trust to the account of instruction shall have the effect of with instructions or entitlement orders a depositor in Depository Trust other than notifying [DTC] that the Pledgee elects originated by the purchaser is subject to the pledgor.’’ not to Release the Pledged Securities any condition or conditions (other than The descriptions of DTC’s Pledge but, rather, to assert its Control over the further consent by the registered owner arrangements in the (1) Settlement Pledged Securities by the transfer of a or the entitlement holder).’’ Guide, with respect to the text shown greater interest in the Pledged Securities Official Comment 4 to NYUCC above, and as more fully described to itself or another Person. [DTC] shall Section 8–106 18 notes that: below, and (2) form of Pledgee’s accept such an instruction as a ‘‘[s]ubsection (d)(2) provides that a Agreement are imprecise because in representation that the Pledgee is acting purchaser has control if the securities practice DTC does not move or transfer in accordance with applicable law, rules intermediary has agreed to act on the securities from an account of the or regulations, agreements or any entitlement orders originated by the Pledgor to an account of the Pledgee, as adjudication thereof.’’ purchaser if no further consent by the more fully described below. Under NYUCC Section 8–507(a),14 a entitlement holder is required. Under The definition of a ‘‘Security securities intermediary satisfies its duty subsection (d)(2), control may be Entitlement’’ in the DTC Rules to comply with an Entitlement Order if achieved even though the original incorporates the definition of such term it acts with respect to the duty as agreed entitlement holder remains as the in Article 8 of the NYUCC and notes upon by the entitlement holder and the entitlement holder.’’ that ‘‘[t]he interest of a Participant or securities intermediary. DTC satisfies its Example 6 of Official Comment 4 is Pledgee in a Security credited to its duty to comply with an Entitlement illustrative: Account is a Security Entitlement.’’ Order if it acts with respect to the duty However, since DTC is not in fact as agreed upon by the Entitlement ‘‘Able & Co., a securities dealer, grants crediting a Security to an Account of a Holder and the Securities Intermediary. Alpha Bank a security interest in a security Pledgee, what the Pledgee receives is entitlement that includes 1000 shares of XYZ In the case of Security Entitlements Co. stock that Able holds through an account not a Security Entitlement. Pledged on the books of DTC, DTC The definition of an ‘‘Entitlement with Clearing Corporation. Able causes satisfies its duty to comply with an Clearing Corporation to transfer the shares Holder’’ in the DTC Rules incorporates Entitlement Order by complying with into a pledge account, pursuant to an the definition of such term in Article 8 the Entitlement Order of the Pledgee. agreement under which Able will continue to of the NYUCC (as to which see below) receive dividends, distributions, and the like, and notes that ‘‘[a] Participant or Control but Alpha has the right to direct dispositions. Pledgee is an Entitlement Holder with Under NYUCC Section 9–106(a),15 As in Example 3, Alpha has control of the respect to a Security credited to its ‘‘[a] person has control of a certificated 1000 shares under subsection (d)(2).’’ Account’’. security, uncertificated security, or However, since DTC is not in fact In the case of security entitlements security entitlement as provided in Pledged on the books of DTC, because crediting a Security to an Account of a 16 Section 8–106’’. DTC will comply with the instructions Pledgee, the Pledgee is not an Under NYUCC Section 8–106(d), ‘‘[a] Entitlement Holder. However, the of a Pledgee as provided for in Rule purchaser has ‘‘control’’ of a security 19 Pledgee maintains Control of the 9(B), which is an agreement between entitlement if: DTC and its Participants and Pledgees, Pledged Securities as more fully (1) the purchaser becomes the described below. A key to a Pledgee a Pledgee has control of such security entitlement holder; entitlements under NYUCC Section 8– exercising its Control is its ability to (2) the securities intermediary has 106(d)(2) even when the Pledged instruct through DTC an Entitlement agreed that it will comply with Securities remain credited to the Order for the delivery, Pledge release or entitlement orders originated by the account of the Pledgor. withdrawal of a security. purchaser without further consent by DTC’s Pledge arrangements operate Entitlement Order the entitlement holder; or (3) another person has control of the pursuant to the DTC Rules and the The definition of an ‘‘Entitlement security entitlement on behalf of the NYUCC. When Security Entitlements Order’’ in the Rules incorporates the purchaser or, having previously are Pledged to a Pledgee through the definition of such term in Article 8 of acquired control of the security facilities of DTC, the Pledgee has a the NYUCC that ‘‘[a]n instruction from security interest in such Pledged a Participant or Pledgee to the 13 See Rule 9(B), supra note 5. Corporation with respect to a Delivery, 14 NYUCC § 8–507(a). 17 See NYUCC § 1–102. 15 See NYUCC § 9–106(a). 18 See NYUCC § 8–106. 12 See Settlement Guide, supra note 6 at 3–4. 16 NYUCC § 8–106. 19 See Rule 9(B), supra note 5.

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Security Entitlements.20 A Pledgee has Settlement Guide to reflect that Pledged notation showing the status of the position as ‘‘control’’ under Articles 8 and 9 of the Securities would not move to an Pledged by the Pledgor to the Pledgee. This NYUCC and under the DTC Rules of any Account of the Pledgee. As discussed status systemically [which] prevents the Security Entitlements Pledged to it above, the movement of the securities is [pledged] Pledged position from being used 21 to complete other transactions. Likewise, the through the facilities of DTC, and the not required to effect a Pledge and does release of a [pledged] Pledged position Pledgee is empowered to issue not impact the rights of Pledgor or [would move the pledged position back to Entitlement Orders 22 to DTC to direct Pledgee under the Rules or the NYUCC. the] results in the removal of the notation of the release, delivery or withdrawal of Rather Pledged Securities continue to be the Pledge status of the position and the any such Pledged Security Entitlements. credited to the Pledgor’s account, position would become [pledgor’s general however with a system notation free account where it would then be] Example of a Pledge by a Participant to showing the status of the position as available to the Pledgor to complete other a Pledgee Pledged by the Pledgor to the Pledgee. transactions.’’ When Security Entitlements credited This status systemically prevents the (b) Text included under the heading to Participant A’s account at DTC are Pledged position from being used to ‘‘About the Product’’ that appears under Pledged to Pledgee B through the complete other transactions, which is the heading ‘‘Collateral Loan facilities of DTC, B has a security consistent with the Pledgee’s Control Program’’ 25 would be revised as interest in such Pledged security over the Pledged Securities, as follows: entitlements.23 discussed above. Likewise, the release ‘‘The Collateral Loan Program allows you B does not itself have ‘‘security of a Pledged position results in the to [pledge] Pledge securities [from] held in entitlements’’ to the underlying removal of the notation of the Pledge your general free account as collateral for a securities and B is not an ‘‘entitlement status of the position and the position loan or for other purposes (such as Letters of holder’’ as such terms are defined in the would become available to the Pledgor Credit) to a [pledgee] Pledgee participating in NYUCC. to complete other transactions. the program. You can also request the However, B as Pledgee would have The changes to the Settlement Guide [pledgee] Pledgee to release [pledge] Pledged ‘‘control’’ under Articles 8 and 9 of the text are technical in nature, and while securities [back to your general free account]. NYUCC and under the Rules of any enhancing clarity with respect to the These [pledges] Pledges and releases can be free (when money proceeds are handled Security Entitlements Pledged to it book entries performed by DTC as they through the facilities of DTC, and B is outside DTC) or valued (when money relate to Pledge activity, the change proceeds are applied as debits and credits to empowered to issue Entitlement Orders would not impact the rights or the [pledgee’s] Pledgee’s and [pledgor’s] to DTC to direct the release, delivery or obligations of Participants and Pledgees. Pledgor’s money settlement accounts). A withdrawal of any such Pledged In this regard, the applicable sections of Pledgee may, but need not be, a Participant. Security Entitlements. the Settlement Guide would be revised Only a Pledgee which is a Participant may receive valued [pledges] Pledges.’’ Proposed Rule Change to (1) clarify the text with respect operational aspect of book entries of (c) Text included under the heading Proposed Change to Text of Settlement Pledges, as discussed above, (2) make ‘‘Pledges to the Options Clearing Guide changes to text for readability necessary Corporation’’ 26 would be revised as Pursuant to the proposed rule change, in the context of the proposed follows: DTC would revise the text of the clarification, and (3) revise text for ‘‘A Participant writing an option on any consistency related to the use of the options exchange may fully collateralize that 20 The interest transferred is, however, only a defined terms, including, but not option by [pledging] Pledging the underlying security interest if the Pledgor and Pledgee have an limited to, Delivery Versus Payment, securities by book-entry through DTC to the agreement outside of DTC that constitutes a security Options Clearing Corporation (OCC). If the agreement under applicable law and as to which the Pledge, Pledgee, Pledgor and Pledge other requirements for attachment and Versus Payment, as follows: (italicized option is called (exercised), the securities enforceability of a security interest have been text indicates additions; [bracketed] text may be released and delivered to the holder satisfied. The agreement is entered into by the indicates deletions): of the call. If the option contract is not parties outside of DTC, and DTC does not have (a) Text included in Item 3 (Collateral exercised, OCC validates a release of the knowledge or information on the existence of such [pledged] Pledged securities [, which are then an agreement between the parties. Loans) set forth under the heading 24 returned to the Participant’s general free 21 The definition of ‘‘Control’’ in the Rules ‘‘Settlement Transactions’’ would be account].’’ incorporates the definition of such term in Article revised as follows: 8 of the NYUCC and notes that ‘‘[a] Pledgee has (d) Text included under the heading Control of Pledged Securities until they are ‘‘The collateral loan service allows a ‘‘Release of Deposits with Options Participant (the [pledgor] Pledgor) to [pledge] Delivered, Released or Withdrawn by the Pledgee.’’ Clearing Corporation on Expired See Rule 1, Section 1, supra note 5. Pledge securities as collateral for a loan or for 22 The definition of an ‘‘Entitlement Order’’ in the other purposes and also request the release Options’’ would be revised as follows: Rules incorporates the definition of such term in of [pledged] Pledged securities. This service ‘‘OCC automatically releases securities Section 8–102 of the NYUCC and notes that ‘‘[a]n allows such [pledges] Pledges and [pledge] deposited with it to cover margin instruction from a Participant or Pledgee to the Pledge releases to be made free, meaning that requirements on an option contract when the Corporation with respect to a Delivery, Pledge, the money component of the transaction is option contract expires. [The securities are Release or Withdrawal of a Security credited to a settled outside of the depository, or valued, Securities Account is an Entitlement Order’’. As then allocated to your general free account.] noted above, pursuant to Section 8–102, meaning that the money component of the Notification of the released securities is ‘‘entitlement order’’ means a notification transaction is settled through DTC as a debit/ received via the Collateral Loan Services communicated to a securities intermediary credit to the [pledgor’s] Pledgor’s and functionality in the Settlement User Interface directing transfer or redemption of a financial asset [pledgee’s] Pledgee’s DTC money settlement or automated output.’’ to which the entitlement holder has a security account. When [pledging] Pledging securities entitlement. See NYUCC 8–102. to a [pledgee] Pledgee, the [pledgor’s] (e) In addition to any proposed 23 As mentioned above, the interest transferred is, Pledgor’s position [is moved from the changes to apply generally with respect however, only a security interest if A and B have Pledgor’s general free account to the to the Settlement Guide text as an agreement outside of DTC that constitutes a Pledgee’s account] continues to be credited to described above, text included under security agreement under applicable law and as to which the other requirements for attachment and the Pledgor’s account, however with a system enforceability of a security interest have been 25 See Settlement Guide, supra note 6 at 8–9. satisfied. 24 See Settlement Guide, supra note 6 at 3–4. 26 See Settlement Guide, supra note 6 at 10.

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the heading ‘‘Shared Control ‘‘original account’’) to its shared control the payable date are credited to the Accounts’’ 27 would be revised to delete account in order to grant a security shared control account. text shown below that states ‘‘Pledgee interest or other interest in the securities 4. The securities credited to a shared accounts continue to be available at to the [pledgee] Pledgee. The shared control account cannot be designated as DTC.’’ This sentence was added to the control account is an account of the or included in the collateral for any text when Shared control account Participant and is identified with a obligation of the Participant or the arrangements were added to the separate account number from any other [pledgee] Pledgee to DTC. DTC has no Procedures 28 to clarify that the existing account of the Participant. A Participant lien or other interest in any securities Pledge-related services would continue may establish multiple shared control credited to a shared control account.’’ to be offered. As both the original accounts, but only one [pledge] Pledge Proposed Change to Text of the Pledge program and the Shared control can be designated for each shared Pledgee’s Agreement account process are both established control account. programs, DTC believes the sentence is 2. Except as modified by these Pursuant to the proposed rule change, no longer necessary. procedures, the operation of a shared DTC would revise the text of the control account is identical to the Pledgee’s Agreement to reflect that About the Product operation of a DTC [pledge] Pledge Pledged Securities do not move to a Shared control accounts are available [account] and all DTC procedures Pledgee account. The change is as an alternative to ‘‘agreement to applicable to [pledge] Pledge [accounts] technical in nature and while enhancing pledge’’ arrangements. are applicable to shared control clarity with respect to the book entries Background accounts. No [deliveries vs. payment] performed by DTC as they relate to Deliveries Versus Payment, [pledges vs. Pledge activity, the change would not When a Participant [pledges] Pledges payment] Pledges Versus Payment, or impact the rights or obligations of securities to [the pledgee account of] a physical deposits can be made to a Participants and Pledgees pursuant to [pledge] Pledgee at DTC (sometimes shared control account and no the Rules, Settlement Guide and/or the called a ‘‘hard pledge’’), the securities [deliveries vs. payment ] Pledges Versus Pledgee’s Agreement. In this regard, the are under the sole control of the Payment, [pledges vs. payment] Pledges applicable text of the Pledgee’s [pledgee] Pledgee. Only the [pledgee] Versus Payment, or physical Agreement would be revised as follows: Pledgee can redeliver or release the withdrawals can be made from a shared (italicized text indicates additions; securities. [Pledgee accounts continue to control account. A Participant should [bracketed] text indicates deletions): be available at DTC.] not deliver securities to another ‘‘[s]o long as Pledgee shall maintain a Shared control accounts are available Participant’s shared control account. In Depository Trust account, Depository at DTC as an alternative to agreement to the instructions for a delivery of Trust, upon the pledge to Pledgee of [pledge] Pledge (sometimes called securities to a shared control account, securities held by Depository Trust for ‘‘agreement to deliver’’) arrangements. A the mandatory hypothecation code field the account of any depositor in [pledgee] Pledgee has control over should be completed in the same Depository Trust, will make appropriate securities delivered by a Participant to manner as it is for a Pledge made entries on its books to indicate the the Participant’s shared control account without the use of a shared control pledge of [transferring] the securities at DTC since the [pledge] Pledgee has [delivery to a pledge] account. The DTC from [the account of] such depositor to the ability to redeliver the securities fees and charges for a transaction the [account of] Pledgee and shall without further consent by the involving a shared control account are maintain such securities [in the account Participant. Until the [pledgee] Pledgee the same as the fees and charges for a of] with a notation that the securities are redelivers the securities, the Participant Pledge transaction that does not pledged by the depositor to the Pledgee has the flexibility to redeliver or make [involving] involve a [pledge] Pledge until instructed by Pledgee to release substitutions for the securities without account. The DTC monthly account such securities to the [account of the] obtaining the [pledgee’s] Pledgee’s usage charges applicable to a shared pledgor, to deliver such securities to the release of the securities. control account are charged to the order of Pledgee or to transfer such Shared controls are separately Participant. The DTC reports and identified in DTC’s Reference Directory. securities on the books of Depository statements to the Participant and the Trust to the account of a depositor in Participants interested in establishing a [pledge] Pledge for a transaction shared control account should contact Depository Trust other than the involving a shared control account are pledgor.’’ their Relationship Manager. the same as the reports and statements Procedures for DTC Shared Control for a transaction involving a [pledge] Effective Date Accounts Pledge that does not involve a shared The proposed rule change would The following procedures are an control account. become effective upon filing. 3. [As with a pledge account, addition to DTC’s Procedures for voting]Voting rights on the securities 2. Statutory Basis Pledgees. credited to a shared control account are 29 1. Any Participant may establish a Section 17A(b)(3)(F) of the Act, assigned to the Participant. Cash shared control account at DTC and may requires that the rules of the clearing dividend and interest payments and designate any DTC [pledgee] Pledgee to agency be designed, inter alia, to other cash distributions on such be the [pledgee] Pledgee for that shared promote the prompt and accurate securities are credited to the original control account. A Participant may clearance and settlement of securities account. Distribution of securities for deliver securities (or other financial transactions. DTC believes that the which the ex-distribution date is on or assets) by a [free pledge] Free Pledge proposed rule change is consistent with prior to the payable date or in which the from any of its DTC accounts (the this provision of the Act for the reasons distribution is payable in a different described below. security are also credited to the original As described above, the proposed rule 27 See Settlement Guide, supra note 6 at 15–16. 28 See Securities Exchange Act Release No. 40191 account. Any stock splits or other change would allow Participants and (July 10, 1998), 63 FR 38444 (July 16, 1998) (SR– distributions of the same securities for DTC–98–5). which the ex-distribution date is after 29 15 U.S.C. 78q–1(b)(3)(F).

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Pledgees to more readily understand the reject the filing and it was subsequently Electronic Comments Rules and Procedures relating to the removed from the DTCC website. • Use the Commission’s internet processing of book entries of Pledges at In the time it has taken for DTC to DTC by (1) clarifying text to more comment form (http://www.sec.gov/ refile the proposal, DTC has received rules/sro.shtml); or accurately reflect the operational several written comments, which, again, process of how book entries of Pledges • were filed as an Exhibit 2 to the Send an email to rule-comments@ are entered on DTC’s system, and (2) proposal. Although DTC understands sec.gov. Please include File Number SR– making changes to text for readability DTC–2021–005 on the subject line. necessary in the context of the proposed those comments to be generally clarification. By clarifying the Rules to supportive of the proposed changes, Paper Comments facilitate Participants’ and Pledgees’ based on DTC’s review of each of the • Send paper comments in triplicate ability to understand the operational comments, DTC believes there is a to Secretary, Securities and Exchange processes relating to Pledge services, general misunderstanding of the Commission, 100 F Street NE, and in particular with respect to how purpose of this proposed rule change. Washington, DC 20549. book-entries are made on DTC’s system For the sake of clarity, and as more with respect to Pledge transactions, DTC fully described above, this proposed All submissions should refer to File believes that the proposed changes rule change will not alter DTC’s current Number SR–DTC–2021–005. This file would facilitate Participants’ and practices. Rather, it will merely clarify number should be included on the Pledgees’ ability to process Pledge how securities Pledged through DTC are subject line if email is used. To help the transactions by enhancing their recorded in DTC’s system. More Commission process and review your understanding of how Securities subject specifically, and as more fully described comments more efficiently, please use to a Pledge transaction are credited to above, the Settlement Guide currently only one method. The Commission will and held in a Pledgee’s Account states that Securities Pledged through post all comments on the Commission’s pending either their release from Pledge DTC are held in an account of the internet website (http://www.sec.gov/ or the exercise of a demand for the Pledgee. However, in practice, the rules/sro.shtml). Copies of the Pledged Securities by the Pledgee. Securities remain in the Pledgor’s submission, all subsequent Therefore, by facilitating the ability of account but are marked as Pledged. This amendments, all written statements Participants to understand how book- is the existing practice today and will with respect to the proposed rule entries of Securities movements are not change. Rather, the proposed change change that are filed with the performed and how Pledged Securities will clarify the text of the Settlement Commission, and all written are held, DTC believes the proposed Guide to better reflect the current communications relating to the rule change would promote the prompt proposed rule change between the and accurate clearance and settlement of practice. The change will not affect the securities transactions, consistent with legal rights or obligations of the parties Commission and any person, other than Section 17A(b)(3)(f) of the Act.30 involved in the pledge. those that may be withheld from the DTC will notify the Commission of public in accordance with the (B) Clearing Agency’s Statement on any additional written comments provisions of 5 U.S.C. 552, will be Burden on Competition received by DTC. available for website viewing and DTC does not believe that the printing in the Commission’s Public proposed rule change would have any III. Date of Effectiveness of the Reference Room, 100 F Street NE, impact on competition because it would Proposed Rule Change, and Timing for Washington, DC 20549 on official merely make technical clarifying Commission Action business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the changes and changes for enhanced The foregoing rule change has become filing also will be available for readability to the text of the Settlement effective pursuant to Section inspection and copying at the principal Guide and the Pledgee’s Agreement that 19(b)(3)(A) 31 of the Act and paragraph would not otherwise affect Participants’ office of DTC and on DTCC’s website (f) 32 of Rule 19b–4 thereunder. At any and Pledgees’ rights or obligations. (http://dtcc.com/legal/sec-rule- time within 60 days of the filing of the filings.aspx). All comments received (C) Clearing Agency’s Statement on proposed rule change, the Commission will be posted without change. Persons Comments on the Proposed Rule summarily may temporarily suspend submitting comments are cautioned that Change Received From Members, such rule change if it appears to the we do not redact or edit personal Participants, or Others Commission that such action is identifying information from comment Written comments relating to this necessary or appropriate in the public submissions. You should submit only proposed rule change were received by interest, for the protection of investors, information that you wish to make DTC and were filed as an Exhibit 2 to or otherwise in furtherance of the available publicly. All submissions the proposal, as required by the Form purposes of the Act. should refer to File Number SR–DTC– 19b–4 and the General Instructions IV. Solicitation of Comments 2021–005 and should be submitted on thereto. or before July 21, 2021. Interested persons are invited to The proposed rule change was For the Commission, by the Division of submit written data, views and originally filed with the Commission in Trading and Markets, pursuant to delegated April 2021 and posted to the website of arguments concerning the foregoing, authority.33 DTC’s parent company, The Depository including whether the proposed rule J. Matthew DeLesDernier, Trust and Clearing Corporation change is consistent with the Act. (‘‘DTCC’’). However, because the filing Comments may be submitted by any of Assistant Secretary. did not satisfy a regulatory formatting the following methods: [FR Doc. 2021–13912 Filed 6–29–21; 8:45 am] requirement, the Commission had to BILLING CODE 8011–01–P 31 15 U.S.C 78s(b)(3)(A). 30 Id. 32 17 CFR 240.19b–4(f). 33 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE Exchange proposes to add Rule improve market participant’s COMMISSION 7300(c)(4) (Remaining Preferred Market understanding of the BOX trading Maker Interest) to more accurately system and will continue to conform [Release No. 34–92255; File No. SR–BOX– 2021–16] describe the Preferenced Order with the Exchange’s existing rules to allocation methodology. The Exchange treat Legging Orders last in priority. Self-Regulatory Organizations; BOX notes that the allocation as described by Therefore, the Exchange is proposing Exchange LLC; Notice of Filing and the proposed rule text is consistent with additional rule text detailing that if after Immediate Effectiveness of a Proposed the Exchange’s current allocation the allocation of all orders and quotes in Rule Change To Amend BOX Rule 7300 methodology. 7300(c)(1) through (3), there still (Preferenced Orders) As background, a Preferenced Order is remains an unallocated quantity of the any order (single leg or complex) Preferenced Order, the remaining June 24, 2021. submitted by a Participant to the quantity of the Preferenced Order will Pursuant to Section 19(b)(1) of the Exchange for which a specific Market be allocated to any Preferred Market Securities Exchange Act of 1934 Maker is designated (a ‘‘Preferred Maker quote size exceeding the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Market Maker’’) to receive execution preferred allocation percentage in notice is hereby given that on June 11, priority, with respect to a portion of the 7300(c)(2). Additionally, if at the end of 2021, BOX Exchange LLC (‘‘Exchange’’) Preferenced Order.3 Except as described the proposed Remaining Preferred filed with the Securities and Exchange in further detail below, Preferenced Market Maker Interest allocation, any Commission (‘‘Commission’’) the Orders are treated the same as other interest remains, the balance of the proposed rule change as described in orders submitted to the Exchange and Preferenced Order will be allocated to Items I and II below, which Items have executed in price/time priority Legging Orders, thereby maintaining been prepared by the self-regulatory according to the existing matching their existing designation as last in organization. The Commission is algorithm on the Exchange.4 For each priority. publishing this notice to solicit price level at which all order quantities Lastly, the Exchange proposes a comments on the proposed rule change on the BOX Book are fully executable technical amendment to Rule 7300(c)(2) from interested persons. against a Preferenced Order on a single to include the word ‘‘Preferred’’ in order I. Self-Regulatory Organization’s options series, all such orders at that to more accurately describe the Statement of the Terms of Substance of price will be filled and the balance of allocation to the Preferred Market the Proposed Rule Change the Preferenced Order, if any, will be Marker. executed, to the extent possible, against The Exchange proposes to amend orders at the next best price level.5 2. Statutory Basis BOX Rule 7300 (Preferenced Orders). However, at the final price level, where The Exchange believes that the The text of the proposed rule change is the remaining quantity of the proposal is consistent with the available from the principal office of the requirements of Section 6(b) of the Act,8 Exchange, at the Commission’s Public Preferenced Order is insufficient to match the total quantity of orders on the in general, and Section 6(b)(5) of the Reference Room and also on the 9 Exchange’s internet website at http:// BOX Book, the allocation algorithm for Act, in particular, in that it is designed boxoptions.com. orders executable against the remaining to prevent fraudulent and manipulative quantity of the Preferenced Order will acts and practices, to promote just and II. Self-Regulatory Organization’s differ from the regular price/time equitable principles of trade, to foster Statement of the Purpose of, and priority algorithm by allocating cooperation and coordination with Statutory Basis for, the Proposed Rule executions in the following order: (1) To persons engaged in facilitating Change Public Customers, (2) a preferred transactions in securities, to remove In its filing with the Commission, the percentage to the Preferred Market impediments to and perfect the self-regulatory organization included Maker (subject to certain conditions mechanism of a free and open market statements concerning the purpose of, explained in Rule 7300), (3) to all and a national market system, and, in and basis for, the proposed rule change remaining quotes and orders on single general to protect investors and the and discussed any comments it received option series and (4) to any Legging public interest. on the proposed rule change. The text Order.6 The Exchange’s proposal to amend of these statements may be examined at The Exchange’s proposal seeks to Rule 7300 is consistent with the Act the places specified in Item IV below. further clarify the allocation process.7 because it adds more context to the The self-regulatory organization has The current rule text does not specify Exchange’s current Rulebook and prepared summaries, set forth in what happens to the Preferred Market coincides with the Exchange’s original Sections A, B, and C below, of the most Maker’s remaining quote quantity that proposal to give Legging Orders last significant aspects of such statements. exceeds the size of their preferred priority under Rule 7300. Specifically, percentage allocation pursuant to when the Exchange first adopted Rule A. Self-Regulatory Organization’s 7300(c)(2). The Exchange notes although 7300 (Preferenced Order Rule) the Statement of the Purpose of, and such an allocation rarely occurs, the Exchange explained that Legging Orders Statutory Basis for, the Proposed Rule Exchange believes this proposal will would be given last priority which Change preserved the established priority of 1. Purpose 3 See BOX Rule 7300(a). Legging Orders since they had last 4 See BOX Rule 7300(b). priority under the then existing The purpose of the proposed rule 5 See BOX Rule 7300(c). allocation algorithm.10 The Exchange change is to amend BOX Rule 7300 to 6 See id. A Legging Order is a Limit Order on the provide greater clarification about the BOX Book that represents one side of a Complex Exchange’s current allocation process Order that is to buy or sell an equal quantity of two 8 15 U.S.C. 78f(b). 9 for Preferenced Orders. Specifically, the options series resting on the Complex Order Book. 15 U.S.C. 78f(b)(5). 7 The Exchange notes, no system changes to 10 See Securities Exchange Release No. 34–74210 existing functionality are being made pursuant to (February 5, 2015), 80 FR 7663 (February 11, 2015) 1 15 U.S.C. 78s(b)(1). this proposal. Rather, this proposal is designed to (SR–BOX–2014–28) (Commission Order Approving 2 17 CFR 240.19b–4. reduce any potential investor confusion. BOX Rule 7300).

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notes this is still true today.11 When the remains any unallocated quantity of a consistent terminology in the rule and Exchange originally adopted Legging PIP Order, then an allocation to Legging thereby further protect investors and the Orders it noted that Legging Orders Orders will be made.14 Therefore, the public interest because it makes the rule would only execute after all other Exchange believes the current proposal easier for Participants to comprehend. executable interest on the BOX Book at provides consistency within its B. Self-Regulatory Organization’s the same price was executed in full, and rulebook, reduces the potential for Statement on Burden on Competition therefore would not negatively impact investor confusion, and meets investor the regular market.12 The Exchange expectations of treating Legging Orders The Exchange does not believe that notes the current proposal continues to last in priority for trade allocations. the proposed rule change will impose uphold this priority scheme by ensuring Additionally, the Exchange notes at any burden on competition not all interest on the BOX Book executes least one other exchange also designates necessary or appropriate in furtherance before Legging Orders. Legging Orders for last priority and of the purposes of the Act. As indicated In addition, the Exchange believes the explicitly holds that Legging Orders are above, no system changes to existing proposal brings greater clarity to its last in priority for one of its execution functionality/priority are being made rules and helps foster coordination with algorithms.15 Specifically, similar to the pursuant to this proposal; rather, this persons engaged in facilitating Exchange’s current Legging Orders Rule proposal is designed to reduce any transactions in securities because the 7240(c), Nasdaq ISE, LLC (‘‘ISE’’) potential investor confusion as to the proposal codifies how part of the Options 3, Section 7(k)(2) maintains that allocation methodology for Preferenced trading system currently functions. The legging orders are executed only after all Orders presently available on the Exchange’s proposal, which more other executable orders (including any Exchange. Therefore, the proposed clearly explains how the system non-displayed size) and quotes at the changes are designed to enhance clarity allocates Preferenced Orders, protects same price are executed in full. Further, and consistency in the Exchange’s investors and the public interest under ISE’s Size Pro-Rata Execution Rulebook. Furthermore, the Exchange because it adds specificity to the rules Algorithm, ISE holds that only after all believes the proposed rule change will with respect to current system other remaining interest has been fully not impose any unnecessary burden on functionality. Specifically, the proposed executed will Legging Orders be competition because it coincides with change will further clarify the current allocated.16 Therefore, the Exchange the Exchange’s existing rules and rule to more specifically describe the believes the proposal further aligns its allocation methodologies by treating order in which the system handles rulebook with at least one other Legging Orders last in priority. Preferenced Order allocation on BOX. exchange within the industry and As such, the Exchange does not The additional detail makes it clear that thereby fosters cooperation and believe that the proposed rule change after the allocation of all orders and coordination with persons engaged in will impose any burden on competition quotes in 7300(c)(1) through (3), there facilitating transactions in securities. not necessary or appropriate in remains any unallocated quantity of the The Exchange believes its current furtherance of the purposes of the Act. Preferenced Order, that remaining proposal is in line with the original C. Self-Regulatory Organization’s quantity will be allocated to any intent behind the allocation Statement on Comments on the Preferred Market Maker quote size methodology for BOX Rule 7300 and Proposed Rule Change Received From exceeding the preferred allocation conforms to the Exchange’s established Members, Participants, or Others percentage. The Exchange believes priority of giving Legging Orders last adding additional language detailing priority. The Exchange continues to The Exchange has neither solicited what happens to the remaining quantity believe that providing priority for single nor received comments on the proposed of Preferred Market Maker quotes option orders or quotes over Legging rule change. promotes transparency and reduces Orders is reasonable as it preserves the III. Date of Effectiveness of the ambiguity within the Exchange’s Rules established priority of single option Proposed Rule Change and Timing for which ultimately benefits and protects orders when executing with Complex Commission Action investors. As noted above, this is not a Orders. In addition, the Exchange notes change to how the Preferenced Order that the Exchange’s Legging Order rule Because the foregoing proposed rule allocation currently operates, but merely explicitly states ‘‘[a] Legging Order is change does not: (i) Significantly affect a clarification of the allocation process. executed only after all other executable the protection of investors or the public Furthermore, the Exchange notes the orders and quotes at the same price are interest; (ii) impose any significant current proposal to treat Legging Orders executed in full.’’ 17 Therefore, the burden on competition; and (iii) become last in priority is in line with another Exchange believes the proposal operative for 30 days after the date of priority allocation scheme within its contributes to harmonizing the the filing, or such shorter time as the Rulebook.13 Specifically, under BOX Exchange’s Rulebook and will help Commission may designate if consistent Price Improvement Period (‘‘PIP’’) Rule avoid investor confusion when with the protection of investors and the 7150, Legging Orders are subject to the executing orders on the Exchange. public interest, it has become effective same priority. BOX Rule 7150 provides Lastly, the proposed non-substantive pursuant to Section 19(b)(3)(A) of the that only after all other orders and addition of the word ‘‘Preferred’’ in Rule Act 18 and Rule 19b–4(f)(6) quotes have been allocated, if there 7300(c)(2) is a more precise description thereunder.19 which better articulates the current 11 See BOX Rule 7240(c)(3) (A Legging Order is allocation process. The Exchange 18 15 U.S.C. 78s(b)(3)(A). executed only after all other executable orders and believes this technical amendment will 19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– quotes at the same price are executed in full). improve the rules readability, promote 4(f)(6)(iii) requires a self-regulatory organization to 12 See Securities Exchange Release No. 34–69419 give the Commission written notice of its intent to (April 19, 2013), 78 FR 24449 (April 25, 2013) (SR– file the proposed rule change, along with a brief 14 BOX–2013–01) (Commission Order Approving BOX See id. description and text of the proposed rule change, Rule Change Relating to Complex Orders). 15 See ISE Rulebook Options 3, Section 7(k)(2) at least five business days prior to the date of filing 13 See BOX Rule 7150(g)(7) (Exchange’s Price and Options 3, Section 10(c)(1)(E), respectively. of the proposed rule change, or such shorter time Improvement Period auction allocates Legging 16 ISE Rulebook Options 3, Section 10(c)(1)(E). as designated by the Commission. The Exchange Orders last in priority). 17 See BOX Rule 7240(c)(3) (Legging Orders). has satisfied this requirement.

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A proposed rule change filed under Paper Comments SECURITIES AND EXCHANGE Rule 19b–4(f)(6) 20 normally does not • COMMISSION become operative prior to 30 days after Send paper comments in triplicate to Secretary, Securities and Exchange the date of filing. However, Rule 19b– [Release No. 34–92256; File No. SR– 21 Commission, 100 F Street NE, 4(f)(6)(iii) permits the Commission to NASDAQ–2021–045] designate a shorter time if such action Washington, DC 20549–1090. is consistent with the protection of All submissions should refer to File Self-Regulatory Organizations; The investors and the public interest. The Number SR–BOX–2021–16. This file Nasdaq Stock Market LLC; Notice of Exchange has asked the Commission to number should be included on the Filing of Proposed Rule Change To waive the 30-day operative delay so that Modify Certain Pricing Limitations for the proposed rule change may become subject line if email is used. To help the Commission process and review your Companies Listing in Connection With operative immediately upon filing. The a Direct Listing Primary Offering Exchange states that waiver of the comments more efficiently, please use only one method. operative delay would be consistent June 24, 2021. with the protection of investors and the The Commission will post all Pursuant to Section 19(b)(1) of the public interest because it would enable comments on the Commission’s internet Securities Exchange Act of 1934 the Exchange to clarify its rule text website (http://www.sec.gov/rules/ (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 without delay while continuing to sro.shtml). Copies of the submission, all notice is hereby given that on June 11, maintain the Exchange’s existing rules subsequent amendments, all written designating Legging Orders for last 2021, The Nasdaq Stock Market LLC statements with respect to the proposed (‘‘Nasdaq’’ or the ‘‘Exchange’’) filed with priority. For this reason, and because rule change that are filed with the the proposed rule change does not raise the Securities and Exchange Commission, and all written Commission (‘‘SEC’’ or ‘‘Commission’’) any novel regulatory issues, the communications relating to the Commission believes that waiving the the proposed rule change as described proposed rule change between the 30-day operative delay is consistent in Items I and II below, which Items Commission and any person, other than with the protection of investors and the have been prepared by the Exchange. those that may be withheld from the public interest. Accordingly, the The Commission is publishing this Commission hereby waives the 30-day public in accordance with the notice to solicit comments on the operative delay and designates the provisions of 5 U.S.C. 552, will be proposed rule change from interested proposed rule change as operative upon available for website viewing and persons. filing.22 printing in the Commission’s Public At any time within 60 days of the Reference Room, on official business I. Self-Regulatory Organization’s filing of the proposed rule change, the days between the hours of 10:00 a.m. Statement of the Terms of Substance of Commission summarily may and 3:00 p.m., located at 100 F Street the Proposed Rule Change temporarily suspend such rule change if NE, Washington, DC 20549. Copies of The Exchange proposes to modify it appears to the Commission that such such filing also will be available for certain pricing limitations for action is necessary or appropriate in the inspection and copying at the principal companies listing in connection with a public interest, for the protection of office of the Exchange. All comments Direct Listing primary offering in which investors, or otherwise in furtherance of received will be posted without change. the company will sell shares itself in the the purposes of the Act. If the Persons submitting comments are opening auction on the first day of Commission takes such action, the cautioned that we do not redact or edit trading on Nasdaq. Commission shall institute proceedings personal identifying information from The text of the proposed rule change to determine whether the proposed rule comment submissions. You should is available on the Exchange’s website at change should be approved or submit only information that you wish https://listingcenter.nasdaq.com/ disapproved. to make available publicly. All rulebook/nasdaq/rules, at the principal submissions should refer to File IV. Solicitation of Comments office of the Exchange, and at the Number SR–BOX–2021–16 and should Interested persons are invited to Commission’s Public Reference Room. submit written data, views and be submitted on or before July 21, 2021. arguments concerning the foregoing, For the Commission, by the Division of II. Self-Regulatory Organization’s including whether the proposed rule Trading and Markets, pursuant to delegated Statement of the Purpose of, and change is consistent with the Act. authority.23 Statutory Basis for, the Proposed Rule Change Comments may be submitted by any of J. Matthew DeLesDernier, the following methods: Assistant Secretary. In its filing with the Commission, the Electronic Comments [FR Doc. 2021–13915 Filed 6–29–21; 8:45 am] Exchange included statements • Use the Commission’s internet BILLING CODE 8011–01–P concerning the purpose of and basis for comment form (http://www.sec.gov/ the proposed rule change and discussed rules/sro.shtml); or any comments it received on the • Send an email to rule-comments@ proposed rule change. The text of these sec.gov. Please include File Number SR– statements may be examined at the BOX–2021–16 on the subject line. places specified in Item IV below. The Exchange has prepared summaries, set 20 17 CFR 240.19b–4(f)(6). forth in sections A, B, and C below, of 21 17 CFR 240.19b–4(f)(6)(iii). the most significant aspects of such 22 For purposes only of waiving the 30-day statements. operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 1 15 U.S.C. 78s(b)(1). 15 U.S.C. 78c(f). 23 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.

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A. Self-Regulatory Organization’s also proposes to make related efficient price discovery of the initial Statement of the Purpose of, and conforming changes. public sale of securities for issuers and Statutory Basis for, the Proposed Rule Listing Rule IM–5315–2 requires that investors. Unlike an IPO where the Change securities listing in connection with a offering price is informed by Direct Listing with a Capital Raise must underwriter engagement with potential 1. Purpose begin trading on Nasdaq following the investors to gauge interest in the Nasdaq recently adopted Listing Rule initial pricing through the Cross, which offering, but ultimately decided through IM–5315–2 to permit a company to list is described in Rules 4120(c)(9) and negotiations between the issuer and the in connection with a primary offering in 4753. Rule 4120(c)(9) requires that in underwriters for the offering, in a Direct which the company will sell shares the case of a Direct Listing with a Listing with a Capital Raise the initial itself in the opening auction on the first Capital Raise, for purposes of releasing sale price is determined based on day of trading on the Exchange (a securities for trading on the first day of market interest and the matching of buy ‘‘Direct Listing with a Capital Raise’’); 3 listing, Nasdaq, in consultation with the and sell orders in an auction open to all created a new order type (the ‘‘CDL financial advisor to the issuer, will market participants. In that regard, in Order’’), which is used during the make the determination of whether the the Approval Order the Commission Nasdaq Halt Cross (the ‘‘Cross’’) for the security is ready to trade. stated that: shares offered by the company in a Currently, in the case of the Direct The opening auction in a Direct Listing Direct Listing with a Capital Raise; and Listing with a Capital Raise, a security with a Capital Raise provides for a different established requirements for is not released for trading by Nasdaq price discovery method for IPOs which may disseminating information, establishing unless the actual price calculated by the reduce the spread between the IPO price and the opening price and initiating trading Cross is at or above the lowest price and subsequent market trades, a potential benefit through the Cross in a Direct Listing at or below the highest price of the price to existing and potential investors. In this with a Capital Raise.4 For a Direct range established by the issuer in its way, the proposed rule change may result in Listing with a Capital Raise, Nasdaq effective registration statement.6 additional investment opportunities while rules currently require that the actual Specifically, under Rule 4120(c)(9)(B) providing companies more options for becoming publicly traded.7 price calculated by the Cross be at or Nasdaq shall release the security for above the lowest price and at or below trading only if: (i) All market orders will A successful initial public offering of the highest price of the price range be executed in the Cross; and (ii) the shares requires sufficient investor established by the issuer in its effective actual price calculated by the Cross interest. If an offering cannot be registration statement (the ‘‘Pricing complies with the Pricing Range completed due to lack of investor Range Limitation’’). Limitation. interest, there is likely to be a Nasdaq now proposes to modify the If there is insufficient buy interest to substantial amount of negative publicity Pricing Range Limitation such that a satisfy the CDL Order and all other for the company and the offering may be Direct Listing with a Capital Raise can market orders, as required by the rule, delayed or cancelled. The Pricing Range be executed in the Cross at a price that or if the actual price calculated by the Limitation imposed on a Direct Listing is at or above the price that is 20% Cross is outside the price range with a Capital Raise (but not on a below the lowest price and at or below established by the issuer in its effective traditional IPO) increases the the price that is 20% above the highest registration statement, the Cross would probability of such a failed offering price of the price range established by not proceed and such security would because the offering cannot proceed the issuer in its effective registration not begin trading. Nasdaq shall without some delay not only for the lack statement.5 In addition, Nasdaq postpone and reschedule the offering of investor interest, but also if investor proposes to modify the Pricing Range only if either or both such conditions interest is greater than the company and Limitation such that a Direct Listing are not met. In such event, because the its advisors anticipated. In the Approval with a Capital Raise can be executed in Cross cannot be conducted, the Order, the Commission noted a frequent the Cross at a price above the price that Exchange would postpone and academic observation of traditional firm is 20% above the highest price of such reschedule the offering and notify commitment underwritten offerings that price range, provided that the company market participants via a Trader Update the IPO price, established through has certified to Nasdaq that such price that the Direct Listing with a Capital negotiation between the underwriters would not materially change the Raise scheduled for that date has been and the issuer, is often lower than the company’s previous disclosure in its cancelled and any orders for that price that the issuer could have effective registration statement. Nasdaq security that have been entered on the obtained for the securities, based on a Exchange would be cancelled back to comparison of the IPO price to the 3 A Direct Listing with a Capital Raise includes the entering firms. closing price on the first day of trading.8 situations where either: (i) Only the company itself Nasdaq believes that the price range in is selling shares in the opening auction on the first Proposed Change to Rule 4120(c)(9) day of trading; or (ii) the company is selling shares a company’s effective registration and selling shareholders may also sell shares in While many companies are interested statement for a Direct Listing with a such opening auction. in alternatives to the traditional IPOs, Capital Raise would similarly be 4 See Securities Exchange Act Release No. 91947 based on conversations with companies (May 19, 2021), 86 FR 28169 (May 25, 2021) (the determined by the company and its ‘‘Approval Order’’). and their advisors Nasdaq believes that advisors and, therefore, there may be 5 References in this proposal to the price range there may be a reluctance to use the instances of offerings where the price established by the issuer in its effective registration existing Direct Listing with a Capital determined by the Nasdaq opening statement are to the price range disclosed in the Raise rules because of concerns about auction will exceed the highest price of prospectus in such registration statement. Separately, as explained in more details below, the Pricing Range Limitation. the price range in the company’s Nasdaq proposes to prescribe that the 20% One potential benefit of a Direct effective registration statement. threshold will be calculated using the high end of Listing with a Capital Raise as an As explained above, under the the price range in the prospectus at the time of alternative to a traditional IPO is that it existing rule a security subject to a effectiveness and may be measured from either the high end (in the case of an increase in the price) could maximize the chances of more or low end (in the case of a decrease in the price) 7 See Approval Order, 86 FR at 28177. of that range. 6 See Rule 4120(c)(9)(B). 8 See Approval Order, footnote 91.

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Direct Listing with a Capital Raise the company’s registration statement.9 limit above which the Cross could not cannot be released for trading by Nasdaq Nasdaq believes such guidance also proceed, based on the company’s if the actual price calculated by the allows deviation above the price range certification, as described above. If there Cross is above the highest price of the beyond the 20% threshold if such is no upside limit, Nasdaq will caution price range established by the issuer in change or deviation does not materially the market participants about the use of its effective registration statement. In change the previous disclosure. market orders explaining that unlike a this case, Nasdaq would have to cancel Accordingly, Nasdaq believes that a limit order a market order can be or postpone the offering until the company listing in connection with a executed at any price determined by the company amends its effective Direct Listing with a Capital Raise can Cross. registration statement. At a minimum, specify the quantity of shares registered, Proposed Conforming Changes to such a delay exposes the company to as permitted by Securities Act Rule 457, Listing Rule IM–5315–2 market risk of changing investor and, when an auction prices outside of sentiment in the event of an adverse the disclosed price range, use a Rule Listing Rule IM–5315–2 allows a market event. In addition, as explained 424(b) prospectus, rather than a post- company that has not previously had its above, the determination of the public effective amendment, when either (i) the common equity securities registered offering price of a traditional IPO is not 20% threshold noted in Rule 430A is under the Act to list its common equity subject to limitations similar to the not exceeded, regardless of the securities on the Nasdaq Global Select Pricing Range Limitation for a Direct materiality or non-materiality of Market at the time of effectiveness of a Listing with a Capital Raise, which, in resulting changes to the registration registration statement pursuant to which Nasdaq’s view, could make companies statement disclosure that would be the company itself will sell shares in the reluctant to use this alternative method contained in the Rule 424(b) prospectus, opening auction on the first day of of going public despite its expected or (ii) when there is a deviation above trading on the Exchange. potential benefits. the price range beyond the 20% Listing Rule IM–5315–2 provides that Accordingly, Nasdaq proposes to threshold noted in Rule 430A if such in determining whether a company modify the Pricing Range Limitation deviation would not materially change listing in connection with a Direct such that in the case of the Direct the previous disclosure, in each case Listing with a Capital Raise satisfies the Listing with a Capital Raise, a security assuming the number of shares issued is Market Value of Unrestricted Publicly 11 shall not be released for trading by not increased from the number of shares Held Shares for initial listing on the Nasdaq unless the actual price at which disclosed in the prospectus. Consistent Nasdaq Global Select Market, the the Cross would occur is at or above the with the Commission’s Staff guidance Exchange will deem such company to price that is 20% below the lowest price on Rule 430A, Nasdaq proposes to have met the applicable requirement if of the price range established by the prescribe that this 20% threshold will the amount of the company’s issuer in its effective registration be calculated using the high end of the Unrestricted Publicly Held Shares statement and at or below the price that price range in the prospectus at the time before the offering along with the is 20% above the highest price of the of effectiveness and may be measured market value of the shares to be sold by price range. In other words, Nasdaq from either the high end (in the case of the company in the Exchange’s opening would release the security for trading, an increase in the price) or low end (in auction in the Direct Listing with a provided all other necessary conditions the case of a decrease in the price) of Capital Raise is at least $110 million (or are satisfied, even if the actual price that range. $100 million, if the company has calculated by the Cross is outside the Finally, given that, as proposed, there stockholders’ equity of at least $110 price range established by the issuer in may be a Direct Listing with a Capital million). its effective registration statement; Raise that could price outside the price Listing Rule IM–5315–2 further provided however that the actual price range of the company’s effective provides that, for this purpose, the cannot be more than 20% below the registration statement and that there Market Value of Unrestricted Publicly lowest price or more than 20% above may be no upside limit above which the Held Shares will be calculated using a the highest price of such range; and the Cross could not proceed, in each price per share equal to the lowest price company specified the quantity of instance of a Direct Listing with a of the price range disclosed by the shares registered, as permitted by Capital Raise, Nasdaq will issue an issuer in its effective registration Securities Act Rule 457, as explained industry wide trader alert 10 to inform statement. Because Nasdaq proposes to allow the below. In addition, there would be no the market participants that the auction opening auction to price up to 20% limitation on releasing the security for could price up to 20% below the lowest below the lowest price of the price range trading at a price above the price that is price of the price range in the established by the issuer in its effective 20% above the highest price of the price company’s effective registration registration statement, Nasdaq proposes range established by the issuer in its statement and specify what that price is. to make a conforming change to Listing effective registration statement if the Nasdaq will also indicate in such trader Rule IM–5315–2 to provide that the company has certified to Nasdaq that alert whether or not there is an upside such offering price would not materially price used to determine such company’s compliance with the Market Value of change the company’s previous 9 Securities Act Rule 457 permits issuers to disclosure in its effective registration register securities either by specifying the quantity Unrestricted Publicly Held Shares is the statement. of shares registered, pursuant to Rule 457(a), or the price per share equal to the price that is Nasdaq believes that this approach is proposed maximum aggregate offering amount. 20% below the lowest price of the price consistent with SEC Rule 430A and Nasdaq expects that companies selling shares range disclosed by the issuer in its through a Direct Listing with a Capital Raise will question 227.03 of the SEC Staff’s register securities by specifying the quantity of effective registration statement as this is Compliance and Disclosure shares registered and not a maximum offering the minimum price at which the Interpretations, which generally allow a amount. See also Compliance & Disclosure company could qualify to be listed. company to price a public offering 20% Interpretation of Securities Act Rules #227.03 at Nasdaq will determine that the https://www.sec.gov/divisions/corpfin/guidance/ outside of the disclosed price range securitiesactrules-interps.htm. company has met the applicable bid without regard to the materiality of the 10 Trader alert is an industry wide subscription changes to the disclosure contained in based free service provided by Nasdaq. 11 See Listing Rules 5005(a)(23) and 5005(a)(45).

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price and market capitalization of the Act,13 in general, and furthers the order a market order can be executed at requirements based on the same per objectives of Section 6(b)(5) of the Act,14 any price determined by the Cross. share price. in particular, in that it is designed to Nasdaq believes that the Commission Any company listing in connection promote just and equitable principles of Staff has already concluded that such with a Direct Listing with a Capital trade, to remove impediments to and pricing is appropriate for a company Raise would continue to be subject to, perfect the mechanism of a free and conducting an initial public offering and required to meet, all other open market and a national market notwithstanding it being outside of the applicable initial listing requirements, system, and, in general to protect range stated in an effective registration including the requirements to have the investors and the public interest. statement, and investors have become applicable number of shareholders and Nasdaq believes that the proposed familiar with this approach at least at least 1,250,000 Unrestricted Publicly amendment to modify the Pricing Range since the Commission Staff last revised Held Shares outstanding at the time of Limitation is consistent with the Compliance and Disclosure initial listing, and the requirement to protection of investors because this Interpretation 227.03 in January 2009.15 have a price per share of at least $4.00 approach is not substantively different Nasdaq believes that the proposed at the time of initial listing.12 from pricing of an IPO where an issuer amendments to Listing Rule IM–5315–2 is permitted to price outside of the price and Rules 4753(a)(3)(A) and 4753(b)(2) Proposed Conforming Changes to Rules range disclosed by the issuer in its to conform these rules to the 4753(a)(3)(A) and 4753(b)(2) effective registration statement in modification of the Pricing Range Nasdaq proposes to amend Rules accordance with the SEC’s Staff Limitation is consistent with the 4753(a)(3)(A) and 4753(b)(2) to conform guidance, as described above. protection of investors. These the requirements for disseminating Specifically, Nasdaq believes that a amendments would simply substitute information and establishing the company listing in connection with a Nasdaq’s reliance on the price equal to opening price through the Cross in a Direct Listing with a Capital Raise can the lowest price of the price range Direct Listing with a Capital Raise to the specify the quantity of shares registered, disclosed by the issuer in its effective proposed amendment to allow the as permitted by Securities Act Rule 457, registration statement to the price that is opening auction to price as much as and, when an auction prices outside of 20% below such lowest price. In the 20% below the lowest price of the price the disclosed price range, use a Rule case of Listing Rule IM–5315–2, a range established by the issuer in its 424(b) prospectus, rather than a post- company listing in connection with a effective registration statement. effective amendment, when either (i) the Direct Listing with a Capital Raise Specifically, Nasdaq proposes 20% threshold noted in Rule 430A is would still need to meet all applicable changes to Rules 4753(a)(3)(A) and not exceeded, regardless of the initial listing requirements based on the 4753(b)(2) to make adjustments to the materiality or non-materiality of price that is 20% below the lowest price calculation of the Current Reference resulting changes to the registration of the price range disclosed by the Price, which is disseminated in the statement disclosure that would be issuer in its effective registration Nasdaq Order Imbalance Indicator, in contained in the Rule 424(b) prospectus, statement. In the case of the Rules the case of a Direct Listing with a or (ii) when there is a deviation above 4753(a)(3)(A) and 4753(b)(2) such price, Capital Raise and for how the price at the price range beyond the 20% which is the minimum price at which which the Cross will execute. These threshold noted in Rule 430A if such the Cross will occur, will serve as the rules currently provide that where there deviation would not materially change fourth tie-breaker where there are are multiple prices that would satisfy the previous disclosure, in each case multiple prices that would satisfy the the conditions for determining a price, assuming the number of shares issued is conditions for determining the auction the fourth tie-breaker for a Direct Listing not increased from the number of shares price, as described above. with a Capital Raise is the price that is disclosed in the prospectus. As a result, Nasdaq also believes that the closest to the lowest price of the price Nasdaq will allow the Cross to take proposal, by eliminating an impediment range disclosed by the issuer in its place as low as 20% below the lowest to companies using a Direct Listing with effective registration statement. price of the price range disclosed by the a Capital Raise, will help removing To conform these rules to the issuer in its effective registration potential impediments to free and open modification of the Pricing Range statement, but no lower, and so this is markets consistent with Section 6(b)(5) Limitation change, as described above, the minimum price at which the of the Exchange Act while also company could be listed. In addition, to Nasdaq proposes to modify the fourth supporting capital formation. better inform investors and market tie-breaker for a Direct Listing with a participants, Nasdaq will issue an B. Self-Regulatory Organization’s Capital Raise, to use the price closest to industry wide trader alert to inform the Statement on Burden on Competition the price that is 20% below the lowest participants that the auction could price The Exchange does not believe that price of the price range disclosed by the up to 20% below the lowest price of the the proposed rule change will impose issuer in its effective registration price range in the company’s effective any burden on competition not statement. registration statement and specify what necessary or appropriate in furtherance 2. Statutory Basis that price is. Nasdaq will also indicate of the purposes of the Act. The The Exchange believes that its in such trader alert whether or not there proposed amendments would not proposal is consistent with Section 6(b) is an upside limit above which the Cross impose any burden on competition, but could not proceed, based on the would rather increase competition. company’s certification, as described 12 See Listing Rules 5315(f)(1), (e)(1) and (2), Nasdaq believes that allowing listing respectively. Rule 5315(f)(1) requires a security to above. If there is no upside limit, venues to improve their rules enhances have: (A) At least 550 total holders and an average Nasdaq will caution the market competition among exchanges. Nasdaq monthly trading volume over the prior 12 months participants about the use of market also believes that this proposed change of at least 1,100,000 shares per month; or (B) at least orders explaining that unlike a limit 2,200 total holders; or (C) a minimum of 450 round will give issuers interested in this lot holders and at least 50% of such round lot holders must each hold unrestricted securities with 13 15 U.S.C. 78f(b). 15 https://www.sec.gov/divisions/corpfin/ a market value of at least $2,500. 14 15 U.S.C. 78f(b)(5). guidance/securitiesactrules-interps.htm.

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pathway to access the capital markets proposed rule change between the comments on the proposed rule change additional flexibility in becoming a Commission and any person, other than from interested persons. public company, and in that way those that may be withheld from the I. Self-Regulatory Organization’s promote competition among service public in accordance with the Statement of the Terms of Substance of provisions of 5 U.S.C. 552, will be providers, such as underwriters and the Proposed Rule Change other advisors, to such companies. available for website viewing and printing in the Commission’s Public The Exchange proposes to amend its C. Self-Regulatory Organization’s Reference Room, 100 F Street NE, rules to add new subparagraph (i)(4) to Statement on Comments on the Washington, DC 20549 on official Rule 7.31E and amend the NYSE Proposed Rule Change Received From business days between the hours of American Equities Price List and Fee Members, Participants, or Others 10:00 a.m. and 3:00 p.m. Copies of such Schedule. The proposed rule change is No written comments were either filing also will be available for available on the Exchange’s website at solicited or received. inspection and copying at the principal www.nyse.com, at the principal office of office of the Exchange. All comments the Exchange, and at the Commission’s III. Date of Effectiveness of the Public Reference Room. Proposed Rule Change and Timing for received will be posted without change. Commission Action Persons submitting comments are II. Self-Regulatory Organization’s cautioned that we do not redact or edit Statement of the Purpose of, and Within 45 days of the date of personal identifying information from publication of this notice in the Federal Statutory Basis for, the Proposed Rule comment submissions. You should Change Register or within such longer period submit only information that you wish up to 90 days (i) as the Commission may to make available publicly. All In its filing with the Commission, the designate if it finds such longer period submissions should refer to File self-regulatory organization included to be appropriate and publishes its Number SR–NASDAQ–2021–045, and statements concerning the purpose of, reasons for so finding or (ii) as to which should be submitted on or before July and basis for, the proposed rule change the Exchange consents, the Commission 21, 2021. and discussed any comments it received will: (a) By order approve or disapprove on the proposed rule change. The text such proposed rule change, or (b) For the Commission, by the Division of of those statements may be examined at institute proceedings to determine Trading and Markets, pursuant to delegated the places specified in Item IV below. authority.16 whether the proposed rule change The Exchange has prepared summaries, should be disapproved. J. Matthew DeLesDernier, set forth in sections A, B, and C below, Assistant Secretary. of the most significant parts of such IV. Solicitation of Comments [FR Doc. 2021–13916 Filed 6–29–21; 8:45 am] statements. Interested persons are invited to BILLING CODE 8011–01–P submit written data, views, and A. Self-Regulatory Organization’s arguments concerning the foregoing, Statement of the Purpose of, and the including whether the proposed rule SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule change is consistent with the Act. COMMISSION Change Comments may be submitted by any of 1. Purpose the following methods: [Release No. 34–92254; File No. SR– The Exchange proposes to amend its Electronic Comments NYSEAMER–2021–31] rules to add new subparagraph (i)(4) to Rule 7.31E (Orders and Modifiers) to • Use the Commission’s internet Self-Regulatory Organizations; NYSE add a description of a Retail Order comment form (http://www.sec.gov/ American LLC; Notice of Filing and modifier and to amend the Price List to rules/sro.shtml); or Immediate Effectiveness of Proposed add a cross-reference to Rule 7.31E(i)(4). • Send an email to rule-comments@ Rule Change To Amend Rule 7.31E To sec.gov. Please include File Number SR– Add a Retail Order Modifier and the Proposed Rule Change NASDAQ–2021–045 on the subject line. NYSE American Equities Price List and The Exchange proposes to amend Paper Comments Fee Schedule To Cross Reference the Rule 7.31E to add new subparagraph Retail Order Modifier 4 • Send paper comments in triplicate (i)(4) to provide for ETP Holders to to Secretary, Securities and Exchange June 24, 2021. designate an order with a retail modifier (‘‘Retail Order’’). An order designated as Commission, 100 F Street NE, Pursuant to Section 19(b)(1) 1 of the Washington, DC 20549–1090. a ‘‘Retail Order’’ pursuant to proposed Securities Exchange Act of 1934 Rule 7.31E(i)(4) would be eligible for the All submissions should refer to File 2 3 (‘‘Act’’) and Rule 19b–4 thereunder, Retail Order Rates specified on the Number SR–NASDAQ–2021–045. This notice is hereby given that on June 21, Exchange’s Price List. file number should be included on the 2021, NYSE American LLC (‘‘NYSE subject line if email is used. To help the American’’ or ‘‘Exchange’’) filed with Proposed Modifier for ‘‘Retail Orders’’ Commission process and review your the Securities and Exchange To define ‘‘Retail Orders,’’ the comments more efficiently, please use Commission (‘‘Commission’’) the Exchange proposes to amend Rule 7.31E only one method. The Commission will proposed rule change as described in (Orders and Modifiers) to add a new post all comments on the Commission’s Items I and II below, which Items have subsection (i)(4), titled ‘‘Retail internet website (http://www.sec.gov/ been prepared by the self-regulatory Modifier’’ to establish requirements for rules/sro.shtml). Copies of the organization. The Commission is Retail Orders on the Exchange. These submission, all subsequent publishing this notice to solicit requirements are based on the amendments, all written statements requirements to enter orders with with respect to the proposed rule 16 17 CFR 200.30–3(a)(12). ‘‘retail’’ modifiers for purposes of rates change that are filed with the 1 15 U.S.C. 78s(b)(1). Commission, and all written 2 15 U.S.C. 78a. 4 See Rules 1.1E(m) (definition of ETP) & (n) communications relating to the 3 17 CFR 240.19b–4. (definition of ETP Holder).

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available for such orders on the Orders that entry of such orders as novel.8 The Exchange believes that the Exchange’s affiliates, New York Stock Retail Orders would be in compliance proposed requirements to submit Exchange, LLC (‘‘NYSE’’) and NYSE with the requirements specified by the attestations and to maintain written Arca, Inc. (‘‘NYSE Arca’’).5 Exchange, and (ii) monitor whether its policies and procedures are not unfairly Proposed Rule 7.31E(i)(4)(A) would broker-dealer customer’s Retail Order discriminatory, because they apply define ‘‘Retail Order’’ as an agency order flow continues to meet the applicable equally to all ETP Holders that wish to or a riskless principal order that meets requirements. Proposed Rule receive the Retail Order Rates. The the criteria of FINRA Rule 5320.03 that 7.31E(i)(4)(E) would specify that an ETP Exchange further believes that the originates from a natural person and is Holder that fails to abide by the proposed addition of a cross-reference submitted to the Exchange by an ETP requirements specified in paragraphs to proposed Rule 7.31E(i)(4) in the Price Holder, provided that no change is (i)(4)(A)–(D) of Rule 7.31E would not be List would remove impediments to and made to the terms of the order with eligible for the Retail Order rates for perfect the mechanism of a free and respect to price or side of market and orders it designates as ‘‘Retail Orders.’’ open market and a national market the order does not originate from a system because it would enhance the Proposed Cross-Reference in the Price trading algorithm or any other clarity and transparency of the Price List List to Rule 7.31E(i)(4) computerized methodology. and reduce any potential customer Proposed Rule 7.31E(i)(4)(B) would The Price List currently contains a confusion. specify that in order for an ETP Holder subheading ‘‘b. Retail Order Rates *,’’ The proposed retail modifier for to access the proposed Retail Order with text at the asterisk as follows: ‘‘See purposes of providing different rates for pricing, the ETP Holder would be section III under ‘General’ at the end of ‘‘Retail Orders’’ is also based in part on required to designate an order as a this Price List for information on the availability of such modifiers on the Retail Order in the form and/or manner designating orders as ‘Retail Orders.’ ’’ Nasdaq Stock Market LLC (‘‘Nasdaq’’) prescribed by the Exchange. The Exchange proposes to amend that and Cboe EDGX Exchange, Inc. Proposed Rule 7.31E(i)(4)(C) would text to also include a reference to Rule (‘‘EDGX’’), which both offer pricing for specify that in order to submit a Retail 7.31E(i)(4). orders designated as ‘‘retail’’ under their Order, an ETP Holder must submit an respective rules, even in the absence of attestation, in a form prescribed by the 2. Statutory Basis a retail price improvement program. For Exchange, that substantially all orders The Exchange believes that the example, Nasdaq defines the term designated as ‘‘Retail Orders’’ would ‘‘Designated Retail Order’’ on its Price meet the requirements set out in the proposed rule change is consistent with 6 List as: definition above. Section 6(b) of the Act, in general, and Proposed Rule 7.31E(i)(4)(D) would furthers the objectives of Sections [A]n agency or riskless principal order that 7 specify that an ETP Holder must have 6(b)(5) of the Act, in particular, because meets the criteria of FINRA Rule 5320.03 and written policies and procedures it is designed to prevent fraudulent and that originates from a natural person and is submitted to Nasdaq by a member that reasonably designed to assure that it manipulative acts and practices, to promote just and equitable principles of designates it pursuant to this section, would only designate orders as ‘‘Retail provided that no change is made to the terms Orders’’ if all requirements of a Retail trade, to foster cooperation and of the order with respect to price or side of Order are met. Such written policies coordination with persons engaged in market and the order does not originate from and procedures must require the ETP regulating, clearing, settling, processing a trading algorithm or any other Holder to (i) exercise due diligence information with respect to, and computerized methodology. An order from a before entering a Retail Order to assure facilitating transactions in securities, to ‘‘natural person’’ can include orders on that entry as a Retail Order is in remove impediments to and perfect the behalf of accounts that are held in a corporate legal form—such as an Individual Retirement compliance with the requirements mechanism of a free and open market and a national market system, and, in Account, Corporation, or a Limited Liability specified by the Exchange, and (ii) Company—that has been established for the monitor whether orders entered as general, to protect investors and the benefit of an individual or group of related Retail Orders meet the applicable public interest and because it is not family members, provided that the order is requirements. If an ETP Holder designed to permit unfair submitted by an individual. Members must represents Retail Orders from another discrimination between customers, submit a signed written attestation, in a form broker-dealer customer, the ETP issuers, brokers, or dealers. prescribed by Nasdaq, that they have Holder’s supervisory procedures must The Exchange believes that the implemented policies and procedures that are reasonably designed to ensure that be reasonably designed to assure that proposed amendment to Rule 7.31E(i) to substantially all orders designated by the the orders it receives from such broker- add a Retail Modifier would remove member as ‘‘Designated Retail Orders’’ dealer customer that it designates as impediments to and perfect the comply with these requirements. Orders may Retail Orders meet the definition of a mechanism of a free and open market be designated on an order by-order basis, or Retail Order. The ETP Holder must (i) and a national market system because by designating all orders on a particular order obtain an annual written representation, the proposed requirements are based on entry port as Designated Retail Orders.9 in a form acceptable to the Exchange, existing requirements for orders from each broker-dealer customer that designated as ‘‘retail’’ on NYSE and 8 As noted above (see supra note 11[sic]), the proposed changes are based not on the Retail sends it orders to be designated as Retail NYSE Arca for purposes of fees and Liquidity Programs available on NYSE and NYSE credits on those exchanges, and Arca, but on the availability of retail fees on those 5 See NYSE Rule 13 regarding Retail Modifiers therefore are not novel. In addition, the exchanges for orders properly designated as ‘‘retail’’ and the NYSE Arca procedures for designating proposed designation, attestation, and orders. See NYSE Rule 13; Securities Exchange Act orders with a retail modifier for purposes of fee Release No. 72253 (May 27, 2014), 79 FR 31353 rates. See Securities Exchange Act Release No. written policies and procedures are also (June 2, 2014) (SR–NYSE–2014–26) (approving the 67540 (July 30, 2012), 77 FR 46539 (August 3, 2012) based on existing procedures for addition of ‘‘retail’’ order modifier at NYSE Rule (SR–NYSEArca–2012–77). These requirements are similarly-defined orders on NYSE and 13(f)); and Securities Exchange Act Release No. distinct from, but related to, the requirements for NYSE Arca, and therefore are not 67540 (July 30, 2012), 77 FR 46539 (August 3, 2012) a ‘‘Retail Order’’ on the Retail Liquidity Programs (SR–NYSEArca–2012–77) (approving the addition available on NYSE and NYSE Arca. See NYSE Rule of ‘‘retail’’ order modifier on NYSE Arca). 7.44 and NYSE Arca Rule 7.44–E. The Exchange 6 15 U.S.C. 78f(b). 9 Nasdaq Equity 7, section 118; see also Cboe does not offer a ‘‘Retail Liquidity Program.’’ 7 15 U.S.C. 78f(b)(5). EDGX Rule 11.21 (defining ‘‘Retail Order’’ and

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Nasdaq does not have a corresponding A proposed rule change filed under • Send an email to rule-comments@ definition of ‘‘Designated Retail Order’’ Rule 19b–4(f)(6) 15 normally does not sec.gov. Please include File Number SR– in its trading rules. become operative prior to 30 days after NYSEAMER–2021–31 on the subject the date of the filing. However, pursuant B. Self-Regulatory Organization’s line. to Rule 19b–4(f)(6)(iii),16 the Statement on Burden on Competition Commission may designate a shorter Paper Comments In accordance with Section 6(b)(8) of time if such action is consistent with the • Send paper comments in triplicate the Act,10 the Exchange believes that the protection of investors and the public to Secretary, Securities and Exchange proposed rule change would not impose interest. The Exchange has asked the Commission, 100 F Street NE, any burden on competition that is not Commission to waive the 30-day Washington, DC 20549–1090. necessary or appropriate in furtherance operative delay so that the proposal may of the purposes of the Act. Instead, the become operative immediately upon All submissions should refer to File Exchange believes that the proposed filing. The Commission notes that the Number SR–NYSEAMER–2021–31. This rule change would promote competition proposal is based on the rules of other file number should be included on the because it is based on the availability of national securities exchanges and finds subject line if email is used. To help the similar ‘‘retail’’ modifiers on NYSE, that the proposal presents no legal or Commission process and review your NYSE Arca, Nasdaq, and EDGX. More 17 novel regulatory questions. For these comments more efficiently, please use specifically, multiple other cash equity reasons, the Commission believes that only one method. The Commission will exchanges offer pricing for orders waiving the 30-day operative delay is post all comments on the Commission’s designated as ‘‘retail’’ orders, even in consistent with the protection of the absence of a retail price internet website (http://www.sec.gov/ investors and the public interest. rules/sro.shtml). Copies of the improvement program on those Accordingly, the Commission waives submission, all subsequent exchanges.11 The Exchange believes that the 30-day operative delay and amendments, all written statements the proposed change could promote designates the proposed rule change with respect to the proposed rule competition between the Exchange and operative upon filing.18 other execution venues, including those change that are filed with the At any time within 60 days of the Commission, and all written that currently offer similar order types filing of such proposed rule change, the communications relating to the and comparable transaction pricing, by Commission summarily may proposed rule change between the encouraging additional orders to be sent temporarily suspend such rule change if to the Exchange for execution. it appears to the Commission that such Commission and any person, other than those that may be withheld from the C. Self-Regulatory Organization’s action is necessary or appropriate in the Statement on Comments on the public interest, for the protection of public in accordance with the Proposed Rule Change Received From investors, or otherwise in furtherance of provisions of 5 U.S.C. 552, will be Members, Participants, or Others the purposes of the Act. If the available for website viewing and Commission takes such action, the printing in the Commission’s Public No written comments were solicited Reference Room, 100 F Street NE, or received with respect to the proposed Commission shall institute proceedings 19 Washington, DC 20549, on official rule change. under Section 19(b)(2)(B) of the Act to determine whether the proposed rule business days between the hours of III. Date of Effectiveness of the change should be approved or 10:00 a.m. and 3:00 p.m. Copies of the Proposed Rule Change and Timing for disapproved. filing also will be available for Commission Action inspection and copying at the principal IV. Solicitation of Comments The Exchange has filed the proposed office of the Exchange. All comments rule change pursuant to Section Interested persons are invited to received will be posted without change. 19(b)(3)(A)(iii) of the Act 12 and Rule submit written data, views, and Persons submitting comments are 19b–4(f)(6) thereunder.13 Because the arguments concerning the foregoing, cautioned that we do not redact or edit proposed rule change: (i) Does not including whether the proposed rule personal identifying information from significantly affect the protection of change is consistent with the Act. comment submissions. You should investors or the public interest; (ii) does Comments may be submitted by any of submit only information that you wish not impose any significant burden on the following methods: to make available publicly. All competition; and (iii) does not become Electronic Comments submissions should refer to File operative prior to 30 days from the date Number SR–NYSEAMER–2021–31 and • on which it was filed, or such shorter Use the Commission’s internet should be submitted on or before July time as the Commission may designate, comment form (http://www.sec.gov/ 21, 2021. if consistent with the protection of rules/sro.shtml); or investors and the public interest, the For the Commission, by the Division of proposed rule change has become Trading and Markets, pursuant to delegated change, along with a brief description and text of 20 effective pursuant to Section 19(b)(3)(A) the proposed rule change, at least five business days authority. of the Act and Rule 19b–4(f)(6)(iii) prior to the date of filing of the proposed rule J. Matthew DeLesDernier, 14 change, or such shorter time as designated by the thereunder. Commission. The Exchange has satisfied this Assistant Secretary. requirement. [FR Doc. 2021–13914 Filed 6–29–21; 8:45 am] 15 establishing attestation requirement to access 17 CFR 240.19b–4(f)(6). BILLING CODE 8011–01–P preferential pricing for such orders). 16 17 CFR 240.19b–4(f)(6)(iii). 10 15 U.S.C. 78f(b)(8). 17 See supra note 5. 11 See supra note 17 [sic]. 18 For purposes only of waiving the operative 12 15 U.S.C. 78s(b)(3)(A)(iii). delay for this proposal, the Commission has 13 17 CFR 240.19b–4(f)(6). considered the proposed rule’s impact on 14 In addition, Rule 19b–4(f)(6)(iii) requires the efficiency, competition, and capital formation. See Exchange to give the Commission written notice of 15 U.S.C. 78c(f). the Exchange’s intent to file the proposed rule 19 15 U.S.C. 78s(b)(2)(B). 20 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE ADDRESSES: The Commission: Investment Transactions with each COMMISSION [email protected]. Applicants: other. ‘‘Co-Investment Transaction’’ [email protected]. means any transaction in which a [Investment Company Act Release No. FOR FURTHER INFORMATION CONTACT: Regulated Fund (or its Wholly-Owned 34318; File No. 812–15176] Asen Parachkevov, Senior Counsel, at Investment Sub (as defined below)) (202) 551–6908 or Lisa Reid Ragen, participated together with one or more Investcorp Credit Management BDC, Branch Chief, at (202) 551–6825 Affiliated Funds and/or one or more Inc., et al. (Division of Investment Management, other Regulated Funds in reliance on June 24, 2021. Chief Counsel’s Office). the Order. ‘‘Potential Co-Investment Transaction’’ means any investment AGENCY: Securities and Exchange SUPPLEMENTARY INFORMATION: The opportunity in which a Regulated Fund Commission (‘‘Commission’’). following is a summary of the application. The complete application (or its Wholly-Owned Investment Sub) ACTION: Notice. may be obtained via the Commission’s could not participate together with one Notice of application for an order website by searching for the file or more Affiliated Funds and/or one or number, or for an applicant using the more other Regulated Funds without under sections 17(d) and 57(i) of the 3 Investment Company Act of 1940 (the Company name box, at http:// obtaining and relying on the Order. ‘‘Act’’) and rule 17d–1 under the Act to www.sec.gov/search/search.htm or by 2. The Order sought by the applicants 4 permit certain joint transactions calling (202) 551–8090. would supersede a prior order (‘‘Prior Order’’) with the result that no person otherwise prohibited by sections 17(d) Introduction and 57(a)(4) of the Act and rule 17d–1 will continue to rely on the Prior Order 1. The applicants request an order of under the Act. if the Order is granted. the Commission under sections 17(d) SUMMARY OF APPLICATION: Applicants and 57(i) and rule 17d–1 thereunder Applicants request an order to permit certain (the ‘‘Order’’) to permit, subject to the 3. The Existing Regulated Fund is an business development companies terms and conditions set forth in the externally-managed, non-diversified, (‘‘BDCs’’) and closed-end management application (the ‘‘Conditions’’), a closed-end management investment investment companies to co-invest in 1 Regulated Fund and one or more other company incorporated in Maryland that portfolio companies with each other and Regulated Funds and/or one or more has elected to be regulated as a BDC with certain affiliated investment funds 2 Affiliated Funds to enter into Co- under the Act.5 The Board 6 of the and accounts. 1 APPLICANTS: InvestCorp Credit ‘‘Regulated Funds’’ means the Existing obligation funds (‘‘CLOs’’). Such CLOs would be Management BDC, Inc. (the ‘‘Existing Regulated Fund, the Future Regulated Funds and investment companies but for the exception Regulated Fund’’), CM Finance SPV Ltd. the BDC Downstream Funds (defined below). provided in section 3(c)(7) of the Act or their ability ‘‘Future Regulated Fund’’ means a closed-end to rely on rule 3a–7 of the Act. During the (‘‘CMSPV1), CM Finance SPV LLC management investment company (a) that is investment period of a CLO, the CLO may engage (‘‘CMSPV2’’), CM Investment Partners registered under the Act or has elected to be in certain transactions customary in CLO regulated as a BDC, (b) whose investment adviser LLC (‘‘CMIP’’), Investcorp Credit formations with another Affiliated Fund on a (and sub-adviser(s), if any) are an Adviser, and (c) secondary basis at fair market value. For purposes Management US LLC (‘‘ICMUS’’), that intends to participate in the co-investment of the Order, any securities that were acquired by program (‘‘Co-Investment Program’’). Investcorp Credit Management EU an Affiliated Fund in a particular Co-Investment (‘‘ICMEU’’, and together with ICMUS, ‘‘Adviser’’ means the Existing Advisers and any Transaction that are then transferred in such the ‘‘Existing Advisers’’), and each of future investment adviser that (i) controls, is customary transactions to an Affiliated Fund that is controlled by, or is under common control with or will become a CLO (an ‘‘Affiliated Fund CLO’’) the Existing Affiliated Funds set forth Investcorp Holdings B.S.C (‘‘Investcorp Holdings’’), will be treated as if the Affiliated Fund CLO (ii) (a) is registered as an investment adviser under on Exhibit B on the application. acquired such securities in the Co-Investment the Investment Advisers Act of 1940 (‘‘Advisers FILING DATES: Transaction. For the avoidance of doubt, any such The application was filed Act’’) or (b) is a relying adviser of an investment transfer from an Affiliated Fund to an Affiliated on October 30, 2020, and amended on adviser that is registered under the Advisers Act, Fund CLO will be treated as a Disposition and and that controls, is controlled by, or is under February 16, 2021, and June 7, 2021. completed pursuant to terms and conditions of the common control with Investcorp Holdings, or (c) is HEARING OR NOTIFICATION OF HEARING: application, though Applicants note that the An an exempt reporting adviser pursuant to rule Regulated Funds would be prohibited from order granting the requested relief will 203(m) of the Advisers Act (‘‘Exempt Reporting be issued unless the Commission orders Adviser’’), and (iii) is not a Regulated Fund or a participating in such Disposition by section 17(a)(2) subsidiary of a Regulated Fund. or section 57(a)(2) of the Act, as applicable. The a hearing. Interested persons may participation by any Affiliated Fund CLO in any 2 ‘‘Affiliated Fund’’ means any Existing Affiliated request a hearing by emailing the such Co-Investment Transaction will remain subject Fund, any Investcorp Proprietary Account (as to the Order. Commission’s Secretary at Secretarys- defined below) and any entity (a) whose investment 3 [email protected] and serving applicants adviser (and sub-adviser(s), if any) are Advisers, (b) All existing entities that currently intend to rely on the Order have been named as applicants and with a copy of the request by email. that either (i) would be an investment company but for section 3(c)(1), 3(c)(5)(C) or 3(c)(7) of the Act or any existing or future entities that may rely on the Hearing requests should be received by (ii) relies on rule 3a–7 under the Act, (c) that is not Order in the future will comply with its terms and the Commission by 5:30 p.m. on July 19, a BDC Downstream Fund, and (d) that intends to Conditions set forth in the application. 2021, and should be accompanied by participate in the Co-Investment Program. 4 CM Finance Inc., et al. (File No. 812–14850) ‘‘BDC Downstream Fund’’ means, with respect to Investment Company Act Rel. Nos. 33377 (February proof of service on the applicants, in the 19, 2019) (notice) and 33401 (March 19, 2019) form of an affidavit, or, for lawyers, a any Regulated Fund that is a business development company (‘‘BDC’’), an entity (i) that the BDC (order). certificate of service. Pursuant to rule 0– directly or indirectly controls, (ii) that is not 5 Section 2(a)(48) defines a BDC to be any closed- 5 under the Act, hearing requests should controlled by any person other than the BDC end investment company that operates for the state the nature of the writer’s interest, (except a person that indirectly controls the entity purpose of making investments in securities solely because it controls the BDC), (iii) that would described in section 55(a)(1) through 55(a)(3) and any facts bearing upon the desirability be an investment company but for section 3(c)(1) or makes available significant managerial assistance of a hearing on the matter, the reason for 3(c)(7) of the Act, (iv) whose investment adviser with respect to the issuers of such securities. the request, and the issues contested. (and sub-adviser(s), if any) are an Adviser, (v) that 6 ‘‘Board’’ means (i) with respect to a Regulated Persons who wish to be notified of a is not a Wholly-Owned Investment Sub and (vi) that Fund other than a BDC Downstream Fund, the intends to participate in the Co-Investment Program board of directors (or the equivalent) of the hearing may request notification by (defined below). Regulated Fund and (ii) with respect to a BDC emailing the Commission’s Secretary at Affiliated Funds may include funds that are Downstream Fund, the Independent Party of the [email protected]. ultimately structured as collateralized loan BDC Downstream Fund.

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Existing Regulated Fund currently prohibited from investing in a Co- any other Advisers considering the consist of four directors, three of whom Investment Transaction with a opportunity for their clients. In are Independent Directors.7 Regulated Fund (other than its parent) particular, consistent with Condition 1, 4. CMIP is organized as a limited or any Affiliated Fund because it would if a Potential Co-Investment Transaction liability company under the laws of the be a company controlled by its parent falls within the then-current Objectives state of Delaware. CMIP is controlled by Regulated Fund for purposes of section and Strategies 9 and any Board- ICMUS. CMIP has registered as an 57(a)(4) and rule 17d–1. Applicants Established Criteria 10 of a Regulated investment adviser with the request that each Wholly-Owned Fund, the policies and procedures will Commission pursuant to section 203 of Investment Sub be permitted to require that the Adviser to such the Advisers Act. ICMUS is organized as participate in Co-Investment Regulated Fund receive sufficient a limited liability company under the Transactions in lieu of the Regulated information to allow such Adviser’s laws of the state of Delaware. ICMUS is Fund that owns it and that the Wholly- investment committee to make its controlled by Investcorp International Owned Investment Sub’s participation independent determination and Holdings Inc. ICMUS has registered in any such transaction be treated, for recommendations under the Conditions. with the Commission pursuant to purposes of the Order, as though the The Adviser to each applicable section 203 of the Advisers Act. ICMEU parent Regulated Fund were Regulated Fund will then make an is organized as an English private participating directly. Applicants state independent determination of the limited company under the laws of the that each of CMSPV1 and CMSPV2 is a appropriateness of the investment for United Kingdom and is an Exempt Wholly-Owned Investment Sub of the the Regulated Fund in light of the Reporting Adviser. ICMEU is controlled Existing Regulated Fund, whose sole Regulated Fund’s then-current by Investcorp S.A. business purpose is to hold one or more circumstances. If the Adviser to a 5. Applicants represent that each investments on behalf of the Existing Regulated Fund deems the Regulated Existing Affiliated Fund is a separate Regulated Fund. Applicants further Fund’s participation in such Potential and distinct legal entity and each would state that CMSPV1 and CMSPV2 are Co-Investment Transaction to be be an investment company but for each a separate and distinct legal entity. appropriate, then it will formulate a section 3(c)(7) of the Act. Applicants state that CMSPV1 and recommendation regarding the proposed 6. Any Adviser, in a principal CMSPV2 are each exempt from order amount for the Regulated Fund. capacity, and any direct or indirect, registration under section 3(c)(7) of the 10. Applicants state that, for each wholly- or majority-owned subsidiary of Act. Regulated Fund and Affiliated Fund Investcorp Holdings or any Adviser, whose Adviser recommends Applicants’ Representations may hold various financial assets in a participating in a Potential Co- principal capacity (the ‘‘Investcorp A. Allocation Process Proprietary Accounts’’). 9 ‘‘Objectives and Strategies’’ means (i) with 7. Applicants state that a Regulated 8. Applicants represent that the respect to any Regulated Fund other than a BDC Fund may, from time to time, form one Advisers have established processes for Downstream Fund, its investment objectives and or more Wholly-Owned Investment ensuring compliance with the Prior strategies, as described in its most current 8 Order and for allocating initial registration statement on Form N–2, other current Subs. Such a subsidiary may be filings with the Commission under the Securities investment opportunities, opportunities Act of 1933 (‘‘Securities Act’’) or under the ‘‘Independent Party’’ means, with respect to a for subsequent investments in an issuer Securities Exchange Act of 1934, as amended, and BDC Downstream Fund, (i) if the BDC Downstream and dispositions of securities holdings its most current report to stockholders, and (ii) with Fund has a board of directors (or the equivalent), reasonably designed to treat all clients respect to any BDC Downstream Fund, those the board or (ii) if the BDC Downstream Fund does investment objectives and strategies described in its not have a board of directors (or the equivalent), a fairly and equitably. Further, applicants disclosure documents (including private placement transaction committee or advisory committee of the represent that these processes will be memoranda and reports to equity holders) and BDC Downstream Fund. extended and modified in a manner organizational documents (including operating 7 ‘‘Independent Director’’ means a member of the reasonably designed to ensure that the agreements). Board of any relevant entity who is not an 10 ‘‘Board-Established Criteria’’ means criteria ‘‘interested person’’ as defined in section 2(a)(19) of additional transactions permitted under that the Board of a Regulated Fund may establish the Act. No Independent Director of a Regulated the Order will both (i) be fair and from time to time to describe the characteristics of Fund (including any non-interested member of an equitable to the Regulated Funds and Potential Co-Investment Transactions regarding Independent Party) will have a financial interest in the Affiliated Funds and (ii) comply which the Adviser to the Regulated Fund should be any Co-Investment Transaction, other than notified under Condition 1. The Board-Established indirectly through share ownership in one of the with the Conditions. Criteria will be consistent with the Regulated Regulated Funds. 9. Opportunities for Potential Co- Fund’s Objectives and Strategies. If no Board- 8 ‘‘Wholly-Owned Investment Sub’’ means an Investment Transactions may arise Established Criteria are in effect, then the Regulated entity (i) that is wholly-owned by a Regulated Fund when investment advisory personnel of Fund’s Adviser will be notified of all Potential Co- (with such Regulated Fund at all times holding, Investment Transactions that fall within the beneficially and of record, 95% or more of the an Adviser becomes aware of Regulated Fund’s then-current Objectives and voting and economic interests); (ii) whose sole investment opportunities that may be Strategies. Board-Established Criteria will be business purpose is to hold one or more appropriate for a Regulated Fund and objective and testable, meaning that they will be investments on behalf of such Regulated Fund (and one or more other Regulated Funds and/ based on observable information, such as industry/ in the case of an SBIC Subsidiary, maintain a sector of the issuer, minimum EBITDA of the issuer, license under the Small Business Investment Act of or one or more Affiliated Funds. If the asset class of the investment opportunity or 1958 (‘‘SBA Act’’) and issue debentures guaranteed requested Order is granted, the Advisers required commitment size, and not on by the Small Business Administration (‘‘SBA’’)); will establish, maintain and implement characteristics that involve a discretionary (iii) with respect to which such Regulated Fund’s policies and procedures reasonably assessment. The Adviser to the Regulated Fund may Board has the sole authority to make all from time to time recommend criteria for the determinations with respect to the entity’s designed to ensure that, when such Board’s consideration, but Board-Established participation under the Conditions; and (iv) that (A) opportunities arise, the Advisers to the Criteria will only become effective if approved by would be an investment company but for section relevant Regulated Funds are promptly a majority of the Independent Directors. The 3(c)(1), 3(c)(5)(C), or 3(c)(7) of the Act, or (B) that notified and receive the same Independent Directors of a Regulated Fund may at qualifies as a real estate investment trust within the any time rescind, suspend or qualify their approval meaning of section 856 of the Internal Revenue information about the opportunity as of any Board-Established Criteria, though applicants Code because substantially all of its assets would anticipate that, under normal circumstances, the consist of real properties. ‘‘SBIC Subsidiary’’ means the SBA to operate under the SBA Act as a small Board would not modify these criteria more often a Wholly-Owned Investment Sub that is licensed by business investment company. than quarterly.

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Investment Transaction, the Adviser’s circumstances applicable to the requirements of Standard Review investment committee will approve an Regulated Funds’ or the Affiliated Follow-Ons. investment amount. Prior to the Funds’ consideration of the opportunity, 14. A Regulated Fund would be External Submission (as defined below), change, the participants will be permitted to invest in Standard Review each proposed order amount may be permitted to submit revised Internal Follow-Ons either with the approval of reviewed and adjusted, in accordance Orders in accordance with written the Required Majority under Condition with the applicable Advisers’ written allocation policies and procedures that 8(c) or without Board approval under allocation policies and procedures, by the Advisers will establish, implement Condition 8(b) if it is (i) a Pro Rata the applicable Adviser’s investment and maintain.14 Follow-On Investment 17 or (ii) a Non- committee.11 The order of a Regulated Negotiated Follow-On Investment.18 Fund or Affiliated Fund resulting from B. Follow-On Investments Applicants believe that these Pro Rata this process is referred to as its ‘‘Internal 12. Applicants state that from time to and Non-Negotiated Follow-On Order.’’ The Internal Order will be time the Regulated Funds and Affiliated Investments do not present a significant submitted for approval by the Required Funds may have opportunities to make opportunity for overreaching on the part Majority of any participating Regulated Follow-On Investments 15 in an issuer in of any Adviser and thus do not warrant Funds in accordance with the which a Regulated Fund and one or the time or the attention of the Board. Conditions.12 more other Regulated Funds and/or Pro Rata Follow-On Investments and 11. If the aggregate Internal Orders for Affiliated Funds previously have Non-Negotiated Follow-On Investments a Potential Co-Investment Transaction invested. remain subject to the Board’s periodic do not exceed the size of the investment 13. Applicants propose that Follow- review in accordance with Condition opportunity immediately prior to the On Investments would be divided into 10. submission of the orders to the two categories depending on whether C. Dispositions underwriter, broker, dealer or issuer, as the prior investment was a Co- applicable (the ‘‘External Submission’’), Investment Transaction or a Pre- 15. Applicants propose that 19 then each Internal Order will be Boarding Investment.16 If the Regulated Dispositions would be divided into fulfilled as placed. If, on the other hand, Funds and Affiliated Funds had two categories. If the Regulated Funds the aggregate Internal Orders for a previously participated in a Co- and Affiliated Funds holding Potential Co-Investment Transaction Investment Transaction with respect to investments in the issuer had previously exceed the size of the investment the issuer, then the terms and approval participated in a Co-Investment opportunity immediately prior to the of the Follow-On Investment would be Transaction with respect to the issuer, External Submission, then the allocation subject to the Standard Review Follow- then the terms and approval of the of the opportunity will be made pro rata Ons described in Condition 8. If the Disposition would be subject to the Standard Review Dispositions described on the basis of the size of the Internal Regulated Funds and Affiliated Funds 13 in Condition 6. If the Regulated Funds Orders. If, subsequent to such External have not previously participated in a and Affiliated Funds have not Submission, the size of the opportunity Co-Investment Transaction with respect previously participated in a Co- is increased or decreased, or if the terms to the issuer but hold a Pre-Boarding Investment Transaction with respect to of such opportunity, or the facts and Investment, then the terms and approval the issuer but hold a Pre-Boarding of the Follow-On Investment would be 11 Investment, then the terms and approval The reason for any such adjustment to a subject to the Enhanced-Review Follow- proposed order amount will be documented in of the Disposition would be subject to Ons described in Condition 9. All writing and preserved in the records of each the Enhanced Review Dispositions Adviser. Enhanced Review Follow-Ons require described in Condition 7. Subsequent 12 ‘‘Required Majority’’ means a required the approval of the Required Majority. majority, as defined in section 57(o) of the Act. In For a given issuer, the participating the case of a Regulated Fund that is a registered 17 A ‘‘Pro Rata Follow-On Investment’’ is a closed-end fund, the Board members that make up Regulated Funds and Affiliated Funds Follow-On Investment (i) in which the participation the Required Majority will be determined as if the would need to comply with the of each Affiliated Fund and each Regulated Fund Regulated Fund were a BDC subject to section 57(o). requirements of Enhanced-Review is proportionate to its outstanding investments in In the case of a BDC Downstream Fund with a board Follow-Ons only for the first Co- the issuer or security, as appropriate, immediately of directors (or the equivalent), the members that preceding the Follow-On Investment, and (ii) in the make up the Required Majority will be determined Investment Transaction. Subsequent Co- case of a Regulated Fund, a majority of the Board as if the BDC Downstream Fund were a BDC subject Investment Transactions with respect to has approved the Regulated Fund’s participation in to section 57(o). In the case of a BDC Downstream the issuer would be governed by the the pro rata Follow-On Investments as being in the Fund with a transaction committee or advisory best interests of the Regulated Fund. The Regulated committee, the committee members that make up Fund’s Board may refuse to approve, or at any time the Required Majority will be determined as if the 14 The Board of the Regulated Fund will then rescind, suspend or qualify, its approval of Pro Rata BDC Downstream Fund were a BDC subject to either approve or disapprove of the investment Follow-On Investments, in which case all section 57(o) and as if the committee members were opportunity in accordance with Condition 2, 6, 7, subsequent Follow-On Investments will be directors of the fund. 8 or 9, as applicable. submitted to the Regulated Fund’s Eligible Directors 13 The Advisers will maintain records of all 15 ‘‘Follow-On Investment’’ means an additional in accordance with Condition 8(c). proposed order amounts, Internal Orders and investment in the same issuer, including, but not 18 A ‘‘Non-Negotiated Follow-On Investment’’ is a External Submissions in conjunction with Potential limited to, through the exercise of warrants, Follow-On Investment in which a Regulated Fund Co-Investment Transactions. Each applicable conversion privileges or other rights to purchase participates together with one or more Affiliated Adviser will provide the Eligible Directors with securities of the issuer. Funds and/or one or more other Regulated Funds information concerning the Affiliated Funds’ and 16 ‘‘Pre-Boarding Investments’’ are investments in (i) in which the only term negotiated by or on behalf Regulated Funds’ order sizes to assist the Eligible an issuer held by a Regulated Fund as well as one of the funds is price and (ii) with respect to which, Directors with their review of the applicable or more Affiliated Funds and/or one or more other if the transaction were considered on its own, the Regulated Fund’s investments for compliance with Regulated Funds that were acquired prior to funds would be entitled to rely on one of the JT No- the Conditions. participating in any Co-Investment Transaction: (i) Action Letters. ‘‘Eligible Directors’’ means, with respect to a In transactions in which the only term negotiated ‘‘JT No-Action Letters’’ means SMC Capital, Inc., Regulated Fund and a Potential Co-Investment by or on behalf of such funds was price in reliance SEC No-Action Letter (pub. avail. Sept. 5, 1995) and Transaction, the members of the Regulated Fund’s on one of the JT No-Action Letters (defined below); Massachusetts Mutual Life Insurance Company, Board eligible to vote on that Potential Co- or (ii) in transactions occurring at least 90 days SEC No-Action Letter (pub. avail. June 7, 2000). Investment Transaction under section 57(o) of the apart and without coordination between the 19 ‘‘Disposition’’ means the sale, exchange or Act (treating any registered investment company or Regulated Fund and any Affiliated Fund or other other disposition of an interest in a security of an series thereof as a BDC for this purpose). Regulated Fund. issuer.

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Dispositions with respect to the same registration rights and any other rights, the extent that the Affiliated Funds and issuer would be governed by Condition so that none of them receives terms the Regulated Funds participating in 6 under the Standard Review more favorable than any other. such transactions fall within the Dispositions.20 However, the settlement date for an category of persons described by rule 16. A Regulated Fund may participate Affiliated Fund in a Co-Investment 17d–1 and/or section 57(b), as modified in a Standard Review Disposition either Transaction may occur up to ten by rule 57b–1 thereunder, as applicable, with the approval of the Required business days after the settlement date vis-a`-vis each participating Regulated Majority under Condition 6(d) or for the Regulated Fund, and vice versa. Fund. Each of the participating without Board approval under Nevertheless, in all cases, (i) the date on Regulated Funds and Affiliated Funds Condition 6(c) if (i) the Disposition is a which the commitment of the Affiliated may be deemed to be affiliated persons Pro Rata Disposition 21 or (ii) the Funds and Regulated Funds is made vis-a`-vis a Regulated Fund within the securities are Tradable Securities 22 and will be the same even where the meaning of section 2(a)(3) by reason of the Disposition meets the other settlement date is not and (ii) the common control because (i) an Adviser requirements of Condition 6(c)(ii). Pro earliest settlement date and the latest or Advisers manage each of the Existing Rata Dispositions and Dispositions of a settlement date of any Affiliated Fund Affiliated Funds and may be deemed to Tradable Security remain subject to the or Regulated Fund participating in the control the Existing Affiliated Funds, Board’s periodic review in accordance transaction will occur within ten and an Adviser will advise (and sub- with Condition 10. business days of each other. advise, if applicable) and will control D. Delayed Settlement E. Holders any future Affiliated Fund, (ii) an Adviser serves or will serve as 17. Applicants represent that under 18. Under Condition 15, if an Adviser, investment adviser (and sub-adviser, if the terms and Conditions of the its principals, or any person controlling, applicable) to each of the Regulated application, all Regulated Funds and controlled by, or under common control Funds and may be deemed to control Affiliated Funds participating in a Co- with the Adviser or its principals, and the Regulated Funds, (iii) each BDC Investment Transaction will invest at the Affiliated Funds (collectively, the Downstream Fund will be deemed to be the same time, for the same price and ‘‘Holders’’) own in the aggregate more controlled by its BDC parent and/or its with the same terms, conditions, class, than 25 percent of the outstanding BDC parent’s Adviser; and (iv) the voting shares of a Regulated Fund (the Advisers are under common control. 20 However, with respect to an issuer, if a ‘‘Shares’’), then the Holders will vote Thus, each Regulated Fund and each Regulated Fund’s first Co-Investment Transaction is such Shares as required under the an Enhanced Review Disposition, and the Regulated Affiliated Fund could be deemed to be Fund does not dispose of its entire position in the Condition. a person related to a Regulated Fund, or Enhanced Review Disposition, then before such Regulated Fund may complete its first Standard Applicants’ Legal Analysis BDC Downstream Fund, in a manner Review Follow-On in such issuer, the Eligible 1. Section 17(d) of the Act and rule described by section 57(b) and related to Directors must review the proposed Follow-On 17d–1 under the Act prohibit the other Regulated Funds in a manner Investment not only on a stand-alone basis but also described by rule 17d–1; and therefore in relation to the total economic exposure in such participation by a registered investment issuer (i.e., in combination with the portion of the company and an affiliated person in any the prohibitions of rule 17d–1 and Pre-Boarding Investment not disposed of in the ‘‘joint enterprise or other joint section 57(a)(4) would apply Enhanced Review Disposition), and the other terms arrangement or profit-sharing plan,’’ as respectively to prohibit the Affiliated of the investments. This additional review would be Funds from participating in Co- required because such findings would not have defined in the rule, without prior been required in connection with the prior approval by the Commission by order Investment Transactions with the Enhanced Review Disposition, but they would have upon application. Section 17(d) of the Regulated Funds. Further, because the been required had the first Co-Investment Act and rule 17d–1 under the Act are BDC Downstream Funds and Wholly- Transaction been an Enhanced Review Follow-On. Owned Investment Subs are controlled 21 A ‘‘Pro Rata Disposition’’ is a Disposition (i) in applicable to Regulated Funds that are which the participation of each Affiliated Fund and registered closed-end investment by the Regulated Funds, the BDC each Regulated Fund is proportionate to its companies. Downstream Funds and Wholly-Owned outstanding investment in the security subject to 2. Similarly, with regard to BDCs, Investment Subs are subject to section Disposition immediately preceding the Disposition; 57(a)(4) (or section 17(d) in the case of and (ii) in the case of a Regulated Fund, a majority section 57(a)(4) of the Act generally of the Board has approved the Regulated Fund’s prohibits certain persons specified in Wholly-Owned Investment Subs participation in pro rata Dispositions as being in the section 57(b) from participating in joint controlled by Regulated Funds that are best interests of the Regulated Fund. The Regulated transactions with the BDC or a company registered under the Act) and thus also Fund’s Board may refuse to approve, or at any time subject to the provisions of rule 17d–1. rescind, suspend or qualify, its approval of Pro Rata controlled by the BDC in contravention Dispositions, in which case all subsequent of rules as prescribed by the In addition, because the Investcorp Dispositions will be submitted to the Regulated Commission. Section 57(i) of the Act Proprietary Accounts will be controlled Fund’s Eligible Directors. provides that, until the Commission by Investcorp Holdings, which is the 22 ‘‘Tradable Security’’ means a security that parent company of the Existing Advisers meets the following criteria at the time of prescribes rules under section 57(a)(4), Disposition: (i) It trades on a national securities the Commission’s rules under section and, therefore, may be under common exchange or designated offshore securities market 17(d) of the Act applicable to registered control with the Existing Regulated as defined in rule 902(b) under the Securities Act; closed-end investment companies will Fund, the Advisers, and any Future (ii) it is not subject to restrictive agreements with Regulated Funds, the Investcorp the issuer or other security holders; and (iii) it be deemed to apply to transactions trades with sufficient volume and liquidity subject to section 57(a)(4). Because the Proprietary Accounts could be deemed (findings as to which are documented by the Commission has not adopted any rules to be persons related to the Regulated Advisers to any Regulated Funds holding under section 57(a)(4), rule 17d–1 also Funds (or a company controlled by the investments in the issuer and retained for the life Regulated Funds) in a manner described of the Regulated Fund) to allow each Regulated applies to joint transactions with Fund to dispose of its entire position remaining Regulated Funds that are BDCs. by section 17(d) or section 57(b) and after the proposed Disposition within a short period 3. Co-Investment Transactions are also prohibited from participating in the of time not exceeding 30 days at approximately the Co-Investment Program. value (as defined by section 2(a)(41) of the Act) at prohibited by either or both of rule 17d– which the Regulated Fund has valued the 1 and section 57(a)(4) without a prior 4. In passing upon applications under investment. exemptive order of the Commission to rule 17d–1, the Commission considers

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whether the company’s participation in will then determine an appropriate level than the settlement date for the the joint transaction is consistent with of investment for the Regulated Fund. Regulated Fund by no more than ten the provisions, policies, and purposes of (b) If the aggregate amount business days or earlier than the the Act and the extent to which such recommended by the Advisers to be settlement date for the Regulated Fund participation is on a basis different from invested in the Potential Co-Investment by no more than ten business days, in or less advantageous than that of other Transaction by the participating either case, so long as: (x) The date on participants. Regulated Funds and any participating which the commitment of the Affiliated 5. Applicants state that in the absence Affiliated Funds, collectively, exceeds Funds and Regulated Funds is made is of the requested relief, in many the amount of the investment the same; and (y) the earliest settlement circumstances the Regulated Funds opportunity, the investment opportunity date and the latest settlement date of would be limited in their ability to will be allocated among them pro rata any Affiliated Fund or Regulated Fund participate in attractive and appropriate based on the size of the Internal Orders, participating in the transaction will investment opportunities. Applicants as described in section III.A.1.b. of the occur within ten business days of each state that, as required by rule 17d–1(b), application. Each Adviser to a other; or the Conditions ensure that the terms on participating Regulated Fund will (B) any other Regulated Fund or which Co-Investment Transactions may promptly notify and provide the Eligible Affiliated Fund, but not the Regulated be made will be consistent with the Directors with information concerning Fund itself, gains the right to nominate participation of the Regulated Funds the Affiliated Funds’ and Regulated a director for election to a portfolio being on a basis that it is neither Funds’ order sizes to assist the Eligible company’s board of directors, the right different from nor less advantageous Directors with their review of the to have a board observer or any similar than other participants, thus protecting applicable Regulated Fund’s right to participate in the governance or the equity holders of any participant investments for compliance with these management of the portfolio company from being disadvantaged. Applicants Conditions. so long as: (x) The Eligible Directors will further state that the Conditions ensure (c) After making the determinations have the right to ratify the selection of that all Co-Investment Transactions are required in Condition 1(b) above, each such director or board observer, if any; reasonable and fair to the Regulated Adviser to a participating Regulated (y) the Adviser agrees to, and does, Funds and their shareholders and do Fund will distribute written information provide periodic reports to the not involve overreaching by any person concerning the Potential Co-Investment Regulated Fund’s Board with respect to concerned, including the Advisers. Transaction (including the amount the actions of such director or the Applicants state that the Regulated proposed to be invested by each information received by such board Funds’ participation in the Co- participating Regulated Fund and each observer or obtained through the Investment Transactions in accordance participating Affiliated Fund) to the exercise of any similar right to with the Conditions will be consistent Eligible Directors of its participating participate in the governance or management of the portfolio company; with the provisions, policies, and Regulated Fund(s) for their and (z) any fees or other compensation purposes of the Act and would be done consideration. A Regulated Fund will that any other Regulated Fund or in a manner that is not different from, enter into a Co-Investment Transaction Affiliated Fund or any affiliated person or less advantageous than, that of other with one or more other Regulated Funds of any other Regulated Fund or participants. or Affiliated Funds only if, prior to the Regulated Fund’s participation in the Affiliated Fund receives in connection Applicants’ Conditions Potential Co-Investment Transaction, a with the right of one or more Regulated Funds or Affiliated Funds to nominate Applicants agree that the Order will Required Majority concludes that: a director or appoint a board observer or be subject to the following Conditions: (i) The terms of the transaction, otherwise to participate in the 1. Identification and Referral of including the consideration to be paid, governance or management of the Potential Co-Investment Transactions. are reasonable and fair to the Regulated Fund and its equity holders and do not portfolio company will be shared (a) The Advisers will establish, involve overreaching in respect of the proportionately among any participating maintain and implement policies and Regulated Fund or its equity holders on Affiliated Funds (who may, in turn, procedures reasonably designed to the part of any person concerned; share their portion with their affiliated ensure that each Adviser is promptly (ii) the transaction is consistent with: persons) and any participating notified of all Potential Co-Investment (A) The interests of the Regulated Regulated Fund(s) in accordance with Transactions that fall within the then- Fund’s equity holders; and the amount of each such party’s current Objectives and Strategies and (B) the Regulated Fund’s then-current investment; and Board-Established Criteria of any Objectives and Strategies; (iv) the proposed investment by the Regulated Fund the Adviser manages. (iii) the investment by any other Regulated Fund will not involve (b) When an Adviser to a Regulated Regulated Fund(s) or Affiliated Fund(s) compensation, remuneration or a direct Fund is notified of a Potential Co- would not disadvantage the Regulated or indirect 23 financial benefit to the Investment Transaction under Fund, and participation by the Advisers, any other Regulated Fund, the Condition 1(a), the Adviser will make Regulated Fund would not be on a basis Affiliated Funds or any affiliated person an independent determination of the different from, or less advantageous of any of them (other than the parties to appropriateness of the investment for than, that of any other Regulated the Co-Investment Transaction), except the Regulated Fund in light of the Fund(s) or Affiliated Fund(s) (A) to the extent permitted by Condition Regulated Fund’s then-current participating in the transaction; 14, (B) to the extent permitted by circumstances. provided that the Required Majority section 17(e) or 57(k), as applicable, (C) 2. Board Approvals of Co-Investment shall not be prohibited from reaching indirectly, as a result of an interest in Transactions. the conclusions required by this (a) If the Adviser deems a Regulated Condition 2(c)(iii) if: 23 For example, procuring the Regulated Fund’s Fund’s participation in any Potential (A) The settlement date for another investment in a Potential Co-Investment Transaction to permit an affiliate to complete or Co-Investment Transaction to be Regulated Fund or an Affiliated Fund in obtain better terms in a separate transaction would appropriate for the Regulated Fund, it a Co-Investment Transaction is later constitute an indirect financial benefit.

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the securities issued by one of the Funds and Affiliated Funds have (a) General. If any Regulated Fund or parties to the Co-Investment previously participated in a Co- Affiliated Fund elects to sell, exchange Transaction, or (D) in the case of fees or Investment Transaction with respect to or otherwise dispose of a Pre-Boarding other compensation described in the issuer, then: Investment in a Potential Co-Investment Condition 2(c)(iii)(B)(z). (i) The Adviser to such Regulated Transaction and the Regulated Funds 3. Right to Decline. Each Regulated Fund or Affiliated Fund 26 will notify and Affiliated Funds have not Fund has the right to decline to each Regulated Fund that holds an previously participated in a Co- participate in any Potential Co- investment in the issuer of the proposed Investment Transaction with respect to Investment Transaction or to invest less Disposition at the earliest practical time; the issuer: than the amount proposed. and (i) The Adviser to such Regulated 4. General Limitation. Except for (ii) the Adviser to each Regulated Fund or Affiliated Fund will notify each Follow-On Investments made in Fund that holds an investment in the Regulated Fund that holds an accordance with Conditions 8 and 9 issuer will formulate a recommendation investment in the issuer of the proposed below,24 a Regulated Fund will not as to participation by such Regulated Disposition at the earliest practical time; invest in reliance on the Order in any Fund in the Disposition. (ii) the Adviser to each Regulated issuer in which a Related Party has an (b) Same Terms and Conditions. Each Fund that holds an investment in the investment.25 Regulated Fund will have the right to issuer will formulate a recommendation 5. Same Terms and Conditions. A participate in such Disposition on a as to participation by such Regulated Regulated Fund will not participate in proportionate basis, at the same price Fund in the Disposition; and any Potential Co-Investment and on the same terms and conditions (iii) the Advisers will provide to the Transaction unless (i) the terms, as those applicable to the Affiliated Board of each Regulated Fund that conditions, price, class of securities to Funds and any other Regulated Fund. holds an investment in the issuer all be purchased, date on which the (c) No Board Approval Required. A information relating to the existing commitment is entered into and Regulated Fund may participate in such investments in the issuer of the registration rights (if any) will be the a Disposition without obtaining prior Regulated Funds and Affiliated Funds, same for each participating Regulated approval of the Required Majority if: including the terms of such investments Fund and Affiliated Fund and (ii) the (i) (A) The participation of each and how they were made, that is earliest settlement date and the latest Regulated Fund and Affiliated Fund in necessary for the Required Majority to settlement date of any participating such Disposition is proportionate to its make the findings required by this Regulated Fund or Affiliated Fund will then-current holding of the security (or Condition. occur as close in time as practicable and securities) of the issuer that is (or are) (b) Enhanced Board Approval. The in no event more than ten business days the subject of the Disposition; 27 (B) the Adviser will provide its written apart. The grant to one or more Board of the Regulated Fund has recommendation as to the Regulated Regulated Funds or Affiliated Funds, approved as being in the best interests Fund’s participation to the Eligible but not the respective Regulated Fund, of the Regulated Fund the ability to Directors, and the Regulated Fund will of the right to nominate a director for participate in such Dispositions on a pro participate in such Disposition solely to election to a portfolio company’s board rata basis (as described in greater detail the extent that a Required Majority of directors, the right to have an in the application); and (C) the Board of determines that: observer on the board of directors or the Regulated Fund is provided on a (i) The Disposition complies with similar rights to participate in the quarterly basis with a list of all Condition 2(c)(i), (ii), (iii)(A), and (iv); governance or management of the Dispositions made in accordance with and portfolio company will not be this Condition; or (ii) the making and holding of the Pre- interpreted so as to violate this (ii) each security is a Tradable Boarding Investments were not Condition 5, if Condition 2(c)(iii)(B) is Security and (A) the Disposition is not prohibited by section 57 or rule 17d–1, met. to the issuer or any affiliated person of as applicable, and records the basis for 6. Standard Review Dispositions. the issuer; and (B) the security is sold the finding in the Board minutes. (a) General. If any Regulated Fund or (c) Additional Requirements: The Affiliated Fund elects to sell, exchange for cash in a transaction in which the only term negotiated by or on behalf of Disposition may only be completed in or otherwise dispose of an interest in a reliance on the Order if: security and one or more Regulated the participating Regulated Funds and Affiliated Funds is price. (i) Same Terms and Conditions. Each (d) Standard Board Approval. In all Regulated Fund has the right to 24 This exception applies only to Follow-On participate in such Disposition on a Investments by a Regulated Fund in issuers in other cases, the Adviser will provide its which that Regulated Fund already holds written recommendation as to the proportionate basis, at the same price investments. Regulated Fund’s participation to the and on the same terms and Conditions 25 ‘‘Related Party’’ means (i) any Close Affiliate Eligible Directors and the Regulated as those applicable to the Affiliated and (ii) in respect of matters as to which any Funds and any other Regulated Fund; Adviser has knowledge, any Remote Affiliate. Fund will participate in such Disposition solely to the extent that a (ii) Original Investments. All of the ‘‘Close Affiliate’’ means the Advisers, the Affiliated Funds’ and Regulated Funds’ Regulated Funds, the Affiliated Funds and any Required Majority determines that it is other person described in section 57(b) (after giving in the Regulated Fund’s best interests. investments in the issuer are Pre- effect to rule 57b–1) in respect of any Regulated 7. Enhanced Review Dispositions. Boarding Investments; Fund (treating any registered investment company (iii) Advice of counsel. Independent or series thereof as a BDC for this purpose) except counsel to the Board advises that the for limited partners included solely by reason of the 26 Any Investcorp Proprietary Account that is not reference in section 57(b) to section 2(a)(3)(D). advised by an Adviser is itself deemed to be an making and holding of the investments ‘‘Remote Affiliate’’ means any person described Adviser for purposes of Conditions 6(a)(i), 7(a)(i), in the Pre-Boarding Investments were in section 57(e) in respect of any Regulated Fund 8(a)(i) and 9(a)(i). not prohibited by section 57 (as (treating any registered investment company or 27 In the case of any Disposition, proportionality modified by rule 57b–1) or rule 17d–1, series thereof as a BDC for this purpose) and any will be measured by each participating Regulated limited partner holding 5% or more of the relevant Fund’s and Affiliated Fund’s outstanding as applicable; limited partner interests that would be a Close investment in the security in question immediately (iv) Multiple Classes of Securities. All Affiliate but for the exclusion in that definition. preceding the Disposition. Regulated Funds and Affiliated Funds

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that hold Pre-Boarding Investments in Affiliated Fund in such investment is described in section III.A.1.b. of the the issuer immediately before the time proportionate to its outstanding application. of completion of the Co-Investment investments in the issuer or the security (e) Other Conditions. The acquisition Transaction hold the same security or at issue, as appropriate,29 immediately of Follow-On Investments as permitted securities of the issuer. For the purpose preceding the Follow-On Investment; by this Condition will be considered a of determining whether the Regulated and (B) the Board of the Regulated Fund Co-Investment Transaction for all Funds and Affiliated Funds hold the has approved as being in the best purposes and subject to the other same security or securities, they may interests of the Regulated Fund the Conditions set forth in the application. disregard any security held by some but ability to participate in Follow-On 9. Enhanced Review Follow-Ons. not all of them if, prior to relying on the Investments on a pro rata basis (as (a) General. If any Regulated Fund or Order, the Required Majority is described in greater detail in the Affiliated Fund desires to make a presented with all information application); or Follow-On Investment in an issuer that necessary to make a finding, and finds, (ii) it is a Non-Negotiated Follow-On is a Potential Co-Investment Transaction that: (x) Any Regulated Fund’s or Investment. and the Regulated Funds and Affiliated Affiliated Fund’s holding of a different (c) Standard Board Approval. In all Funds holding investments in the issuer class of securities (including for this other cases, the Adviser will provide its have not previously participated in a purpose a security with a different written recommendation as to the Co-Investment Transaction with respect maturity date) is immaterial 28 in Regulated Fund’s participation to the to the issuer: amount, including immaterial relative to Eligible Directors and the Regulated (i) The Adviser to each such the size of the issuer; and (y) the Board Fund will participate in such Follow-On Regulated Fund or Affiliated Fund will records the basis for any such finding in Investment solely to the extent that a notify each Regulated Fund that holds its minutes. In addition, securities that Required Majority makes the securities of the portfolio company of differ only in respect of issuance date, determinations set forth in Condition the proposed transaction at the earliest currency, or denominations may be 2(c). If the only previous Co-Investment practical time; treated as the same security; and Transaction with respect to the issuer (ii) the Adviser to each Regulated (v) No control. The Affiliated Funds, was an Enhanced Review Disposition Fund that holds an investment in the the other Regulated Funds and their the Eligible Directors must complete issuer will formulate a recommendation affiliated persons (within the meaning this review of the proposed Follow-On as to the proposed participation, of section 2(a)(3)(C) of the Act), Investment both on a stand-alone basis including the amount of the proposed individually or in the aggregate, do not and together with the Pre-Boarding investment, by such Regulated Fund; control the issuer of the securities Investments in relation to the total and (iii) the Advisers will provide to the (within the meaning of section 2(a)(9) of economic exposure and other terms of Board of each Regulated Fund that the Act). the investment. 8. Standard Review Follow-Ons. (d) Allocation. If, with respect to any holds an investment in the issuer all (a) General. If any Regulated Fund or such Follow-On Investment: information relating to the existing Affiliated Fund desires to make a (i) The amount of the opportunity investments in the issuer of the Follow-On Investment in an issuer and proposed to be made available to any Regulated Funds and Affiliated Funds, the Regulated Funds and Affiliated Regulated Fund is not based on the including the terms of such investments Funds holding investments in the issuer Regulated Funds’ and the Affiliated and how they were made, that is previously participated in a Co- Funds’ outstanding investments in the necessary for the Required Majority to Investment Transaction with respect to issuer or the security at issue, as make the findings required by this the issuer: appropriate, immediately preceding the Condition. (i) The Adviser to each such Follow-On Investment; and (b) Enhanced Board Approval. The Regulated Fund or Affiliated Fund will (ii) the aggregate amount Adviser will provide its written notify each Regulated Fund that holds recommended by the Advisers to be recommendation as to the Regulated securities of the portfolio company of invested in the Follow-On Investment Fund’s participation to the Eligible the proposed transaction at the earliest by the participating Regulated Funds Directors, and the Regulated Fund will practical time; and and any participating Affiliated Funds, participate in such Follow-On (ii) the Adviser to each Regulated collectively, exceeds the amount of the Investment solely to the extent that a Fund that holds an investment in the investment opportunity, then the Required Majority reviews the proposed issuer will formulate a recommendation Follow-On Investment opportunity will Follow-On Investment both on a stand- as to the proposed participation, be allocated among them pro rata based alone basis and together with the Pre- including the amount of the proposed on the size of the Internal Orders, as Boarding Investments in relation to the investment, by such Regulated Fund. total economic exposure and other (b) No Board Approval Required. A 29 To the extent that a Follow-On Investment terms and makes the determinations set Regulated Fund may participate in the opportunity is in a security or arises in respect of forth in Condition 2(c). In addition, the Follow-On Investment without a security held by the participating Regulated Follow-On Investment may only be obtaining prior approval of the Required Funds and Affiliated Funds, proportionality will be completed in reliance on the Order if Majority if: measured by each participating Regulated Fund’s the Required Majority of each (i) (A) The proposed participation of and Affiliated Fund’s outstanding investment in the security in question immediately preceding the participating Regulated Fund each Regulated Fund and each Follow-On Investment using the most recent determines that the making and holding available valuation thereof. To the extent that a of the Pre-Boarding Investments were 28 In determining whether a holding is Follow-On Investment opportunity relates to an ‘‘immaterial’’ for purposes of the Order, the opportunity to invest in a security that is not in not prohibited by section 57 (as Required Majority will consider whether the nature respect of any security held by any of the modified by rule 57b–1) or rule 17d–1, and extent of the interest in the transaction or participating Regulated Funds or Affiliated Funds, as applicable. The basis for the Board’s arrangement is sufficiently small that a reasonable proportionality will be measured by each findings will be recorded in its minutes. person would not believe that the interest affected participating Regulated Fund’s and Affiliated (c) Additional Requirements. The the determination of whether to enter into the Fund’s outstanding investment in the issuer transaction or arrangement or the terms of the immediately preceding the Follow-On Investment Follow-On Investment may only be transaction or arrangement. using the most recent available valuation thereof. completed in reliance on the Order if:

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(i) Original Investments. All of the (e) Other Conditions. The acquisition (d) The Independent Directors Affiliated Funds’ and Regulated Funds’ of Follow-On Investments as permitted (including the non-interested members investments in the issuer are Pre- by this Condition will be considered a of each Independent Party) will Boarding Investments; Co-Investment Transaction for all consider at least annually whether (ii) Advice of counsel. Independent purposes and subject to the other continued participation in new and counsel to the Board advises that the Conditions set forth in the application. existing Co-Investment Transactions is making and holding of the investments 10. Board Reporting, Compliance and in the Regulated Fund’s best interests. in the Pre-Boarding Investments were Annual Re-Approval 11. Record Keeping. Each Regulated not prohibited by section 57 (as (a) Each Adviser to a Regulated Fund Fund will maintain the records required modified by rule 57b–1) or rule 17d–1, will present to the Board of each by section 57(f)(3) of the Act as if each as applicable; Regulated Fund, on a quarterly basis, of the Regulated Funds were a BDC and (iii) Multiple Classes of Securities. All and at such other times as the Board each of the investments permitted under Regulated Funds and Affiliated Funds may request, (i) a record of all these Conditions were approved by the that hold Pre-Boarding Investments in investments in Potential Co-Investment Required Majority under section 57(f). the issuer immediately before the time Transactions made by any of the other 12. Director Independence. No of completion of the Co-Investment Regulated Funds or any of the Affiliated Independent Director (including the Transaction hold the same security or Funds during the preceding quarter that non-interested members of any securities of the issuer. For the purpose fell within the Regulated Fund’s then- Independent Party) of a Regulated Fund of determining whether the Regulated current Objectives and Strategies and will also be a director, general partner, Funds and Affiliated Funds hold the Board-Established Criteria that were not managing member or principal, or same security or securities, they may made available to the Regulated Fund, otherwise be an ‘‘affiliated person’’ (as disregard any security held by some but and an explanation of why such defined in the Act) of any Affiliated not all of them if, prior to relying on the investment opportunities were not made Fund. Order, the Required Majority is available to the Regulated Fund; (ii) a 13. Expenses. The expenses, if any, presented with all information record of all Follow-On Investments in associated with acquiring, holding or necessary to make a finding, and finds, and Dispositions of investments in any disposing of any securities acquired in that: (x) Any Regulated Fund’s or issuer in which the Regulated Fund a Co-Investment Transaction (including, Affiliated Fund’s holding of a different holds any investments by any Affiliated without limitation, the expenses of the class of securities (including for this Fund or other Regulated Fund during distribution of any such securities purpose a security with a different the prior quarter; and (iii) all registered for sale under the Securities maturity date) is immaterial in amount, information concerning Potential Co- Act) will, to the extent not payable by including immaterial relative to the size Investment Transactions and Co- the Advisers under their respective of the issuer; and (y) the Board records Investment Transactions, including advisory agreements with the Regulated the basis for any such finding in its investments made by other Regulated Funds and the Affiliated Funds, be minutes. In addition, securities that Funds or Affiliated Funds that the shared by the Regulated Funds and the differ only in respect of issuance date, Regulated Fund considered but declined participating Affiliated Funds in currency, or denominations may be to participate in, so that the proportion to the relative amounts of the treated as the same security; and Independent Directors, may determine securities held or being acquired or (iv) No control. The Affiliated Funds, whether all Potential Co-Investment disposed of, as the case may be. the other Regulated Funds and their Transactions and Co-Investment 14. Transaction Fees.30 Any affiliated persons (within the meaning Transactions during the preceding transaction fee (including break-up, of section 2(a)(3)(C) of the Act), quarter, including those investments structuring, monitoring or commitment individually or in the aggregate, do not that the Regulated Fund considered but fees but excluding brokerage or control the issuer of the securities declined to participate in, comply with underwriting compensation permitted (within the meaning of section 2(a)(9) of the Conditions. by section 17(e) or 57(k)) received in the Act). (b) All information presented to the connection with any Co-Investment (d) Allocation. If, with respect to any Regulated Fund’s Board pursuant to this Transaction will be distributed to the such Follow-On Investment: Condition will be kept for the life of the participants on a pro rata basis based on (i) The amount of the opportunity Regulated Fund and at least two years the amounts they invested or proposed to be made available to any thereafter, and will be subject to committed, as the case may be, in such Regulated Fund is not based on the examination by the Commission and its Co-Investment Transaction. If any Regulated Funds’ and the Affiliated staff. transaction fee is to be held by an Funds’ outstanding investments in the (c) Each Regulated Fund’s chief Adviser pending consummation of the issuer or the security at issue, as compliance officer, as defined in rule transaction, the fee will be deposited appropriate, immediately preceding the 38a–1(a)(4), will prepare an annual into an account maintained by the Follow-On Investment; and report for its Board each year that Adviser at a bank or banks having the (ii) the aggregate amount evaluates (and documents the basis of qualifications prescribed in section recommended by the Advisers to be that evaluation) the Regulated Fund’s 26(a)(1), and the account will earn a invested in the Follow-On Investment compliance with the terms and competitive rate of interest that will also by the participating Regulated Funds Conditions of the application and the be divided pro rata among the and any participating Affiliated Funds, procedures established to achieve such participants. None of the Advisers, the collectively, exceeds the amount of the compliance. In the case of a BDC Affiliated Funds, the other Regulated investment opportunity, then the Downstream Fund that does not have a Funds or any affiliated person of the Follow-On Investment opportunity will chief compliance officer, the chief Affiliated Funds or the Regulated Funds be allocated among them pro rata based compliance officer of the BDC that 30 controls the BDC Downstream Fund will Applicants are not requesting and the on the size of the Internal Orders, as Commission is not providing any relief for described in section III.A.1.b. of the prepare the report for the relevant transaction fees received in connection with any application. Independent Party. Co-Investment Transaction.

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will receive any additional owned by Transtar, LLC (Transtar), and carriers. Because this transaction compensation or remuneration of any to continue in control of both the involves Class III rail carriers only, the kind as a result of or in connection with Transtar Railroads and certain rail Board, under the statute, may not a Co-Investment Transaction other than carriers (the Fortress Railroads) owned impose labor protective conditions for (i) in the case of the Regulated Funds by companies or investment funds this transaction. and the Affiliated Funds, the pro rata managed by affiliates of Fortress.2 If the verified notice contains false or transaction fees described above and The verified notice states that on June misleading information, the exemption fees or other compensation described in 7, 2021, PALLC and United States Steel is void ab initio. Petitions to revoke the Condition 2(c)(iii)(B)(z), (ii) brokerage or Corporation, Transtar’s current owner, exemption under 49 U.S.C. 10502(d) underwriting compensation permitted entered into a purchase agreement may be filed at any time. The filing of by section 17(e) or 57(k) or (iii) in the pursuant to which PALLC will acquire a petition to revoke will not case of the Advisers, investment 100% of the equity interests of Transtar. automatically stay the effectiveness of advisory compensation paid in Upon consummation of the transaction the exemption. Petitions for stay must accordance with investment advisory contemplated by the purchase be filed no later than July 7, 2021 (at agreements between the applicable agreement, PALLC, a non-carrier, will least seven days before the exemption Regulated Fund(s) or Affiliated Fund(s) control the Transtar Railroads. PALLC is becomes effective). and its Adviser. owned and controlled by FTAI which is All pleadings, referring to Docket No. 15. Independence. If the Holders own managed by an affiliate of Fortress. FD 36521, should be filed with the in the aggregate more than 25 percent of Following the transaction, FTAI will Surface Transportation Board via e- the Shares of a Regulated Fund, then the continue to indirectly own 50.1% of the filing on the Board’s website. In Holders will vote such Shares in the equity interests of ORPS and all of the addition, one copy of each pleading same percentages as the Regulated equity interests of KRS, and investment must be served on Fortress’s Fund’s other shareholders (not funds managed by affiliates of Fortress representative, Terence M. Hynes, including the Holders) when voting on will continue to indirectly own a Sidley Austin LLP, 1501 K Street NW, (1) the election of directors; (2) the majority of the equity interests of DXE. Washington, DC 20005. removal of one or more directors; or (3) According to Fortress, ORPS, KRS, and According to Fortress, this action is any other matter under either the Act or DXE may each be deemed to be categorically excluded from applicable State law affecting the controlled by Fortress for purposes of 49 environmental review under 49 CFR Board’s composition, size or manner of U.S.C. 11323, because ORPS and KRS 1105.6(c) and from historic reporting election. are indirectly controlled by FTAI, DXE requirements under 49 CFR 1105.8(b). is indirectly controlled by Brightline Board decisions and notices are For the Commission, by the Division of available at www.stb.gov. Investment Management, under delegated Holdings LLC, and FTAI and Brightline authority. Holdings LLC are managed by affiliates Decided: June 25, 2021. J. Matthew DesLesDernier, of Fortress. By the Board, Scott M. Zimmerman, Acting Assistant Secretary. The transaction may be consummated Director, Office of Proceedings. on or after July 14, 2021, the effective Brendetta Jones, [FR Doc. 2021–13911 Filed 6–29–21; 8:45 am] date of the exemption (30 days after the Clearance Clerk. BILLING CODE 8011–01–P verified notice was filed). [FR Doc. 2021–13987 Filed 6–29–21; 8:45 am] Fortress represents that: (1) None of BILLING CODE 4915–01–P the Transtar Railroads or Fortress SURFACE TRANSPORTATION BOARD Railroads connect with each other or [Docket No. FD 36521] will connect with each other following SURFACE TRANSPORTATION BOARD the transaction; (2) the transaction is not [Docket No. AB 33 (Sub-No. 345X)] Fortress Investment Group LLC— part of a series of anticipated Acquisition and Continuance in transactions that would connect any of Union Pacific Railroad Company— Control Exemption—Ohio River those carriers; and (3) none of the Abandonment Exemption—in Partners Shareholder LLC, Katahdin Transtar Railroads or Fortress Railroads Riverside and San Bernardino Railcar Services, LLC, DesertXpress is a Class I rail carrier. The proposed Counties, CA Enterprises, LLC, Union Railroad transaction is therefore exempt from the Company, Gary Railway Company, prior approval requirements of 49 U.S.C. Union Pacific Railroad Company (UP) Delray Connecting Railroad Company, 11323 pursuant to 49 CFR 1180.2(d)(2). has filed a verified notice of exemption Texas & Northern Railroad Company, Under 49 U.S.C. 10502(g), the Board under 49 CFR part 1152 subpart F— and Lake Terminal Railroad Company may not use its exemption authority to Exempt Abandonments to abandon an relieve a rail carrier of its statutory approximately 0.54-mile portion of the Fortress Investment Group LLC obligation to protect the interests of its Crestmore Industrial Lead in Crestmore, (Fortress), a noncarrier, has filed a employees. However, 49 U.S.C. 11326(c) Cal., between milepost 7.06 and verified notice of exemption under 49 does not provide for labor protection for milepost 7.6, in Riverside and San CFR 1180.2(d)(2) for the benefit of transactions under 49 U.S.C. 11324 and Bernardino Counties, Cal. (the Line). Fortress Transportation and 11325 that involve only Class III rail The Line traverses U.S. Postal Service Infrastructure Investors LLC (FTAI) and Zip Codes 92509 and 92316.1 Percy Acquisition LLC (PALLC), which Railroad Company, and Lake Terminal Railroad are managed by an affiliate of Fortress, Company. Fortress states that all of the Transtar 1 UP initially filed its verified notice on to acquire control of five common Railroads are Class III rail carriers. September 18, 2020. After submitting the filing, UP carrier railroads (collectively, the 2 The Fortress Railroads are Ohio River Partners discovered that it inadvertently omitted that the 1 Shareholder LLC (ORPS), Katahdin Railcar Services Line extends into U.S. Postal Zip Code 92316 and Transtar Railroads) that are currently LLC (KRS), and DesertXpress Enterprises, LLC into San Bernardino County. At the request of UP, (DXE). Fortress states that DXE is authorized by the the proceeding was held in abeyance by a decision 1 The Transtar Railroads are Union Railroad Board to construct high-speed passenger rail service served on October 6, 2020. UP now has corrected Company, Gary Railway Company, Delray in California, ORPS is a non-operating carrier, and those omissions. UP filed its revised verified notice Connecting Railroad Company, Texas & Northern KRS is a Class III rail carrier. on June 2, 2021.

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UP has certified that: (1) No local via e-filing on the Board’s website. In Kentucky International Airport from traffic has moved over the Line for at addition, a copy of each pleading must federal obligations. least two years; (2) no overhead traffic be served on UP’s representative, Jeremy DATES: Comments must be received on has moved over the Line for at least two M. Berman, 1400 Douglas St., #1580 or before July 30, 2021. years (and thus there is no need to Omaha, NE 68179. ADDRESSES: Comments on this notice reroute any overhead traffic); (3) no If the verified notice contains false or may be emailed to the FAA at the formal complaint filed by a user of rail misleading information, the exemption following email address: FAA/Memphis service on the Line (or by a state or local is void ab initio. Airports District Office, Attn: Jamal government entity acting on behalf of UP has filed a combined Stovall, Community Planner, such user) regarding cessation of service environmental and historic report that [email protected]. over the Line either is pending with the addresses the potential effects, if any, of In addition, one copy of any Surface Transportation Board (Board) or the abandonment on the environment comments submitted to the FAA must with any U.S. District Court or has been and historic resources. OEA will issue a be mailed or delivered to Ms. Candace decided in favor of a complainant Draft Environmental Assessment (Draft S. McGraw, CEO, Kenton County within the two-year period; and (4) the EA) by July 2, 2021. The Draft EA will Airport Board at the following address: requirements at 49 CFR 1105.7(c) and be available to interested persons on the 77 Comair Blvd., Erlanger, KY 41018. 1105.8 (notice of environmental and Board’s website, by writing to OEA, or FOR FURTHER INFORMATION CONTACT: historic report), 49 CFR 1105.11 by calling OEA at (202) 245–0305. Jamal Stovall, Community Planner, (transmittal letter), 49 CFR 1105.12 Assistance for the hearing impaired is Federal Aviation Administration, (newspaper publication), and 49 CFR available through the Federal Relay Memphis Airports District Office, 2600, 1152.50(d)(1) (notice to governmental Service at (800) 877–8339. Comments Thousand Oaks Boulevard, Suite 2250, agencies) have been met. on environmental and historic Memphis, TN 38118–2482, As a condition to this exemption, any preservation matters must be filed [email protected], (901) 322–8185. employee adversely affected by the within 15 days after the Draft EA The application may be reviewed in abandonment shall be protected under becomes available to the public. person at this same location, by Oregon Short Line Railroad— Environmental, historic preservation, appointment. Abandonment Portion Goshen Branch public use, or trail use/rail banking SUPPLEMENTARY INFORMATION: Between Firth & Ammon, in Bingham & conditions will be imposed, where The FAA Bonneville Counties, Idaho, 360 I.C.C. appropriate, in a subsequent decision. proposes to rule and invites public 91 (1979). To address whether this Pursuant to the provisions of 49 CFR comment on the request to release condition adequately protects affected 1152.29(e)(2), UP shall file a notice of property for disposal at Cincinnati/ employees, a petition for partial consummation with the Board to signify Northern Kentucky International revocation under 49 U.S.C. 10502(d) that it has exercised the authority Airport, 2939 Terminal Drive, Hebron, must be filed. granted and fully abandoned the Line. If KY 41048, under the provisions of 49 Provided no formal expression of consummation has not been effected by U.S.C. 47107(h)(2). The FAA intent to file an offer of financial UP’s filing of a notice of consummation determined that the request to release assistance (OFA) has been received,2 by June 30, 2022, and there are no legal property at Cincinnati/Northern this exemption will be effective on July or regulatory barriers to consummation, Kentucky International Airport (CVG) 30, 2021, unless stayed pending the authority to abandon will submitted by the Sponsor meets the reconsideration. Petitions to stay that do automatically expire. procedural requirements of the Federal not involve environmental issues,3 Board decisions and notices are Aviation Administration and the release formal expressions of intent to file an available at www.stb.gov. of these properties does not and will not impact future aviation needs at the OFA under 49 CFR 1152.27(c)(2), and Decided: June 25, 2021. interim trail use/rail banking requests airport. The FAA may approve the By the Board, Scott M. Zimmerman, Acting request, in whole or in part, no sooner under 49 CFR 1152.29 must be filed by Director, Office of Proceedings. 4 than thirty days after the publication of July 12, 2021. Petitions to reopen or Kenyatta Clay, requests for public use conditions under this notice. Clearance Clerk. The request consists of the following: 49 CFR 1152.28 must be filed by July 20, [FR Doc. 2021–13979 Filed 6–29–21; 8:45 am] The Kenton County Airport Board is 2021. BILLING CODE 4915–01–P proposing the release of airport property All pleadings, referring to Docket No. totaling 4.44 acres, more or less. The AB 33 (Sub-No. 345X), should be filed Kenton County Airport Board proposes with the Surface Transportation Board DEPARTMENT OF TRANSPORTATION to sell six parcels of airport land totaling 2 Persons interested in submitting an OFA must 6.032 acres located on the northwest first file a formal expression of intent to file an offer Federal Aviation Administration side of CVG along Petersburg Road, indicating the type of financial assistance they wish KY20 in Boone County, Kentucky. to provide (i.e., subsidy or purchase) and Notice of Intent To Rule on Disposal of Three of the six parcels (referenced on demonstrating that they are preliminarily Aeronautical Property at Cincinnati/ the current Exhibit A as 8013 Lot 14, financially responsible. See 49 CFR 1152.27(c)(2)(i). Northern Kentucky International 3 8077 Lot 15, and 8088 Lots 17&18) were The Board will grant a stay if an informed Airport, Hebron, KY (CVG) decision on environmental issues (whether raised purchased with Airport Improvement by a party or by the Board’s Office of Environmental AGENCY: Federal Aviation Plan (AIP) funds and are subject to this Analysis (OEA) in its independent investigation) release. The three aforementioned AIP cannot be made before the exemption’s effective Administration (FAA), DOT. date. See Exemption of Out-of-Serv. Rail Lines, 5 ACTION: Notice. funded parcels account for I.C.C.2d 377 (1989). Any request for a stay should approximately 4.44 acres of the 6.032 be filed as soon as possible so that the Board may SUMMARY: The Federal Aviation acres being sold by the Board. The take appropriate action before the exemption’s Administration is requesting public future use of the property is an access effective date. 4 Filing fees for OFAs and trail use requests can comment on a request by Kenton road for an industrial development to be found at 49 CFR 1002.2(f)(25) and (27), County Airport Board, to release of land the north of the subject parcels. Portions respectively. (4.44 acres) at Cincinnati/Northern of the parcels were previously

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exchanged with the State of Kentucky as inclusion nor omission of information Sections of 14 CFR Affected: part of the relocation of Petersburg in the summary is intended to affect the 21.197(a)(1) and (c). Road, KY 20 during the construction of legal status of the petition or its final Description of Relief Sought: Runway 18R/36L. The release of land is disposition. American Airlines, Inc. (American) petitions for an exemption from Title necessary to comply with Federal DATES: Comments on this petition must Aviation Administration Grant identify the petition docket number and 14, Code of Regulations § 21.197(a)(1) and (c) to allow a ferry under Assurances that do not allow federally must be received on or before July 20, American’s D084 Operations acquired airport property to be used for 2021. non-aviation purposes. The sale of the Specifications of unairworthy aircraft, ADDRESSES: Send comments identified subject property will result in the land but safe for point of storage. by docket number FAA–2021–0494 at Cincinnati/Northern Kentucky using any of the following methods: [FR Doc. 2021–13958 Filed 6–29–21; 8:45 am] International Airport (CVG) being • Federal eRulemaking Portal: Go to BILLING CODE 4910–13–P changed from aeronautical to non- http://www.regulations.gov and follow aeronautical use and release the lands the online instructions for sending your DEPARTMENT OF TRANSPORTATION from the conditions of the Airport comments electronically. Improvement Program Grant Agreement • Mail: Send comments to Docket Federal Aviation Administration Grant Assurances. In accordance with Operations, M–30; U.S. Department of 49 U.S.C. 47107(c)(2)(B)(i) and (iii), the Transportation, 1200 New Jersey [Summary Notice No. 2021–2079] airport will receive fair market value for Avenue SE, Room W12–140, West the property, which will be Building Ground Floor, Washington, DC Petition for Exemption; Summary of subsequently reinvested in another 20590–0001. Petition Received; United States eligible airport improvement project for • Hand Delivery or Courier: Take Marine Corps aviation facilities at CVG. The proposed comments to Docket Operations in AGENCY: Federal Aviation use of this property is compatible with Room W12–140 of the West Building Administration, Department of airport operations. Ground Floor at 1200 New Jersey Transportation. This request will release this property Avenue SE, Washington, DC 20590– ACTION: Notice. from federal obligations. This action is 0001, between 9 a.m. and 5 p.m., taken under the provisions of 49 U.S.C. Monday through Friday, except Federal SUMMARY: This notice contains a 47107(h)(2). holidays. summary of a petition seeking relief Any person may inspect the request • Fax: Fax comments to Docket from specified requirements of Federal in person at the FAA office listed above Operations at (202) 493–2251. Aviation Regulations. The purpose of under FOR FURTHER INFORMATION Privacy: In accordance with 5 U.S.C. this notice is to improve the public’s CONTACT. 553(c), DOT solicits comments from the awareness of, and participation in, the In addition, any person may, upon public to better inform its rulemaking FAA’s exemption process. Neither request, inspect the request, notice and process. DOT posts these comments, publication of this notice nor the other documents germane to the request without edit, including any personal inclusion or omission of information in in person at the Cincinnati/Northern information the commenter provides, to the summary is intended to affect the Kentucky International Airport. http://www.regulations.gov, as legal status of the petition or its final Issued in Memphis, Tennessee, on June 24, described in the system of records disposition. 2021. notice (DOT/ALL–14 FDMS), which can DATES: Comments on this petition must Duane Leland Johnson, be reviewed at http://www.dot.gov/ identify the petition docket number and Assistant Manager, Memphis Airports District privacy. must be received on or before July 20, Office, Southern Region. Docket: Background documents or 2021. [FR Doc. 2021–13981 Filed 6–29–21; 8:45 am] comments received may be read at ADDRESSES: Send comments identified BILLING CODE 4910–13–P http://www.regulations.gov at any time. Follow the online instructions for by docket number FAA–2021–0162 accessing the docket or go to the Docket using any of the following methods: • Federal eRulemaking Portal: Go to DEPARTMENT OF TRANSPORTATION Operations in Room W12–140 of the https://www.regulations.gov and follow West Building Ground Floor at 1200 the online instructions for sending your Federal Aviation Administration New Jersey Avenue SE, Washington, DC comments electronically. 20590–0001, between 9 a.m. and 5 p.m., [Summary Notice No.—2022–2085] • Mail: Send comments to Docket Monday through Friday, except Federal Operations, M–30; U.S. Department of Petition for Exemption; Summary of holidays. Transportation, 1200 New Jersey Petition Received; American Airlines, FOR FURTHER INFORMATION CONTACT: Nia Avenue SE, Room W12–140, West Inc. Daniels, (202) 267–7626, Office of Building Ground Floor, Washington, DC AGENCY: Federal Aviation Rulemaking, Federal Aviation 20590–0001. Administration (FAA), Department of Administration, 800 Independence • Hand Delivery or Courier: Take Transportation (DOT). Avenue SW, Washington, DC 20591. comments to Docket Operations in This notice is published pursuant to ACTION: Notice. Room W12–140 of the West Building 14 CFR 11.85. Ground Floor at 1200 New Jersey SUMMARY: This notice contains a Issued in Washington, DC. Avenue SE, Washington, DC 20590– summary of a petition seeking relief Timothy R. Adams, 0001, between 9 a.m. and 5 p.m., from specified requirements of Federal Acting Executive Director, Office of Monday through Friday, except Federal Aviation Regulations. The purpose of Rulemaking. holidays. this notice is to improve the public’s • Fax: Fax comments to Docket awareness of, and participation in, Petition for Exemption Operations at (202) 493–2251. FAA’s exemption process. Neither Docket No.: FAA–2021–0494. Privacy: In accordance with 5 U.S.C. publication of this notice nor the Petitioner: American Airlines, Inc. 553(c), DOT solicits comments from the

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public to better inform its rulemaking ACTION: Notice. This notice is published pursuant to process. DOT posts these comments, 14 CFR 11.85. without edit, including any personal SUMMARY: This notice contains a summary of a petition seeking relief Issued in Washington, DC. information the commenter provides, to Timothy R. Adams, https://www.regulations.gov, as from specified requirements of Federal Aviation Regulations. The purpose of Acting Executive Director, Office of described in the system of records Rulemaking. notice (DOT/ALL–14 FDMS), which can this notice is to improve the public’s be reviewed at https://www.dot.gov/ awareness of, and participation in, Petition for Exemption privacy. FAA’s exemption process. Neither publication of this notice nor the Docket No.: FAA–2021–0388. Docket: Background documents or Petitioner: K&S Aviation Services, Inc. inclusion nor omission of information comments received may be read at Section(s) of 14 CFR Affected: in the summary is intended to affect the https://www.regulations.gov at any time. § 61.156(a). legal status of the petition or its final Follow the online instructions for Description of Relief Sought: K&S disposition. accessing the docket or go to the Docket Aviation Services is an approved Operations in Room W12–140 of the DATES: Comments on this petition must training provider of the airline transport West Building Ground Floor at 1200 identify the petition docket number and pilot certification training program (ATP New Jersey Avenue SE, Washington, DC must be received on or before July 20, CTP) under title 14, Code of Federal 20590–0001, between 9 a.m. and 5 p.m., 2021. Regulations (14 CFR) part 142. It is Monday through Friday, except Federal ADDRESSES: Send comments identified seeking an exemption from 14 CFR holidays. by docket number FAA–2021–0388 61.156(a) to use video teleconferencing FOR FURTHER INFORMATION CONTACT: Jake using any of the following methods: technology in lieu of classroom Troutman, (202) 683–7788, Office of • Federal eRulemaking Portal: Go to instruction to teach the academic Rulemaking, Federal Aviation http://www.regulations.gov and follow portion of the ATP CTP. Administration, 800 Independence the online instructions for sending your [FR Doc. 2021–13962 Filed 6–29–21; 8:45 am] Avenue SW, Washington, DC 20591. comments electronically. BILLING CODE 4910–13–P This notice is published pursuant to • Mail: Send comments to Docket 14 CFR 11.85. Operations, M–30; U.S. Department of Issued in Washington, DC. Transportation, 1200 New Jersey DEPARTMENT OF TRANSPORTATION Timothy R. Adams, Avenue SE, Room W12–140, West Building Ground Floor, Washington, DC Federal Aviation Administration Acting Executive Director, Office of Rulemaking. 20590–0001. [Summary Notice No.—2021–2077] • Hand Delivery or Courier: Take Petition for Exemption comments to Docket Operations in Petition for Exemption; Summary of Docket No.: FAA–2021–0162. Room W12–140 of the West Building Petition Received; Sikorsky Aircraft Petitioner: United States Marine Ground Floor at 1200 New Jersey Corporation Corps. Avenue SE, Washington, DC 20590– 0001, between 9 a.m. and 5 p.m., AGENCY: Federal Aviation Section(s) of 14 CFR Affected: 91.205 Administration (FAA), Department of & 91.209. Monday through Friday, except Federal holidays. Transportation (DOT). Description of Relief Sought: The • United States Marine Corps seeks relief Fax: Fax comments to Docket ACTION: Notice. Operations at (202) 493–2251. for Marine Unmanned Aerial Squadron SUMMARY: This notice contains a Three (VMU–3) to operate the RQ–21A Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the summary of a petition seeking relief Blackjack unmanned aircraft system from specified requirements of Federal (UAS) for national defense requirements public to better inform its rulemaking process. DOT posts these comments, Aviation Regulations. The purpose of with relief from the required lighting this notice is to improve the public’s equipage and lighting needed to without edit, including any personal information the commenter provides, to awareness of, and participation in, the conduct UAS night operations in the FAA’s exemption process. Neither Marine Corps Air Station (MCAS) http://www.regulations.gov, as described in the system of records publication of this notice nor the Kaneohe Bay Class D and delegated inclusion or omission of information in Class E airspace to include the airspace notice (DOT/ALL–14 FDMS), which can be reviewed at http://www.dot.gov/ the summary is intended to affect the over Marine Corps Training Area legal status of the petition or its final Bellows (MCTAB). privacy. Docket: Background documents or disposition. [FR Doc. 2021–13961 Filed 6–29–21; 8:45 am] comments received may be read at DATES: Comments on this petition must BILLING CODE 4910–13–P http://www.regulations.gov at any time. identify the petition docket number and Follow the online instructions for must be received on or before July 20, accessing the docket or go to the Docket DEPARTMENT OF TRANSPORTATION 2021. Operations in Room W12–140 of the ADDRESSES: Send comments identified Federal Aviation Administration West Building Ground Floor at 1200 by docket number FAA–2021–0351 New Jersey Avenue SE, Washington, DC using any of the following methods: [Summary Notice No. 2022–2081] 20590–0001, between 9 a.m. and 5 p.m., • Federal eRulemaking Portal: Go to Monday through Friday, except Federal Petition for Exemption; Summary of http://www.regulations.gov and follow holidays. Petition Received; K&S Aviation the online instructions for sending your Services, Inc. FOR FURTHER INFORMATION CONTACT: comments electronically. Heidi L. Hunt 202–267–7806, Office of • Mail: Send comments to Docket AGENCY: Federal Aviation Rulemaking, Federal Aviation Operations, M–30; U.S. Department of Administration (FAA), Department of Administration, 800 Independence Transportation, 1200 New Jersey Transportation (DOT). Avenue SW, Washington, DC 20591. Avenue SE, Room W12–140, West

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Building Ground Floor, Washington, DC aircraft capabilities and increases dot.gov. If you have questions on 20590–0001. situational awareness in the interest of viewing or submitting material to the • Hand Delivery or Courier: Take public safety. docket, contact Dockets Operations, comments to Docket Operations in [FR Doc. 2021–13960 Filed 6–29–21; 8:45 am] (202) 366–9826. Room W12–140 of the West Building BILLING CODE 4910–13–P SUPPLEMENTARY INFORMATION: Ground Floor at 1200 New Jersey Avenue SE, Washington, DC 20590– I. Public Participation 0001, between 9 a.m. and 5 p.m., DEPARTMENT OF TRANSPORTATION Viewing Comments and Documents Monday through Friday, except Federal To view comments, go to holidays. Federal Motor Carrier Safety • Fax: Fax comments to Docket Administration www.regulations.gov, insert the docket number ‘‘FMCSA–2021–0052’’ in the Operations at (202) 493–2251. [Docket No. FMCSA–2021–0052] Privacy: In accordance with 5 U.S.C. keyword box, and click ‘‘Search.’’ Next, 553(c), DOT solicits comments from the sort the results by ‘‘Posted (Newer- Hours of Service (HOS) of Drivers; Older),’’ choose the first notice listed, public to better inform its rulemaking Application for Renewal of American process. DOT posts these comments, click ‘‘Browse Comments.’’ Pyrotechnics Association Exemptions To view documents mentioned in this without edit, including any personal From the 14-Hour Rule and the notice as being available in the docket, information the commenter provides, to Electronic Logging Device Rule During go to www.regulations.gov, insert the http://www.regulations.gov, as Independence Day Celebrations docket number ‘‘FMCSA–2021–0052’’ in described in the system of records the keyword box, click ‘‘Search,’’ and notice (DOT/ALL–14 FDMS), which can AGENCY: Federal Motor Carrier Safety chose the document to review. be reviewed at http://www.dot.gov/ Administration (FMCSA), DOT. If you do not have access to the privacy. ACTION: Notice of final disposition; grant internet, you may view the docket Docket: Background documents or of exemptions. online by visiting Dockets Operations in comments received may be read at Room W12–140 on the ground floor of http://www.regulations.gov at any time. SUMMARY: FMCSA announces its the DOT West Building, 1200 New Follow the online instructions for decision to grant, in part, the Jersey Avenue SE, Washington, DC accessing the docket or go to the Docket application of the American 20590, between 9 a.m. and 5 p.m., ET, Operations in Room W12–140 of the Pyrotechnics Association (APA) for Monday through Friday, except Federal West Building Ground Floor at 1200 renewal of exemptions from certain holidays. To be sure someone is there to New Jersey Avenue SE, Washington, DC hours of service (HOS) regulations that help you, please call (202) 366–9317 or 20590–0001, between 9 a.m. and 5 p.m., expired on July 8, 2020. The request is (202) 366–9826 before visiting Dockets Monday through Friday, except Federal being made on behalf of 60 APA Operations. holidays. member companies. The exemptions FOR FURTHER INFORMATION CONTACT: will allow drivers for these companies II. Legal Basis to exclude off-duty and sleeper berth Keira Jones, Office of Rulemaking, FMCSA has authority under 49 U.S.C. Federal Aviation Administration, 800 time of any length from the calculation of the 14-hour limit and to use paper 31136(e) and 31315(b) to grant Independence Avenue SW, Washington, exemptions from certain Federal Motor DC 20591. records of duty status (RODS) in lieu of electronic logging devices (ELD) during Carrier Safety Regulations. FMCSA must This notice is published pursuant to publish a notice of each exemption 14 CFR 11.85. the 2021 Independence Day period. FMCSA has analyzed the application for request in the Federal Register (49 CFR Issued in Washington, DC. exemptions and the public comments 381.315(a)). The Agency must provide Timothy R. Adams, and has determined that the the public an opportunity to inspect the Acting Executive Director, Office of exemptions, subject to the terms and information relevant to the application, Rulemaking. conditions imposed, will likely achieve including any safety analyses that have been conducted. The Agency must also Petition for Exemption a level of safety that is equivalent to, or greater than, the level that would be provide an opportunity for public Docket No.: FAA–2021–0351. achieved absent such exemptions. comment on the request. Petitioner: Sikorsky Aircraft The Agency reviews safety analyses DATES: Corporation. These exemptions are effective and public comments submitted and Section(s) of 14 CFR Affected: June 28 through July 8, 2021. determines whether granting the §§ 91.225(b) and 91.227(d)(18). Docket: For access to the docket to exemption would likely achieve a level Description of Relief Sought: Sikorsky read background documents or of safety equivalent to, or greater than, Aircraft Corporation (Sikorsky) seeks comments, go to www.regulations.gov at the level that would be achieved by the relief from §§ 91.225(b) and any time or visit Room W12–140 on the current regulation (49 CFR 381.305). 91.227(d)(18) to conduct research and ground level of the West Building, 1200 The decision of the Agency must be development, market survey, and New Jersey Avenue SE, Washington, published in the Federal Register (49 customer training flights for two S–70i DC, between 9 a.m. and 5 p.m., ET, CFR 381.315(b)) with the reasons for type aircraft (N8034M and N8048X) that Monday through Friday, except Federal denying or granting the application and, are not type certified. Sikorsky operates holidays. To be sure someone is there to if granted, the name of the person or these aircraft with a special help you, please call (202) 366–9317 or class of persons receiving the airworthiness certificate under (202) 366–9826 before visiting Dockets exemption, and the regulatory provision experimental category. The requested operations. from which the exemption is granted. exemption will allow Sikorsky to FOR FURTHER INFORMATION CONTACT: Ms. The notice must also specify the operate in airspace that requires Pearlie Robinson, FMCSA Driver and effective period (up to 5 years) and Automatic Dependent Surveillance– Carrier Operations Division; Office of explain the terms and conditions of the Broadcast (ADS–B) out equipment Carrier, Driver and Vehicle Safety exemption. The exemption may be utilizing a system which enhances the Standards; (202) 366–4225; MCPSD@ renewed (49 CFR 381.300(b)).

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III. Background through 2014. On May 9, 2016, the VII. FMCSA Response and Decision current exemption for APA members Current Regulatory Requirements FMCSA has determined that granting was extended to July 8, 2020, pursuant these exemptions to APA member- The HOS rule in 49 CFR 395.3(a)(2) to section 5206(b)(2)(A) of the Fixing companies will likely achieve a level of prohibits the driver of a property- America’s Surface Transportation safety equivalent to or greater than the carrying commercial motor vehicle (FAST) Act. Copies of the initial request level that compliance with the HOS (CMV) from driving after the 14th hour for an exemption from the 14-hour rule, rules would ensure. The Agency agrees after coming on duty following 10 subsequent renewal requests, and all consecutive hours off duty. Drivers with the APA that the operational public comments received may be required to prepare RODS must do so demands of this unique industry reviewed at www.regulations.gov under using ELDs. However, under 49 CFR minimize the risk of CMV crashes. 395.8(a)(1)(iii)(1), a motor carrier may docket numbers FMCSA–2005–21104 Generally, the CMV drivers covered by allow its drivers to record their duty and FMCSA–2007–28043. the exemption transport fireworks over status manually, rather than use an ELD, FMCSA granted APA’s application for relatively short routes from distribution if the driver is operating a CMV ‘‘[i]n a relief from the ELD rule on February 19, points to the site of the fireworks manner requiring completion of a record 2019, covering the Independence Day display, and normally do so in the of duty status on not more than 8 days celebrations for 2019 and 2020. A copy morning hours when drivers are less within any 30-day period.’’ of that request and the public comments likely to encounter heavy traffic and received are located at congestion. When the drivers arrive at Applicant’s Requests the work site, they spend most of their www.regulations.gov under docket time setting up the fireworks displays, APA requests temporary relief from number FMCSA–2018–0140. both provisions discussed above followed by several hours off duty in the because employees for its member V. Method To Ensure an Equivalent or late afternoon and early evening prior to companies need to drive CMVs after the Greater Level of Safety the event. During the off-duty breaks, end of the 14-hour period and because drivers are able to rest and nap, thereby the proposed exemption period from APA believes an equivalent level of reducing the risk of fatigue towards the June 28 through July 8 is 11 days long, safety will be achieved because the end of the work shift. Before beginning which exceeds the exception from the fireworks are transported over relatively another duty day, these drivers must ELD requirement (up to 8 days in a 30 short routes from distribution points to take 10 consecutive hours off duty, the consecutive-day period). APA explains the site of the fireworks display, and same as other CMV drivers. FMCSA that without the extra time each day normally in the morning when traffic is notes that the individuals spend very provided by the exemption from the 14- light. APA also believes that fatigued little time driving during any given hour rule, safety would decline because driving is reduced and/or eliminated work shift and they must adhere to the APA drivers would be unable to return because drivers spend considerable time weekly hours-of-service limits which to their home base after each show. installing, wiring, and safety-checking prohibit operating a CMV after They would be forced to park the CMVs the fireworks displays at the site, accumulating 60 hours on duty within carrying HM 1.1G, 1.3G and 1.4G followed by several hours off duty in the 7 consecutive days, or 70 hours on duty products in areas less secure than the late afternoon and early evening prior to within 8 consecutive days. motor carrier’s home base. Without the the event; during this time, the drivers FMCSA anticipates, and understands exemption from the ELD rule, these are allowed to rest or take a nap. from discussions with APA, that drivers companies would be required to Additionally, these drivers would will be unable to exceed the 14-hour purchase/lease ELD systems for a continue to use paper RODS in lieu of limit every night and yet still have time limited period of 11 days. an ELD during the designated to take 10 consecutive hours off duty. APA requests renewal of its HOS Independence Day periods. The But drivers may work long days exemptions from the 14-hour rule for 58 scheduled off duty time and use of followed by short days, alternating back of 61 member-companies included in RODS will ensure that fatigued driving and forth. Such arrangements will likely the 2016 through 2020 waivers or is managed. vary from company to company, exemptions and from the ELD rule for depending on event schedules. In any the same member companies included VI. Public Comments case, drivers and motor carriers in the 2019 through 2020 waivers or operating under the exemption remain On May 4, 2021, FMCSA published exemptions. The HOS exemptions or subject to the requirement for 10 waivers for 61 of its members expired notice of this application and requested consecutive hours off duty, and they on July 8, 2020. The current public comments (86 FR 23779). The must maintain records of duty status. applications cover 58 members that Agency received three comments, all With regard to ELDs, the current previously held exemptions and 2 opposing the exemptions. Miner’s Inc. regulations include an exception for additional member companies not said ‘‘No need to extend hours of motor carriers that are required to previously covered by the exemptions. service. Team drivers can keep the load prepare records of duty status for 8 days APA has removed 3 member companies moving. This can also be used for or less during a 30 consecutive day previously included in the 14-hour and livestock.’’ Another commenter, John period. However, the APA members in ELD relief from the list, leaving 60 of its Koglman, wrote, ‘‘14 hr. Mandatory question would need relief from the member companies applying for ELD, one or the other. Truckers are not requirements for 11 days. Therefore, the exemptions from the 14-hour rule and children, no safer highways [since] both exemption would only provide 3 the ELD rule. Copies of the 2021 rules have been in place. Too much additional days of relief beyond the requests are included in the docket money being allocated for enforcement, existing rule. The Agency does not referenced at the beginning of this not much spent to make truck driving believe safety will be decreased through notice. bearable . . .’’ The third commenter, the use of paper RODS and supporting Various APA members have held Joshua Hilton, asked, ‘‘What part of documents during the 3 additional days. waivers or exemptions during shall not be infringed do you not The carriers will be subject to the Independence Day periods from 2005 understand?’’ current record retention requirement,

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for the records generated during the 395.8(a)(1)(i) are effective from June 28 exemptions would be in effect, no State timeframe of this exemption and the through July 8, 2021, 11:59 p.m. local shall enforce any law or regulation Agency will have access to the RODS for time. applicable to interstate commerce that 6 months from the date the records were conflicts with or is inconsistent with the Terms and Conditions of the prepared including corresponding exemptions with respect to a firm or Exemptions supporting documents. The carriers also person operating under the exemptions. could be subject to civil penalties for The exemptions are limited to drivers States may, but are not required to, failure to maintain the RODS and employed by the 58 motor carriers adopt the same exemptions with respect supporting documents for the entire previously covered by the exemptions, to operations in intrastate commerce. period of the exemption and 6 months and drivers employed by the two Notification to FMCSA thereafter. additional carriers identified by an In addition, FMCSA has ensured that asterisk in the appendix table of this Exempt motor carriers are required to each motor carrier possesses an active notice. Drivers covered by these notify FMCSA within 5 business days of USDOT registration, minimum required exemptions will be able to exclude off- any accidents (as defined by 49 CFR levels of insurance as required by 49 duty and sleeper-berth time of any 390.5) involving the operation of any of CFR part 387, and is not subject to any length from the calculation of the 14- their CMVs while under these ‘‘imminent hazard’’ or other out-of- hour limit. Drivers will be able to use exemptions. The notification must be service (OOS) orders. The Agency paper RODs in lieu of ELDs to record made by email to [email protected] conducted a comprehensive review of their HOS. The conditions of these are and include the following information: the safety performance history on each as follows: a. Identifier of the Exemptions: • of the motor carriers listed in the Drivers must not drive more than 11 ‘‘APA’’; appendix table during the review hours after accumulating 14 hours on b. Date of the accident; process. As part of this process, FMCSA duty prior to beginning a new driving c. City or town, and State, in which reviewed its Motor Carrier Management period; the accident occurred, or which is • Drivers must have 10 consecutive Information System safety records, closest to the scene of the accident; hours off duty following 14 hours on including inspection and accident d. Driver’s name and driver’s license duty prior to beginning a new driving reports submitted to FMCSA by State State, number, and class; agencies. The motor carriers have period; • Drivers must use paper RODs, e. Co-Driver’s name and driver’s ‘‘satisfactory’’ safety ratings and valid license State, number, and class; Hazardous Materials Safety Permits. The maintain RODS for 6 months from the date the record is prepared, and make f. Vehicle company number and member carriers may be subject to power unit license plate State and investigations prior to future renewal of RODS accessible to law enforcement upon request; number; the exemption. • g. Number of individuals suffering FMCSA acknowledges the concerns of Drivers subject to the ELD physical injury; commenters and has decided to limit requirements prior to June 28 must h. Number of fatalities; the exemption to the 2021 continue to use ELDs, maintain ELD Independence Day season, rather than data for 6 months from the date the i. The police-reported cause of the granting a multi-year exemption as electronic record is generated, and make accident; requested by APA. The Agency will ELD data accessible to law enforcement j. Whether the driver was cited for review the impact of the exemption upon request; and violation of any traffic laws, or motor • The carriers and drivers must following the 2021 Independence Day carrier safety regulations; and comply with all other requirements of Celebration and seek public comment k. The total driving time and the total the Federal Motor Carrier Safety whether similar relief should be granted on-duty time of the CMV driver at the Regulations (49 CFR parts 350–399) and in future years, if requested by APA. time of the accident. Hazardous Materials Regulations (49 In addition, if there are any injuries or VIII. Terms and Conditions of the CFR parts 105–180). fatalities, the carrier must forward the Exemptions Preemption police accident report to MCPSD@ DOT.GOV as soon as available. Period of the Exemption In accordance with 49 U.S.C. The requested HOS exemptions from 31315(d), as implemented by 49 CFR Meera Joshi, 49 CFR 395.3(a)(2) and 49 CFR 381.600, during the period these Deputy Administrator.

APPENDIX TO NOTICE OF APPLICATIONS FOR RENEWAL OF APA EXEMPTIONS FROM THE 14-HOUR AND ELD HOS RULES FOR INDEPENDENCE DAY PERIODS JUNE 28, 2021 THROUGH JULY 8, 2021 FOR 60 MOTOR CARRIERS

Motor carrier Street address City, state, zip code DOT No.

1. American Fireworks Company ...... 7041 Darrow Road ...... Hudson, OH 44236 ...... 103972 2. American Fireworks Display, LLC ...... 105 County Route 7 ...... McDonough, NY 13801 ...... 2115608 3. AM Pyrotechnics, LLC ...... 2429 East 535th Rd ...... Buffalo, MO 65622 ...... 1034961 4. Arthur Rozzi Pyrotechnics ...... 6607 Red Hawk Ct ...... Maineville, OH 45039 ...... 2008107 5. Artisan Pyrotechnics, Inc ...... 82 Grace Road ...... Wiggins, MS 39577 ...... 1898096 6. * Atlas Importers, Inc ...... 1570 S Hwy. 501 ...... Marion, SC 29571 ...... 449827 7. Atlas PyroVision Entertainment 136 Sharon Road ...... Jaffrey, NH 03452 ...... 789777 Group, Inc. 8. Celebration Fireworks, Inc ...... 7911 7th Street ...... Slatington, PA 18080 ...... 1527687 9. Central States Fireworks, Inc ...... 18034 Kincaid Street ...... Athens, IL 62613 ...... 1022659 10. * Dominion Fireworks, Inc ...... 669 Flank Road ...... Petersburg, VA 23805 ...... 540485 11. Falcon Fireworks ...... 3411 Courthouse Road ...... Guyton, GA 31312 ...... 1037954 12. Fireworks & Stage FX America ...... 12650 Hwy 67S, Suite B ...... Lakeside, CA 92040 ...... 908304

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APPENDIX TO NOTICE OF APPLICATIONS FOR RENEWAL OF APA EXEMPTIONS FROM THE 14-HOUR AND ELD HOS RULES FOR INDEPENDENCE DAY PERIODS JUNE 28, 2021 THROUGH JULY 8, 2021 FOR 60 MOTOR CARRIERS—Continued

Motor carrier Street address City, state, zip code DOT No.

13. Fireworks by Grucci, Inc ...... 20 Pinehurst Drive ...... Bellport, NY 11713 ...... 324490 14. Legal Aluminum King Mfg., Ltd. dba 700 E Van Buren Street ...... Mitchell, IA 50461 ...... 420413 Flashing. 15. Gateway Fireworks Displays ...... P.O. Box 39327 ...... St Louis, MO 63139 ...... 1325301 16. Great Lakes Fireworks ...... 24805 Marine ...... Eastpointe, MI 48021 ...... 1011216 17. Hale Artificier, Inc ...... 3185 East US Highway 64 ...... Lexington, NC 27292 ...... 981325 18. Hamburg Fireworks Display, Inc ...... 2240 Horns Mill Road SE ...... Lancaster, OH ...... 395079 19. Hawaii Explosives & Pyrotechnics, 17–7850 N Kulani Road ...... Mountain View, HI 96771 ...... 1375918 Inc. 20. Hollywood Pyrotechnics, Inc ...... 1567 Antler Point ...... Eagan, MN 55122 ...... 1061068 21. Mike Eicher, dba Homeland Fire- 5235 John Day Hwy ...... Jamieson, OR 97909 ...... 1377525 works, Inc. 22. International Fireworks Mfg. Com- 242 Sycamore Road ...... Douglassville, PA 19518 ...... 385065 pany. 23. J&J Computing dba Fireworks Ex- 174 Route 17 North ...... Rochelle Park, NJ 07662 ...... 2064141 travaganza. 24. J&M Displays, Inc ...... 18064 170th Ave ...... Yarmouth, IA 52660 ...... 377461 25. Johnny Rockets Fireworks Display 3240 Love Rock ...... Steger, IL 60475 ...... 1263181 Company. 26. Lantis Fireworks, Inc ...... 130 Sodrac Dr., Box 229 ...... N Sioux City, SD 57049 ...... 534052 27. Las Vegas Display Fireworks, Inc .... 4325 West Reno Ave ...... Las Vegas, NV 89118 ...... 3060878 28. Legion Fireworks Co., Inc ...... 10 Legion Lane ...... Wappingers Falls, NY 12590 ...... 554391 29. Magic in the Sky, LLC ...... 27002 Campbellton Road ...... San Antonio, TX 78264 ...... 2134163 30. Martin & Ware Inc. dba Pyro City P.O. Box 322 ...... Hallowell, ME 04347 ...... 734974 Maine & Central Maine Pyrotechnics. 31. Miand Inc. dba Planet Productions P.O. Box 294, 3999 Hupp Road R31 ...... Kingsbury, IN 46345 ...... 777176 (Mad Bomber) bBoBBomberBomber). 32. Melrose Pyrotechnics, Inc ...... 1 Kingsbury Industrial Park ...... Kingsbury, IN 46345 ...... 434586 33. Montana Display Fireworks, Inc ...... 9480 Inspiration Road ...... Missoula, MT 59808 ...... 1030231 34. Pyro Shows, Inc ...... 115 N 1st Street ...... LaFollette, TN 37766 ...... 456818 35. Pyro Shows of Alabama, Inc ...... 3325 Poplar Lane ...... Adamsville, AL 35005 ...... 2859710 36. Pyro Shows of Texas, Inc ...... 6601 9 Mile Azle Rd...... Fort Worth, TX 76135 ...... 2432196 37. Pyro Spectaculars, Inc ...... 3196 N Locust Ave ...... Rialto, CA 92376 ...... 029329 38. Pyro Spectaculars North, Inc ...... 5301 Lang Avenue ...... McClellan, CA 95652 ...... 1671438 39. Pyrotechnic Display, Inc ...... 8450 W St. Francis Rd...... Frankfort, IL 60423 ...... 1929883 40. Pyrotecnico Fireworks Inc ...... 299 Wilson Rd ...... New Castle, PA 16105 ...... 526749 41. Pyrotecnico FX, LLC ...... 6965 Speedway Blvd. Suite 115 ...... Las Vegas, NV 89115 ...... 1610728 42. Rainbow Fireworks, Inc ...... 76 Plum Ave ...... Inman, KS 67546 ...... 1139643 43. RES Specialty Pyrotechnics dba 21595 286th St ...... Belle Plaine, MN 56011 ...... 523981 RES Pyro. 44. RKM Fireworks Company ...... 27383 May St ...... Edwardsburg, MI 49112 ...... 1273436 45. Rozzi’s Famous Fireworks, Inc ...... 118 Karl Brown Way ...... Loveland, OH 45140 ...... 0483686 46. Santore’s World Famous Fireworks, 846 Stillwater Bridge Road ...... Schaghticoke, NY 12154 ...... 2574135 LLC. 47. Sky Wonder Pyrotechnics, LLC ...... 3626 CR 203 ...... Liverpool, TX 77577 ...... 1324580 48. Sorgi American Fireworks Michigan, 935 Wales Ridge Rd ...... Wales, MI 48027 ...... 02475727 LLC. 49. Southern Sky Fireworks, LLC ...... 6181 Denham Rd ...... Sycamore, GA 31790–2603 ...... 3168056 50. Spielbauer Fireworks Co, Inc ...... 1976 Lane Road ...... Green Bay, WI 54311 ...... 046479 51. Spirit of 76, LLC ...... 6401 West Hwy 40 ...... Columbia, MO 65202 ...... 2138948 52. Starfire Corporation ...... 682 Cole Road ...... Carrolltown, PA 15722 ...... 554645 53. Vermont Fireworks Co., dba 2235 Vermont Route 14 South ...... East Montpelier, VT 05651 ...... 310632 Northstar Fireworks Co., Inc. 54. Wald & Company All American Dis- 16004 South State 291 Highway ...... Greenwood, MO 64034 ...... 87079 play Fireworks Company. 55. Western Display Fireworks, Ltd ...... 10946 S New Era Rd ...... Canby, OR 97013 ...... 498941 56. Western Enterprises, Inc ...... 13513 W Carrier Rd ...... Carrier, OK 73727 ...... 203517 57. Wolverine Fireworks Display, Inc ..... 205 W Seidlers ...... Kawkawlin, MI ...... 376857 58. Young Explosives Corp ...... 2165 New Michigan Rd ...... Canandaigua, NY 14618 ...... 450304 59. Zambelli Fireworks MFG, Co., Inc ... 120 Marshall Drive ...... Warrendale, PA 15086 ...... 033167 60. ZY Pyrotechnics, LLC dba 1014 Slocum Road ...... Wapwallopen, PA 18660 ...... 2149202 Skyshooter Displays, Inc.

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[FR Doc. 2021–13892 Filed 6–29–21; 8:45 am] A. Program Description technical or financing plans, for project BILLING CODE 4910–EX–P The Areas of Persistent Poverty investments that either proactively Program provides funds to eligible addresses racial equity and barriers to recipients or subrecipients under Title opportunity, including automobile DEPARTMENT OF TRANSPORTATION 49 U.S.C. Sections 5307, 5310, or 5311 dependence as a form of barrier, or redress prior inequities and barriers to Federal Transit Administration located in areas of persistent poverty. Funding to implement the Areas of opportunity. Fiscal Year 2021 Competitive Funding Persistent Poverty Program was B. Federal Award Information appropriated by the Further Opportunity: Areas of Persistent FTA intends to award all available Consolidated Appropriations Act, 2020 Poverty Program funding (approximately $16.26 million) (Pub. L. 116–94, Dec. 20, 2019) and the in the form of grants to selected Consolidated Appropriations Act, 2021 SUMMARY: Federal Transit applicants responding to this NOFO. (Pub. L. 116–260, Dec. 27, 2020), and Administration (FTA), U.S. Department Additional funds made available for this will be awarded through a competitive of Transportation (DOT). program prior to project selection may process, as described in this notice. This be allocated to eligible projects. Funds SUMMARY: Notice of funding funding opportunity is occurring under will remain available for obligation for opportunity (NOFO). Federal Assistance Listing number four fiscal years, not including the year 20.505. SUMMARY: The Federal Transit FTA will award grants to eligible in which the funds are allocated to Administration (FTA) announces the applicants for planning, engineering, or projects. opportunity to apply for $16,259,614 in development of technical or financing Only proposals from eligible funding from Fiscal Year (FY) 2020 plans for projects eligible under Chapter recipients for eligible activities will be ($39,614) and FY 2021 ($16,220,000) for 53 of title 49, United States Code. considered for funding. FTA anticipates the Areas of Persistent Poverty Program Applicants are encouraged to work with a maximum grant award not to exceed (Federal Assistance Listing: 20.505). As non-profits or other entities of their $850,000. In response to a NOFO that closed on required by law, funds will be awarded choosing to develop an eligible project. May 4, 2020, FTA received applications competitively for planning, engineering, An eligible project for this NOFO is for 28 eligible projects requesting a total or development of technical or defined as a planning study (including of $11,062,307. Of the 28 projects, 25 financing plans for projects that assist a planning and environmental linkages projects were selected and funded for a areas of persistent poverty. FTA may study that advances the environmental total of $8.46 million. award additional funds if they are made analysis and review process as part of available to the program prior to the the metropolitan planning process), an C. Eligibility Information announcement of project selections. engineering study, a technical study, or 1. Eligible Applicants DATES: Complete proposals must be a financial plan. submitted electronically through the This program supports FTA’s strategic Eligible applicants include States, GRANTS.GOV ‘‘APPLY’’ function by goals and objectives through the timely tribes, and designated or direct 11:59 p.m. Eastern Time on August 30, and efficient investment in public recipients eligible under 49 U.S.C. 5307, 2021. Prospective applicants should transportation. This program also 49 U.S.C. 5310, or 49 U.S.C. 5311 that initiate the process by registering on the supports the Biden-Harris are located in areas of persistent GRANTS.GOV website immediately to Administration’s agenda to mobilize poverty. State departments of ensure completion of the application American ingenuity to build modern transportation may apply on behalf of process before the submission deadline. infrastructure and an equitable, clean eligible applicants within their States. Instructions for applying can be found energy future. By supporting increased Applicants are also encouraged to work on FTA’s website at http:// transit access for environmental justice with non-profit organizations. For the funding made available in FY transit.dot.gov/howtoapply and in the (EJ) populations (see FTA Circular 2021, eligible projects must be located: ‘‘FIND’’ module of GRANTS.GOV. The 4703.1), equity-focused community (1) In a county that had greater than or funding opportunity ID is FTA–2021– outreach, public engagement of equal to 20 percent of the population 005–TPE. Mail and fax submissions will underserved communities, adoption of living in poverty over the 30-year period not be accepted. equity-focused policies, reducing greenhouse gas emissions, and preceding the date of enactment of the FOR FURTHER INFORMATION CONTACT: addressing the effects of climate change, Consolidated Appropriations Act, 2021 Tonya P. Holland, FTA Office of FTA’s Areas of Persistent Poverty (Pub. L. 116–260, December 27, 2020), Planning and Environment, 202–493– Program advances the goals of Executive as measured by the 1990 and 2000 0283, or [email protected]. A TDD Order 13985: Advancing Racial Equity decennial census and the most recent is available at 1–800–877–8339 (TDD/ and Support for Underserved Small Area Income and Poverty FIRS). Communities Through the Federal Estimates, or (2) in a census tract with Government; Executive Order 13990: a poverty rate of at least 20 percent as SUPPLEMENTARY INFORMATION: Protecting Public Health and the measured by the 2014–2018 five-year Table of Contents Environment and Restoring Science to data series available from the American Tackle the Climate Crisis; and Executive Community Survey of the Bureau of the A. Program Description Order 14008: Tackling the Climate Census; or (3) in any territory or B. Federal Award Information Crisis at Home and Abroad. possession of the United States. Use this C. Eligibility Information D. Application and Submission Information FTA seeks to use the Areas of link to confirm that your proposed E. Application Review Information Persistent Poverty Program to encourage project is in an Area of Persistent F. Federal Award Administration racial equity in two areas: (1) Planning Poverty and document that in the Information and policies related to racial equity and Supplemental Form to the application— G. Federal Awarding Agency Contacts barriers to opportunity; and (2) https://datahub.transportation.gov/ H. Other Information engineering, or development of stories/s/tsyd-k6ij.

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For the funding made available in FY service agreement with a State or local grants/applicants.html, along with 2020, eligible projects must be located: social service agency or private social specific instructions for the forms and (1) In a county that consistently had 20 service organization; revenues generated attachments required for submission. percent or more of the population living from value capture financing The Standard Form 424 (SF–424), in poverty over the 30-year period mechanisms; or funds from an Application for Federal Assistance, preceding the date of enactment of the undistributed cash surplus; replacement which must be included with every Further Consolidated Appropriations or depreciation cash fund or reserve; or application, can be downloaded from Act, 2020 (Pub. L. 116–94, Dec. 20, new capital. In addition, transportation GRANTS.GOV. Mail and fax 2019), as measured by the 1990 and development credits or documentation submissions will not be accepted. 2000 decennial census and the most of in-kind match may be used as local A complete proposal submission recent Small Area Income and Poverty match if identified and documented in consists of two forms: The SF–424 Estimates, or (2) in a census tract with the application. Application for Federal Assistance a poverty rate of at least 20 percent as (downloaded from GRANTS.GOV) and 3. Eligibility Criteria measured by the 2013–2017 five-year the Supplemental Form for the FY 2021 data series available from the American i. Eligible Activities Areas of Persistent Poverty Program Community Survey of the Bureau of the Under the Areas of Persistent Poverty (downloaded from GRANTS.GOV or the Census. Program, eligible projects are planning, FTA website at https:// Given the small amount of FY 2020 engineering, or development of www.transit.dot.gov). Failure to submit funding available, eligible applicants for technical or financing plans for projects the information as requested can delay FY 2020 funds must also meet the eligible under Chapter 53 of title 49, review or disqualify the application. eligibility requirements for funding in United States Code. For example, these FY 2021 in order to receive available FY 2. Content and Form of Application activities may include planning, Submission 2020 funding. Eligible applicants must engineering, or development of be able to demonstrate the requisite technical or financing plans for Proposals must include a completed legal, financial, and technical improved transit services; new transit SF–424 Application for Federal capabilities to receive and administer routes; engineering for transit facilities Assistance form and the following Federal funds under this program. and improvements to existing facilities; attachments to the completed SF–424: As described in the Appropriations i. A completed Applicant and innovative technologies; low or no Acts, applicants are encouraged to work Proposal Profile supplemental form for emission buses or a new bus facility or with non-profits or other entities of their the Areas of Persistent Poverty Program intermodal center that supports transit choosing to develop planning, technical, (Supplemental Form) found on the FTA services; integrated fare collections engineering, or financing plans, and website at https://www.transit.dot.gov. systems; or coordinated public transit applicants are encouraged to partner The information on the Supplemental human service transportation plans to with non-profits that can assist with Form will be used to determine improve transit service in an area of making projects low or no emissions. If applicant and project eligibility for the persistent poverty or to provide new an application that involves such a program, and to evaluate the proposal service such as transportation for partnership is selected for funding, the against the selection criteria described services to address the opioid epidemic, selection process for the non-profit or in part E of this notice; other nongovernmental partners must as well as increase access to ii. A map of the proposed study area satisfy the requirements for a environmental justice populations, with which to confirm alignment competitive procurement under 49 while reducing greenhouse gas between the proposed study area and U.S.C. 5325(a). A competitive selection emissions and the effects of climate areas of persistent poverty; process conducted by the applicant change. An eligible project also may be iii. Documentation of any prior to applying for an Area of a planning and environmental linkages partnerships between the applicant and Persistent Poverty award will be study that advances the environmental other organizations to carry out the deemed to satisfy the requirements of 49 analysis and review process as part of proposed activities. Documentation may U.S.C. 5325(a) for the named entities. the metropolitan planning process. consist of a memorandum of agreement Applicants are advised that any changes ii. Ineligible Activities or letter of intent signed by all parties that describes the parties’ roles and to the proposed partnership will require It is important to note that capital, responsibilities in the proposed project; written FTA approval, must be maintenance, or operating costs of any consistent with the scope of the and type are, not eligible for funding under iv. Documentation of any funding approved project, and may necessitate a the Areas of Persistent Poverty Program. competitive procurement. commitments for the proposed work. Procurement of vehicles or equipment FTA will accept only one 2. Cost Sharing or Matching and support of the operation and Supplemental Form per SF–424 The minimum Federal share for maintenance of systems also are submission. FTA encourages States and projects selected under the Areas of ineligible activities. other applicants to consider submitting Persistent Poverty Program is 90 percent D. Application and Submission a single Supplemental Form that of the net total project cost (i.e., the local Information includes multiple activities to be share will be no more than 10 percent evaluated as a consolidated proposal. If of the net total project cost, not 10 1. Address To Request Application a State or other applicant chooses to percent of the requested grant amount). Package submit separate proposals for individual Eligible sources of local match The application package may be consideration by FTA, each proposal include the following: Cash from non- obtained from GRANTS.GOV. must be submitted using a separate SF– Government sources other than Applications must be submitted 424 and Supplemental Form. revenues from providing public electronically through GRANTS.GOV. Applicants may attach additional transportation services; revenues General information for submitting supporting information to the SF–424 derived from the sale of advertising and applications through GRANTS.GOV can submission, including but not limited to concessions; amounts received under a be found at https://www.grants.gov/web/ letters of support, project budgets, fleet

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status reports, or excerpts from relevant 10. Document the matching funds, (3) continue to maintain an active SAM planning documents. Supporting including the amount and source of the registration with current information at documentation must be described and match (may include local or private all times during which the applicant has referenced by file name in the sector financial participation in the an active Federal award or an appropriate response section of the project). Describe whether the matching application or plan under consideration Supplemental Form, or it may not be funds are committed or planned, and by FTA. FTA may not make an award reviewed. include documentation of the until the applicant has complied with Information such as the applicant’s commitments. all applicable unique entity identifiers name, Federal amount requested, local 11. Provide an explanation of the and SAM requirements. If an applicant match amount, and description of the scalability of the project. has not fully complied with the study area are requested in varying 12. Address whether other Federal requirements by the time FTA is ready degrees of detail on both the SF–424 funds have been sought or received for to make an award, FTA may determine form and Supplemental Form. the comprehensive planning project. that the applicant is not qualified to Applicants must fill in all fields unless 13. Provide a schedule and process for receive an award and use that stated otherwise on the forms. the project that includes anticipated determination as a basis for making a Applicants should use both the ‘‘Check dates for incorporating the project into Federal award to another applicant. Package for Errors’’ and the ‘‘Validate the region’s unified planning work These requirements do not apply if the Form’’ buttons on both forms to check program, completing major tasks and applicant is an individual or has an all required fields and to ensure that the substantial deliverables, and completing exemption approved by FTA or the U.S. Federal and local amounts specified are the project. Office of Management and Budget consistent. In the event of errors with 14. Describe how the proposed project pursuant to 2 CFR 25.110(c) or (d). SAM the Supplemental Form, FTA advances the metropolitan registration takes approximately 3–5 recommends saving the form on your transportation plan of the metropolitan business days, but FTA recommends computer and ensuring that JavaScript planning organization or the statewide allowing ample time, up to several is enabled in your PDF editor. The long-range plan prepared by the State weeks, for completion of all steps. For information listed below MUST be department of transportation. additional information on obtaining a included on the SF–424 and 15. Propose performance criteria for unique entity identifier, please visit Supplemental Form for Areas of the development and implementation of https://www.sam.gov. Persistent Poverty Program funding the proposed activities funded under Non-Federal entities that have applications. the Areas of Persistent Poverty Program. received a Federal award are required to The SF–424 Mandatory Form and the 16. Identify potential State, local, or report certain civil, criminal, or Supplemental Form will prompt other impediments to the deliverables of administrative proceedings to SAM applicants for the following items: the Areas of Persistent Poverty-funded (currently the Federal Awardee 1. Provide the name of the lead work and their implementation, and Performance and Integrity Information applicant and, if applicable, the specific how the impediments will be addressed. System (FAPIIS) to ensure registration co-sponsors submitting the application. 17. Describe how the proposed information is current and to comply 2. Provide the applicant’s Dun and activities address climate change. with federal requirements. Applicants Bradstreet Data Universal Numbering Applicants should identify any air should refer to 2 CFR 200.113 for more System (DUNS) number. quality nonattainment or maintenance information. areas under the Clean Air Act in the 3. Provide contact information 4. Submission Dates and Times including: Contact name, title, address, planning or study area. Nonattainment phone number, and email address. or maintenance areas should be limited Project proposals must be submitted 4. Specify the Congressional district(s) to the following applicable National electronically through GRANTS.GOV by where the planning project will take Ambient Air Quality Standards criteria 11:59 p.m. eastern time August 30, place. pollutants: Carbon monoxide, ozone, 2021. GRANTS.GOV attaches a 5. Identify the project title and project and particulate matter 2.5 and 10. The timestamp to each application at the scope to be funded, including U.S. Environmental Protection Agency’s time of submission. Proposals submitted anticipated substantial deliverables and Green Book (available at https:// after the deadline will be considered the milestones for when they will be www.epa.gov/green-book) is a publicly- only under extraordinary circumstances provided to FTA. available resource for nonattainment not under the applicant’s control. Mail 6. Identify and describe the eligible and maintenance area data. This and fax submissions will not be project that meets the requirements of consideration will further the goals of accepted. Section C, subsection 3 of this notice, Executive Order 13990: Protecting Within 48 hours after submitting an including a detailed description of the Public Health and the Environment and electronic application, the applicant need for planning, engineering, or Restoring Science to Tackle the Climate should receive two email messages from development of technical, or financial Crisis, and Executive Order 14008: GRANTS.GOV: (1) Confirmation of planning activities. Tackling the Climate Crisis at Home and successful transmission to 7. Address each evaluation criterion Abroad. GRANTS.GOV; and (2) confirmation of separately, demonstrating how the 18. Describe how the proposed successful validation by GRANTS.GOV. project responds to each criterion as activities address environmental justice FTA will then validate the application described in Section E and how the populations, racial equity, and barriers and will attempt to notify any project will support the Areas of to opportunity. applicants whose applications could not Persistent Poverty Program objectives. be validated. If the applicant does not 8. Provide a line-item budget for the 3. Unique Entity Identifier and System receive confirmation of successful project, with enough detail to indicate for Award Management (SAM) validation or a notice of failed the various key components of the Each applicant is required to: (1) Be validation or incomplete materials, the project. registered in SAM before submitting an applicant must address the reason for 9. Identify the Federal amount application; (2) provide a valid unique the failed validation, as described in the requested. entity identifier in its application; and email notice, and resubmit before the

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submission deadline. If making a Applicants are encouraged to identify unmet needs, promote emissions resubmission for any reason, include all scaled funding options in case reductions, reduce barriers to affordable original attachments regardless of which insufficient funding is available to fund housing, address racial equity and attachments were updated, and check a project at the full requested amount. reduce barriers to opportunity, and the box on the Supplemental Form If an applicant indicates that a project support environmental justice indicating this is a resubmission. An is scalable, the applicant must provide populations. The following factors will application that is submitted at the either (1) a minimum Federal funding be considered: deadline and cannot be validated will amount (not less than 90 percent of the i. System Condition. FTA will be marked as incomplete, and such net total project cost); or (2) a reduced evaluate the potential for the planning, applicants will not receive additional net total project cost and minimum engineering, or development of time to re-submit. Federal funding amount (not less than technical or financing plans to lead to FTA urges applicants to submit their 90 percent of the reduced net total an improvement in the condition of the applications at least 96 hours prior to project cost) that will fund an eligible transit system in areas of persistent the due date to allow time to receive the project that achieves the objectives of poverty. validation messages and to correct any the program and meets all relevant ii. Service Reliability. FTA will problems that may have caused a program requirements. The applicant evaluate the potential for the planning, rejection notification. GRANTS.GOV must provide a clear explanation of how engineering, or development of scheduled maintenance and outage the project would be affected by a technical or financing plans to lead to times are announced on the reduced award. FTA may award a lesser a reduction in the frequency of GRANTS.GOV website. Deadlines will amount whether a scalable option is breakdowns or other service not be extended due to scheduled provided. interruptions caused by the age and maintenance or outages. All applications must be submitted condition of the agency’s transit vehicle Applicants are encouraged to begin via the GRANTS.GOV website. FTA fleet, and improve system reliability. the registration process on the does not accept applications on paper, iii. Enhanced Access and Mobility. FTA will evaluate the potential for the GRANTS.GOV site well in advance of by fax machine, email, or other means. planning, engineering, or development the submission deadline. Registration in For information on application of technical or financing plans to lead GRANTS.GOV is a multi-step process, submission requirements, please see to improved access and mobility for the which may take several weeks to Section D.1., Address to Request transit riding public, such as through complete before an application can be Application, and Section D.4., increased reliability, improved submitted. Applicants who are already Submission Dates and Times. registered in GRANTS.GOV may be headways, creation of new required to take steps to keep their E. Application Review Information transportation choices, or eliminating gaps in the current route network. registration up to date before 1. Criteria submissions can be made successfully: iv. Accelerating Innovation. FTA will (1) Registration in the System for Award Project proposals will be evaluated evaluate the potential for the planning, Management (SAM) is renewed primarily on the responses provided in engineering, or development of annually, and (2) persons making the Supplemental Form. Additional technical or financing plans to submissions on behalf of the Authorized information may be provided to support accelerate the introduction of innovative Organization Representative (AOR) the responses; however, any additional technologies or practices such as must be authorized in GRANTS.GOV by documentation must be directly integrated fare payment systems the AOR to make submissions. referenced on the Supplemental Form, permitting complete trips or including the file name where the advancements to propulsion systems. 5. Funding Restrictions additional information can be found. Innovation can also include practices See Section C of this NOFO for Applications will be evaluated based on such as new public transportation detailed eligibility requirements. Funds the quality and extent to which the operational models, financial or under this NOFO cannot be used to following evaluation criteria are procurement arrangements, or value reimburse applicants for otherwise addressed. capture strategies. eligible expenses incurred prior to an v. Emissions Reductions. FTA will a. Demonstration of Need FTA award of a grant agreement unless evaluate the potential for the planning FTA has issued pre-award authority for Applications will be evaluated based study, engineering study, or selected projects. Refer to Section C.3 of on the quality and extent to which they development of technical or financing this NOFO (Eligible Projects) for demonstrate how the proposed activities plans to identify proposed actions that information on activities that are will support planning, engineering, or will reduce greenhouse gas and other eligible for funding under this grant development of technical or financing harmful pollutants and/or improve program. Allowable direct and indirect plans that would result in a project resilience to climate change. expenses must be consistent with the eligible for funding under Chapter 53 of vi. Barriers to Low Income Housing. government-wide Uniform Title 49, United States Code. FTA will evaluate the degree to which the planning study, engineering study, Administrative Requirements and Cost b. Demonstration of Benefits Principles (2 CFR part 200) and FTA or development of technical or financial Circular 5010.1E. Applications will be evaluated based plans identify proposed actions that on how well they describe how the reduce regulatory barriers that 6. Other Submission Requirements proposed planning, engineering, or unnecessarily raise the costs of housing The minimum Federal share for development of technical or financing development or impede the projects selected under the Areas of plans address the existing condition of development of affordable housing. Persistent Poverty Program is 90 percent the transit system, improve the vii. Racial Equity and Barriers to of the net total project cost (i.e., the local reliability of transit service for its riders, Opportunity. FTA will evaluate the share will be no more than 10 percent enhance access and mobility within the extent to which the planning study, of the net total project cost, not 10 service area, accelerate innovation in engineering study, or development of percent of the requested grant amount). areas of persistent poverty to serve technical or financial plans either

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proactively address racial equity and iii. The partnerships’ technical when completing the review of risk barriers to opportunity, including capability to develop, adopt, and posed by applicants as described in 2 automobile dependence as a form of implement the plans, based on FTA’s CFR 200.206 Federal awarding agency barrier, or redress prior inequities and assessment of the applicant’s review of risk posed by applicants. barriers to opportunity. FTA also will description of the policy formation, F. Federal Award Administration consider the extent to which implementation, and financial roles of Information applications incorporate such activities the partners, and the roles and as equity-focused community outreach responsibilities of proposed staff. 1. Federal Award Notice and public engagement of underserved e. Technical, Legal, and Financial The FTA Administrator will communities in the planning process, Capacity and adoption of an equity and inclusion announce the final project selections on program/plan or equity-focused Applicants must demonstrate that the FTA website. Project recipients policies. they have the technical, legal, and should contact their FTA Regional viii. Environmental Justice. FTA will financial capacity to undertake the Offices for additional information evaluate the extent to which the project. FTA will review relevant regarding allocations for projects under planning study, engineering study, or oversight assessments and records to the Areas of Persistent Poverty Program. determine whether there are any development of technical or financial i. Pre-Award Authority plans will support increased access to outstanding legal, technical, or financial transit for environmental justice issues with the applicant that would FTA will issue specific guidance to populations and engages such affect the outcome of the proposed recipients regarding pre-award authority populations in plan or study project. Applicants with unresolved at the time of selection. FTA does not development. See FTA Circular 4703.1, legal, technical or financial compliance provide pre-award authority for ‘‘Environmental Justice Policy Guidance issues from an FTA compliance review competitive funds until projects are For Federal Transit Administration or Federal grant-related Single Audit selected and even then, there are Recipients.’’ finding must explain how corrective Federal requirements that must be met actions taken will mitigate negative ix. Regional Support. Applicants before costs are incurred. Funds under impacts on the proposed project. should provide evidence of regional or this NOFO cannot be used to reimburse local support for the proposed project. 2. Review and Selection Process applicants for otherwise eligible expenses incurred prior to FTA award Documentation may include support In addition to other FTA staff that letters from local and regional planning of a Grant Agreement until FTA has may review the proposals, a technical issued pre-award authority for selected organizations, local governmental evaluation committee will verify each officials, public agencies, and/or non- projects, or unless FTA has issued a proposal’s eligibility and evaluate ‘‘Letter of No Prejudice’’ for the project profit or private sector partners attesting proposals based on the published to the need for the project. before the expenses are incurred. For evaluation criteria. Members of the more information about FTA’s policy on c. Funding Commitments technical evaluation committee and pre-award authority, please see the most other FTA staff may request additional Applicants must identify the source of recent Apportionment Notice at: https:// information from applicants, if www.transit.dot.gov. the non-Federal cost-share and describe necessary. Taking into consideration the whether such funds are currently findings of the technical evaluation ii. Grant Requirements available for the project, or will need to committee, the FTA Administrator will If selected, awardees will apply for a be secured if the project is selected for determine the final selection of projects grant through FTA’s Transit Award funding. FTA will consider the for program funding. Management System (TrAMS). availability of the local cost-share as Among the factors in determining the Recipients of Areas of Persistent Poverty evidence of local financial commitment allocation of program funds, FTA may Program funds are subject to the grant to the project. Additional consideration consider geographic diversity and the requirements of the Section 5303 will be given to those projects for which applicant’s receipt of other competitive Metropolitan Planning program, local funds have already been made awards. FTA may also consider capping including those of FTA Circular available or reserved. Applicants should the amount a single applicant may 8100.1D and Circular 5010.1E. All submit evidence of the availability of receive. funds for the project (e.g., by including competitive grants, regardless of the a board resolution, letter of support 3. Federal Awardee Performance and award amount, will be subject to the from the State, a budget document Integrity Information System Check Congressional Notification and release highlighting the line item or section Prior to making an award, FTA is process. Technical assistance regarding committing funds to the proposed required to review and consider any these requirements is available from project, or other documentation of the information about the applicant that is each FTA regional office. source of non-Federal funds). in the Federal Awardee Performance When applying for an award under d. Project Implementation Strategy and Integrity Information Systems this Program, eligible applicants and (FAPIIS) accessible through SAM. An sub-recipients who are not direct FTA will evaluate the strength of the applicant may review and comment on recipients, or who have limited work plan, schedule, and process information about itself that a Federal experience or access to FTA’s Transit included in an application based on the awarding agency previously entered. Award Management System (TrAMS), following factors: FTA will consider any comments by the must secure the commitment of an i. Extent to which the schedule applicant, in addition to the other active FTA direct recipient to apply for contains sufficient detail, identifies all information in the designated integrity funding on their behalf through TrAMS steps needed to implement the work and performance system, in making a if they are selected for an Areas of proposed, and is achievable; judgment about the applicant’s integrity, Persistent Poverty funding award. ii. Extent of partnerships, including business ethics, and record of Documentation of such a commitment with non-public sector entities; and performance under Federal awards must be included in the application.

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2. Administrative and National Policy regional office at the corresponding SUMMARY: The Department of the Requirements milestones. Treasury, as part of its continuing effort As part of completing the annual to reduce paperwork and respondent i. Planning certifications and assurances required of burden, invites the general public and FTA encourages applicants to notify FTA grant recipients, a successful other Federal agencies to take this the appropriate metropolitan planning applicant must report on the suspension opportunity to comment on proposed organizations in areas likely to be served or debarment status of itself and its and/or continuing information by the funds made available under this principals. If the award recipient’s collections, as required by the program. Selected projects must be active grants, cooperative agreements, Paperwork Reduction Act of 1995. incorporated into the unified planning and procurement contracts from all Currently the Bureau of the Fiscal work programs of metropolitan areas Federal awarding agencies exceed Service within the Department of the before they are eligible for FTA funding $10,000,000 for any period of time Treasury is soliciting comments or pre-award authority. during the period of performance of an concerning the Claim Against the award made pursuant to this Notice, the United States for the Proceeds of a ii. Standard Assurances recipient must comply with the Government Check. The applicant assures that it will Recipient Integrity and Performance DATES: Written comments should be comply with all applicable Federal Matters reporting requirements received on or before August 30, 2021 statutes, regulations, executive orders, described in Appendix XII to 2 CFR part to be assured of consideration. directives, FTA circulars, and other 200. ADDRESSES: Direct all written comments Federal administrative requirements in G. Federal Awarding Agency Contacts and requests for additional information carrying out any project supported by to Bureau of the Fiscal Service, Bruce A. the FTA grant. The applicant For program-specific questions, please Sharp, Room #4006–A, P.O. Box 1328, acknowledges that it is under a contact Tonya P. Holland, Office of Parkersburg, WV 26106–1328, or continuing obligation to comply with Planning and Environment, (202) 493– [email protected]. 0283, email: [email protected]. A the terms and conditions of the grant SUPPLEMENTARY INFORMATION: agreement issued for its project with TDD is available at 1–800–877–8339 (TDD/FRS). Any addenda that FTA Title: Claim Against the United States FTA. The applicant understands that for the Proceeds of a Government Check. Federal laws, regulations, policies, and releases on the application process will be posted at https://www.transit.dot.gov. OMB Number: 1530–0010. administrative practices might be Form Number: FS Form 1133 and FS To ensure applicants receive accurate modified from time to time and may Form 1133–A. information about eligibility or the affect the implementation of the project. Abstract: The forms are used to program, the applicant is encouraged to The applicant agrees that the most collect information needed to process an contact FTA directly, rather than recent Federal requirements will apply individual’s claim for non-receipt of through intermediaries or third parties. to the project unless FTA issues a proceeds from a U.S. Treasury check. FTA staff may also conduct briefings on written determination otherwise. The Once the information is analyzed, a the FY 2021 competitive grants applicant must submit the Certifications determination is made and a selection and award process upon and Assurances before receiving a grant recommendation is submitted to the request. Contact information for FTA’s if it does not have current certifications program agency to either settle or deny regional offices can be found on FTA’s on file. the claim. website at https://www.transit.dot.gov/ Current Actions: Extension of a iii. Disadvantaged Business Enterprise about/regional-offices/regional-offices. currently approved collection. FTA requires that its recipients H. Other Program Information Type of Review: Regular. receiving planning, capital, and/or Affected Public: Individuals or This program is not subject to operating assistance that will award Households. Executive Order 12372, prime contracts exceeding $250,000 in Estimated Number of Respondents: ‘‘Intergovernmental Review of Federal FTA funds in a Federal fiscal year 51,640. comply with Department of Programs.’’ Estimated Time per Respondent: 10 Transportation Disadvantaged Business For assistance with GRANTS.GOV minutes. Enterprise (DBE) program regulations please contact GRANTS.GOV by phone Estimated Total Annual Burden (49 CFR part 26). Applicants should at 1–800–518–4726 or by email at Hours: 8,609. expect to include any funds awarded, [email protected]. Request for Comments: Comments excluding those to be used for vehicle Nuria I. Fernandez, submitted in response to this notice will procurements, in setting their overall Administrator. be summarized and/or included in the DBE goal. [FR Doc. 2021–13980 Filed 6–29–21; 8:45 am] request for OMB approval. All comments will become a matter of 3. Reporting BILLING CODE 4910–57–P public record. Comments are invited on: Post-award reporting requirements 1. Whether the collection of information include submission of Federal Financial is necessary for the proper performance Reports and Milestone Progress Reports DEPARTMENT OF THE TREASURY of the functions of the agency, including in FTA’s electronic grants management whether the information shall have system on a quarterly basis. Applicants Bureau of the Fiscal Service practical utility; 2. the accuracy of the should include any goals, targets, and agency’s estimate of the burden of the indicators referenced in their Proposed Collection of Information: collection of information; 3. ways to application to the project in the Claim Against the United States for the enhance the quality, utility, and clarity Executive Summary of the TrAMS Proceeds of a Government Check of the information to be collected; 4. application. Awardees must also submit ways to minimize the burden of the ACTION: Notice and request for copies of the substantial deliverables collection of information on comments. identified in the work plan to the FTA respondents, including through the use

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of automated collection techniques or Abstract: VA Form 28–1903 is used to interest rate reduction refinancing loans other forms of information technology; gather the necessary information to and submit the form to the Veteran no and 5. estimates of capital or start-up develop formal training agreements with later than the third business day after costs and costs of operation, an institution, training establishment, or receiving the Veteran’s application. maintenance, and purchase of services employer for training and rehabilitation Correction to provide information. under 38 U.S.C. Chapter 31. Dated: June 25, 2021. Additionally, the information is used to The abstract is corrected to state the following: Bruce A. Sharp, authorize a claimant’s participation in a program with a training vendor or The major use of this form is to Bureau PRA Clearance Officer. facility under 38 U.S.C. 3104. determine the maximum permissible [FR Doc. 2021–13991 Filed 6–29–21; 8:45 am] An agency may not conduct or loan amount for interest rate reduction BILLING CODE 4810–AS–P sponsor, and a person is not required to refinancing loans. Lenders are required respond to a collection of information to complete VA Form 26–8923, Interest unless it displays a currently valid OMB Rate Reduction Refinancing Loan DEPARTMENT OF VETERANS control number. The Federal Register Worksheet, on all interest rate reduction AFFAIRS Notice with a 60-day comment period refinancing loans and submit the form [OMB Control No. 2900–0677] soliciting comments on this collection in the loan file when selected by VA for of information was published at insert quality review. Agency Information Collection Activity citation date: 86 FR 70, on April 14, Dated: June 24, 2021. Under OMB Review: Contract for 2021, page 19697. Dorothy Glasgow, Training and Employment Affected Public: Private Sector. Estimated Annual Burden: 400 hours. VA PRA Clearance Officer, (Alternate), Office AGENCY: Veterans Benefits Estimated Average Burden per of Enterprise and Integration/Data Administration, Department of Veterans Governance Analytics, Department of Respondent: 60 minutes. Veterans Affairs. Affairs. Frequency of Response: One time. [FR Doc. 2021–13902 Filed 6–29–21; 8:45 am] ACTION: Notice. Estimated Number of Respondents: 1,600. BILLING CODE 8320–01–P SUMMARY: In compliance with the By direction of the Secretary: Paperwork Reduction Act (PRA) of Dorothy Glasgow, DEPARTMENT OF VETERANS 1995, this notice announces that the VA PRA Clearance Officer, (Alternate) Office AFFAIRS Veterans Benefits Administration, of Enterprise and Integration, Data Department of Veterans Affairs, will Governance Analytics, Department of [OMB Control No. 2900–0752] submit the collection of information Veterans Affairs. Agency Information Collection abstracted below to the Office of [FR Doc. 2021–13959 Filed 6–29–21; 8:45 am] Activity: uSPEQ® Consumer Management and Budget (OMB) for BILLING CODE 8320–01–P review and comment. The PRA Experience Survey (Rehabilitation) submission describes the nature of the AGENCY: Veterans Health information collection and its expected DEPARTMENT OF VETERANS Administration, Department of Veterans cost and burden and it includes the AFFAIRS Affairs. actual data collection instrument. ACTION: Notice. DATES: Written comments and Agency Information Collection Activity: Interest Rate Reduction recommendations for the proposed SUMMARY: Veterans Health information collection should be sent Refinancing Loan; Veterans Benefits Administration (VHA), Department of within 30 days of publication of this Administration (VBA) Veterans Affairs (VA), is announcing an notice to www.reginfo.gov/public/do/ AGENCY: Department of Veterans Affairs. opportunity for public comment on the PRAMain. Find this particular ACTION: Notice; correction. proposed collection of certain information collection by selecting information by the agency. Under the ‘‘Currently under 30-day Review—Open SUMMARY: The Department of Veterans Paperwork Reduction Act (PRA) of for Public Comments’’ or by using the Affairs (VA) is correcting a Notice that 1995, Federal agencies are required to search function. Refer to ‘‘OMB Control published in the Federal Register on publish notice in the Federal Register No. 2900–0677’’. March 10, 2021 under the Paperwork concerning each proposed collection of FOR FURTHER INFORMATION CONTACT: Reduction Act (PRA) of 1995. information, including each proposed Maribel Aponte, Office of Enterprise FOR FURTHER INFORMATION CONTACT: extension of a currently approved and Integration, Data Governance Maribel Aponte, Office of Enterprise collection, and allow 60 days for public Analytics (008), 1717 H Street NW, and Integration, Data Governance comment in response to the notice. Washington, DC 20006, (202) 266–4688 Analytics (008), 1717 H Street NW, DATES: Written comments and or email [email protected]. Please Washington, DC 20006, (202) 266–4688 recommendations on the proposed refer to ‘‘OMB Control No. 2900–0677’’ or email [email protected]. Please collection of information should be in any correspondence. refer to ‘‘OMB Control No. 2900–0386’’ received on or before August 30, 2021. SUPPLEMENTARY INFORMATION: in any correspondence. ADDRESSES: Submit written comments Authority: 38 U.S.C. 501(a) and 38 SUPPLEMENTARY INFORMATION: On on the collection of information through U.S.C. 3104. Wednesday, March 10, 2021, at 86 FR Federal Docket Management System Title: Contract for Training and 13789, VA published a Notice which (FDMS) at www.Regulations.gov or to Employment (Chapter 31, Title 38, U.S. VA Form 26–8923 is used to determine Janel Keyes, Office of Regulations, Code). Veterans eligible for an exception to pay Appeals, and Policy (10BRAP), OMB Control Number: 2900–0677. a funding fee in connection with a VA- Department of Veterans Affairs, 810 Type of Review: Extension of a guaranteed loan. Lenders are required to Vermont Avenue NW, Washington, DC currently approved collection. complete VA Form 26–8923 on all 20420 or email to [email protected].

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Please refer to ‘‘OMB Control No. 2900– measures related to patient perceptions ACTION: Notice; correction. 0752’’ in any correspondence. During and perspectives regarding the comment period, comments may be rehabilitation experiences. The uSPEQ® SUMMARY: The Department of Veterans viewed online through FDMS. (pronounced you speak) is a Affairs (VA) is correcting a Notice that FOR FURTHER INFORMATION CONTACT: confidential, anonymous, and published in the Federal Register on Maribel Aponte, Office of Enterprise scientifically tested consumer reporting May 17, 2021 under the Paperwork and Integration, Data Governance system that gives persons served a voice Reduction Act (PRA) of 1995. in their services. A majority of VA Analytics (008), 1717 H Street NW, FOR FURTHER INFORMATION CONTACT: Washington, DC 20006, (202) 266–4688 rehabilitation program offices serving special emphasis populations have Maribel Aponte, Office of Enterprise or email [email protected]. Please and Integration, Data Governance refer to ‘‘OMB Control No. 2900–0752’’ indicated an interest in using the ® Analytics (008), 1717 H Street NW, in any correspondence. uSPEQ document as a survey of rehabilitation consumer experiences in Washington, DC 20006, (202) 266–4688 SUPPLEMENTARY INFORMATION: Under the or email [email protected]. Please PRA of 1995, Federal agencies must their local, regional, and national programs. The uSPEQ survey will be refer to ‘‘OMB Control No. 2900–0386’’ obtain approval from the Office of in any correspondence. Management and Budget (OMB) for each used to gather input from veterans collection of information they conduct regarding their satisfaction with VA’s SUPPLEMENTARY INFORMATION: On or sponsor. This request for comment is rehabilitation programs. VA will use the Monday, May 17, 2021 at 86 FR 26781, being made pursuant to Section data collected to continue quality VA published a Notice which VA Form 3506(c)(2)(A) of the PRA. improvement, informed programmatic 26–8923 is used to determine Veterans With respect to the following development, and to identify eligible for an exception to pay a collection of information, VHA invites rehabilitation program strengths and funding fee in connection with a VA- comments on: (1) Whether the proposed weaknesses. guaranteed loan. Lenders are required to collection of information is necessary Affected Public: Individuals and complete VA Form 26–8923 on all for the proper performance of VHA’s households. interest rate reduction refinancing loans Estimated Annual Burden: 32,000 functions, including whether the and submit the form to the Veteran no hours. information will have practical utility; later than the third business day after Estimated Average Burden per receiving the Veteran’s application. (2) the accuracy of VHA’s estimate of Respondent: 5 minutes. the burden of the proposed collection of Frequency of Response: Once Correction information; (3) ways to enhance the annually. quality, utility, and clarity of the Estimated Number of Respondents: The abstract is corrected to state the information to be collected; and (4) 384,000. following: ways to minimize the burden of the By direction of the Secretary. The major use of this form is to collection of information on determine the maximum permissible respondents, including through the use Dorothy Glasgow, VA PRA Clearance Officer, (Alternate), Office loan amount for interest rate reduction of automated collection techniques or refinancing loans. Lenders are required the use of other forms of information of Enterprise and Integration/Data Governance Analytics, Department of to complete VA Form 26–8923, Interest technology. Veterans Affairs. Rate Reduction Refinancing Loan Authority: Public Law 104–13; 44 Worksheet, on all interest rate reduction U.S.C. 3501–3521. [FR Doc. 2021–14001 Filed 6–29–21; 8:45 am] ® BILLING CODE 8320–01–P refinancing loans and submit the form Title: uSPEQ Consumer Experience in the loan file when selected by VA for Survey (Rehabilitation), VA Form 10– quality review. 0467. DEPARTMENT OF VETERANS OMB Control Number: 2900–0752. Dated: June 24, 2021. Type of Review: Reinstatement of a AFFAIRS Dorothy Glasgow, previously approved collection. Agency Information Collection VA PRA Clearance Officer, (Alternate), Office Abstract: The Department of Veterans Activity: Interest Rate Reduction of Enterprise and Integration/Data Affairs (VA) rehabilitation programs are Governance Analytics, Department of ® Refinancing Loan; Veterans Benefits Veterans Affairs. committed to adopting the uSPEQ Administration (VBA) Consumer Experience 2.0 Universal [FR Doc. 2021–13903 Filed 6–29–21; 8:45 am] Questionnaire to assess outcome AGENCY: Department of Veterans Affairs. BILLING CODE 8320–01–P

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Vol. 86 Wednesday, No. 123 June 30, 2021

Part II

Department of Consumer Financial Protection

12 CFR Part 1024 Protection for Borrowers Affected by the COVID–19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X; Final Rule

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BUREAU OF CONSUMER FINANCIAL COVID–19 pandemic has had a million borrowers into forbearance PROTECTION devastating economic impact in the programs.7 During this same period, United States, making it difficult for servicers have adapted to rapidly 12 CFR Part 1024 some borrowers to stay current on their changing guidance and transitioned mortgage payments. To help struggling their own workforces to remote work. [Docket No. CFPB–2021–0006] borrowers, various Federal and State The Bureau recognizes the effort that RIN 3170–AB07 protections have been established took, and the challenge that still lies throughout the last 16 months, before the industry. While forbearance Protections for Borrowers Affected by including the forbearances made numbers have continued to drop,8 those the COVID–19 Emergency Under the available by the Coronavirus Aid, Relief, borrowers still in forbearance are Real Estate Settlement Procedures Act and Economic Security Act (CARES increasingly many months, even more (RESPA), Regulation X Act) 2 and various Federal and State than a year, behind on their mortgage foreclosure moratoria.3 These payments. At the same time, increasing AGENCY: Bureau of Consumer Financial protections will begin to phase out over numbers of borrowers are exiting Protection. the summer. A large number of forbearance while delinquent without ACTION: Final rule; official borrowers remain seriously delinquent loss mitigation in place.9 The ways interpretation. and will be at risk of foreclosure servicers may have handled loss initiation this fall. This final rule will mitigation in the past, including the SUMMARY: The Bureau of Consumer help ensure a smooth and orderly allocation of resources and Financial Protection (Bureau) is issuing transition as the other Federal and State communication methods used, may not this final rule to amend Regulation X to protections end by providing borrowers be as effective in these unprecedented assist mortgage borrowers affected by with a meaningful opportunity to circumstances. the COVID–19 emergency. The final rule explore ways to resume making The Bureau is concerned that a establishes temporary procedural payments and avoid foreclosure. This potentially historically high number of safeguards to help ensure that borrowers final rule will also help promote borrowers will seek assistance from have a meaningful opportunity to be housing security by preventing their servicers at approximately the reviewed for loss mitigation before the avoidable foreclosures and keeping same time this fall, which could lead to servicer can make the first notice or borrowers on the path to wealth creation delays and errors as servicers work to filing required for foreclosure on certain through homeownership. The Bureau process a high volume of loss mitigation mortgages. In addition, the final rule recognizes that some foreclosures are inquiries and applications. In addition, would temporarily permit mortgage unavoidable and that not every the Bureau is concerned that the servicers to offer certain loan borrower will be able to stay in their circumstances facing borrowers due to modifications made available to home indefinitely. the COVID–19 emergency, which may borrowers experiencing a COVID–19- Borrowers who are in forbearance, or involve potential economic hardship, related hardship based on the behind on their mortgages and not in health conditions, and extended periods evaluation of an incomplete application. forbearance, are disproportionately of forbearance or delinquency, may The Bureau is also finalizing certain Black and Hispanic, just as those interfere with some borrowers’ ability to temporary amendments to the early workers whose re-employment obtain and understand important intervention and reasonable diligence continues to lag are disproportionately information that the existing rule aims obligations that Regulation X imposes Black and Hispanic.4 Black and to provide borrowers regarding the on mortgage servicers. Hispanic borrowers also are foreclosure avoidance options available DATES: This final rule is effective on disproportionately likely to have less to them. equity in their homes. Thus, Black and August 31, 2021. Final Rule FOR FURTHER INFORMATION CONTACT: Hispanic borrowers, and the Elizabeth Spring, Program Manager, communities in which they live, are To address these concerns, this final Office of Mortgage Markets; Willie especially likely to benefit from this rule includes five key amendments to Williams, Paralegal; Angela Fox or Ruth rule.5 As homeownership plays the Regulation X, all of which encourage borrowers and servicers to work Van Veldhuizen, Counsels; or Brandy primary role in wealth creation in the 6 together to facilitate review for Hood or Terry J. Randall, Senior United States, a wave of foreclosures foreclosure avoidance options. First, to Counsels, Office of Regulations, at 202– due to the current crisis may have a help ensure that borrowers have a 435–7700 or https:// lasting impact on these borrowers’ meaningful opportunity to be reviewed reginquiries.consumerfinance.gov/. If ability to maintain and accumulate for loss mitigation, this final rule you require this document in an wealth. establishes temporary special COVID–19 alternative electronic format, please Since last spring when the CARES Act procedural safeguards that must be met contact [email protected]. was passed, servicers placed over 7 for certain mortgages before the servicer SUPPLEMENTARY INFORMATION: 2 The Coronavirus Aid, Relief, and Economic can make the first notice or filing I. Summary of the Final Rule Security Act, Public Law 116–136, 134 Stat. 281 required by applicable law for any (2020) (CARES Act). judicial or non-judicial foreclosure 3 Id. To provide relief for mortgage process because of a delinquency. This borrowers facing financial hardship due 5 Bureau of Consumer Fin. Prot., Characteristics of Mortgage Borrowers During the COVID–19 requirement generally is applicable only to the COVID–19 pandemic, the Bureau Pandemic at 5 (May 2021), https:// if (1) the borrower’s mortgage loan is finalizing amendments to Regulation files.consumerfinance.gov/f/documents/cfpb_ obligation became more than 120 days X’s mortgage servicing rules.1 As characteristics-mortgage-borrowers-during-covid- 19-pandemic_report_2021-05.pdf (CFPB Mortgage described in more detail in part II, the Borrower Pandemic Report). 7 Black Knight Mortg. Monitor, April 2021 Report 6 Nat’l Ass’n of Home Builders, Homeownership at 10 (Apr. 2021), https://cdn.blackknightinc.com/ _ _ _ 1 This final rule finalizes the proposed Remains Primary Driver of Household Wealth, wp-content/uploads/2021/06/BKI MM Apr2021 amendments to Regulation X that the Bureau issued NAHB Now Blog (Feb. 18, 2021), https:// Report.pdf (Black Apr. 2021 Report). on April 5, 2021, with revisions as discussed nahbnow.com/2021/02/homeownership-remains- 8 Id. at 7. herein. 86 FR 18840 (Apr. 9, 2021). primary-driver-of-household-wealth/. 9 Id. at 10.

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delinquent on or after March 1, 2020, modification. Finally, the servicer may forbearance programs made available at and (2) the statute of limitations not charge any fee in connection with that time and the actions the borrower applicable to the foreclosure action the loan modification and must waive must take to be evaluated. The servicer being taken in the laws of the State or all existing late charges, penalties, stop must also identify at least one way that municipality where the property payment fees, or similar charges that the borrower can find contact securing the mortgage loan is located were incurred on or after March 1, 2020, information for homeownership expires on or after January 1, 2022. This promptly upon the borrower’s counseling services, such as referencing provision expires on January 1, 2022, acceptance of the loan modification. If the borrower’s periodic statement. If the meaning that the procedural safeguards the borrower accepts an offer made borrower is in a forbearance program are not applicable if a servicer makes pursuant to this new exception, the final made available to borrowers the first notice or filing required by rule excludes servicers from certain experiencing a COVID–19-related applicable law for any judicial or non- requirements with regard to any loss hardship, then during the live contact judicial foreclosure process on or after mitigation application submitted prior made pursuant to § 1024.39(a) that January 1, 2022. A procedural safeguard to the loan modification offer, including occurs at least 10 days and no more than has been met, and the servicer may exercising reasonable diligence to 45 days before the scheduled end of the proceed with foreclosure, if: (1) The complete the loss mitigation application forbearance program, the servicer must borrower submitted a completed loss and sending the acknowledgement provide certain information to the mitigation application and notice required by § 1024.41(b)(2). borrower. The servicer must inform the § 1024.41(f)(2) permits the servicer to However, if the borrower fails to borrower of the date the borrower’s make the first notice or filing; (2) the perform under a trial loan modification current forbearance program is property securing the mortgage loan is plan offered pursuant to the proposed scheduled to end. In addition, the abandoned under State or municipal new exception or requests further servicer must provide a list and brief law; or (3) the servicer has conducted assistance, the final rule requires description of each of the types of specified outreach and the borrower is servicers to immediately resume forbearance extension, repayment unresponsive. reasonable diligence with regard to any options, and other loss mitigation Second, the final rule permits loss mitigation application the borrower options made available by the owner or servicers to offer certain streamlined submitted prior to the servicer’s offer of assignee of the borrower’s mortgage loan loan modification options made the trial loan modification plan and to at that time, and the actions the available to borrowers with COVID–19- provide the borrower with the borrower must take to be evaluated for related hardships based on the acknowledgement notice required by such loss mitigation options. Finally, evaluation of an incomplete loss § 1024.41(b)(2) with regard to the most the servicer must identify at least one mitigation application. Eligible loan recent loss mitigation application the way that the borrower can find contact modifications must satisfy certain borrower submitted prior to the offer information for homeownership criteria that aim to establish sufficient that the servicer made under the new counseling services, such as referencing safeguards to help ensure that a exception, unless the servicer has the borrower’s periodic statement. This borrower is not harmed if the borrower already provided that notice to the provision is temporary and will end on chooses to accept an offer of an eligible borrower. October 1, 2022. loan modification based on the Third, the final rule amends the early Fourth, the final rule clarifies evaluation of an incomplete application. intervention obligations to help ensure servicers’ reasonable diligence First, to be eligible, the loan that servicers communicate timely and obligations when the borrower is in a modification may not cause the accurate information to borrowers about short-term payment forbearance borrower’s monthly required principal their loss mitigation options during the program made available to a borrower and interest payment to increase and current crisis. In general, the final rule experiencing a COVID–19-related may not extend the term of the loan by requires servicers to discuss specific hardship based on the evaluation of an more than 480 months from the date the additional COVID–19-related incomplete application. Specifically, the loan modification is effective. Second, if information during live contact with final rule specifies that a servicer must the loan modification permits the borrowers established under existing borrower to delay paying certain § 1024.39(a) in two circumstances: (1) If contact the borrower no later than 30 amounts until the mortgage loan is the borrower is not in a forbearance days before the end of the forbearance refinanced, the mortgaged property is program and (2) if the borrower is near period if the borrower remains sold, the loan modification matures, or, the end of a forbearance program made delinquent to determine if the borrower for a mortgage loan insured by the available to borrowers experiencing a wishes to complete the loss mitigation Federal Housing Administration (FHA), COVID–19-related hardship. application and proceed with a full loss the mortgage insurance terminates, Specifically, if the borrower is not in a mitigation evaluation. If the borrower those amounts must not accrue interest. forbearance program at the time the requests further assistance, the servicer Third, the loan modification must be servicer establishes live contact with the must exercise reasonable diligence to made available to borrowers borrower pursuant to § 1024.39(a) and complete the application before the end experiencing a COVID–19-related the owner or assignee of the borrower’s of the forbearance program period. hardship. Fourth, the borrower’s mortgage loan makes a forbearance Finally, the final rule defines COVID– acceptance of an offer of the loan program available to borrowers 19-related hardship to mean a financial modification must end any preexisting experiencing a COVID–19-related hardship due, directly or indirectly, to delinquency on the mortgage loan or the hardship, the servicer must inform the the national emergency for the COVID– loan modification must be designed to borrower that forbearance programs are 19 pandemic declared in Proclamation end any preexisting delinquency on the available for borrowers experiencing 9994 on March 13, 2020 (beginning on mortgage loan upon the borrower such a hardship. Unless the borrower March 1, 2020) and continued on satisfying the servicer’s requirements for states they are not interested, the February 24, 2021, in accordance with completing a trial loan modification servicer must also list and briefly section 202(d) of the National plan and accepting a permanent loan describe to the borrower those Emergencies Act (50 U.S.C.1622(d)).

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II. Background their portfolios.14 Many servicers lacked date.22 Moreover, the assessment found the infrastructure, trained staff, controls, that delinquent borrowers were A. The Bureau’s Regulation X Mortgage and procedures needed to manage somewhat more likely than they were Servicing Rules effectively the flood of delinquent pre-rule to start applying for loss In January 2013, the Bureau issued a mortgages they were obligated to mitigation earlier in delinquency.23 final mortgage servicing rule to handle.15 Inadequate staffing and Also, the assessment found that loans implement the Real Estate Settlement procedures led to a range of reported that became delinquent were more Procedures Act of 1974 (RESPA) (2013 problems with servicing of delinquent likely to recover from delinquency (that RESPA Servicing Final Rule),10 and loans, including some servicers is, to return to current status, including included these rules in Regulation X.11 misleading borrowers, failing to through a modification of the loan The Bureau later clarified and revised communicate with borrowers, losing or terms) after the rule’s effective date.24 Regulation X’s servicing rules through mishandling borrower-provided The assessment also determined that the several additional notice-and-comment documents supporting loan rule’s general prohibition on initiating 12 rulemakings. In part, these modification requests, and generally foreclosure within the first 120 days of rulemakings were intended to address providing inadequate service to delinquency prevented rather than deficiencies in servicers’ handling of delinquent borrowers.16 delayed foreclosures.25 Finally, the delinquent borrowers and loss The Bureau’s mortgage servicing rules assessment also found that servicing mitigation applications during and after address these concerns by establishing costs increased substantially between 13 the 2008 financial crisis. When the procedures that mortgage servicers 2008 and 2013.26 housing crisis began, servicers were generally must follow in evaluating loss The COVID–19 pandemic was faced with historically high numbers of mitigation applications submitted by declared a national emergency on March delinquent mortgages, loan modification mortgage borrowers 17 and requiring 13, 2020, and the emergency declaration requests, and in-process foreclosures in certain communication efforts with was continued in effect on February 24, 27 delinquent borrowers.18 The mortgage 2021. As described in more detail 10 Real Estate Settlement Procedures Act of 1974, servicing rules also provide certain below, the pandemic has had a Public Law 93–533, 88 Stat. 1724 (codified as devastating economic impact in the amended at 12 U.S.C. 2601 et seq.). protections against foreclosure based on 11 78 FR 10695 (Feb. 14, 2013) (2013 RESPA the length of the borrower’s delinquency United States. In June of 2020, the Servicing Final Rule). In February 2013, the Bureau and the receipt of a complete loss Bureau issued an interim final rule also published separate ‘‘Mortgage Servicing Rules mitigation application.19 For example, (June 2020 IFR) amending Regulation Under the Truth in Lending Act (Regulation Z)’’ X.28 The June 2020 IFR aimed to make (2013 TILA Servicing Final Rule). See 78 FR 10902 Regulation X generally prohibits a (Feb. 14, 2013). The Bureau conducted an servicer from making the first notice or it easier for borrowers to transition out assessment of the RESPA mortgage servicing rule in filing required for foreclosure until the of financial hardship caused by the 2018–19 and released a report detailing its findings borrower’s mortgage loan is more than COVID–19 pandemic and for mortgage in early 2019. Bureau of Consumer Fin. Prot., 2013 servicers to assist those borrowers. With RESPA Servicing Rule Assessment Report, (Jan. 120 days delinquent.20 These 2019), https://files.consumerfinance.gov/f/ requirements are discussed more fully certain exceptions, Regulation X documents/cfpb_mortgage-servicing-rule- prohibits servicers from offering a loss assessment_report.pdf (Servicing Rule Assessment in the section-by-section analysis in part IV. mitigation option to a borrower based Report). on evaluation of an incomplete 12 The Bureau published an assessment Amendments to the 2013 Mortgage Rules under application.29 The June 2020 IFR the Real Estate Settlement Procedures Act of the 2013 RESPA Servicing Final Rule amended Regulation X to allow (Regulation X) and the Truth in Lending Act in 2019.21 The assessment analyzed the (Regulation Z), 78 FR 44686 (July 24, 2013); servicers to offer certain loss mitigation effects of the rule on borrowers and Amendments to the 2013 Mortgage Rules under the options to borrowers experiencing Equal Credit Opportunity Act (Regulation B), Real servicers. Among other things, the financial hardships due, directly or Estate Settlement Procedures Act (Regulation X), assessment concluded that loans that indirectly, to the COVID–19 emergency and the Truth in Lending Act (Regulation Z), 78 FR became delinquent were less likely to 60382 (Oct. 1, 2013); Amendments to the 2013 based on an evaluation of an incomplete proceed to a foreclosure sale during the Mortgage Rules under the Real Estate Settlement loss mitigation application. Eligible loss Procedures Act (Regulation X) and the Truth in months after the rule’s effective date mitigation options, among other things, Lending Act (Regulation Z), 78 FR 62993 (Oct. 23, compared to months before the effective 2013); Amendments to the 2013 Mortgage Rules must permit borrowers to delay paying Under the Real Estate Settlement Procedures Act certain amounts until the mortgage loan (Regulation X) and the Truth in Lending Act 14 See 2013 RESPA Servicing Rule Assessment is refinanced, the mortgaged property is (Regulation Z), 81 FR 72160 (Oct. 19, 2016) (2016 Report, supra note 11, at 37–60. Mortgage Servicing Final Rule); Amendments to the 15 2013 RESPA Servicing Final Rule, supra note sold, the term of the mortgage loan ends, 2013 Mortgage Rules Under RESPA (Regulation X) 11, at 10700. or, for a mortgage insured by the FHA, and TILA (Regulation Z), 82 FR 30947 (July 5, 16 See U.S. Gov’t Accountability Off., Troubled the mortgage insurance terminates. 2017); Mortgage Servicing Rules Under RESPA Asset Relief Program: Further Actions Needed to (Regulation X), 82 FR 47953 (Oct. 16, 2017). The Fully and Equitably Implement Foreclosure B. Forbearance Programs Offered Under Bureau also issued notices providing guidance on Mitigation Actions, GAO–10–634, at 14–16 (2010), CARES Act the Rule and soliciting comment on the Rule. See, https://www.gao.gov/assets/310/305891.pdf; e.g., Applicability of Regulation Z’s Ability-to- Problems in Mortgage Servicing from Modification The CARES Act was signed into law Repay Rule to Certain Situations Involving to Foreclosure: Hearing Before the S. Comm. on on March 27, 2020. Under the CARES Successors-in-Interest, 79 FR 41631 (July 17, 2014); Banking, Hous., and Urban Affairs, 111th Cong. 54 Act, a borrower with a federally backed Safe Harbors from Liability Under the Fair Debt (2010) (statement of Thomas J. Miller, Att’y Gen. loan may request a 180-day forbearance Collections Practices Act for Certain Actions in State of Iowa), https://www.banking.senate.gov/ Compliance with Mortgage Servicing Rules Under imo/media/doc/MillerTestimony111610.pdf. that may be extended for another 180 the Real Estate Settlement Procedures Act 17 See generally 12 CFR 1024.41. Small servicers, (Regulation X) and the Truth in Lending Act as defined in Regulation Z, 12 CFR 1026.41(e)(4), 22 Id. at 9. (Regulation Z), 81 FR 71977 (Oct. 19, 2016); Policy are generally exempt from these requirements. 12 23 Id. at 11. Guidance on Supervisory and Enforcement CFR 1024.30(b)(1). 24 Id. at 8. Priorities Regarding Early Compliance With the 18 25 2016 Amendments to the 2013 Mortgage Servicing 12 CFR 1024.39. Id. at 12. Rules Under RESPA (Regulation X) and TILA 19 12 CFR 1024.41(f) through (g). 26 Id. at 8. (Regulation Z), 82 FR 29713 (June 30, 2017). 20 12 CFR 1024.41(f)(1)(i). 27 86 FR 11599 (Feb. 26, 2021). 13 See generally 2013 RESPA Servicing Final 21 2013 RESPA Servicing Rule Assessment 28 85 FR 39055 (June 30, 2020). Rule, supra note 11, at 10699–701. Report, supra note 11. 29 See 12 CFR 1024.41(c)(2).

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days at the request of the borrower if the The risks of extended forbearance and could still exit forbearance by the end borrower attests to having a COVID- severe delinquency are more of 2021.36 As a result, this fall, servicers related financial hardship. Servicers pronounced in some communities. For may need to assist a significant number must grant these forbearance programs example, Bureau research found that, of borrowers with post-forbearance loss to borrowers with federally backed during the pandemic, mortgage mitigation review. As of May 18, 2021, mortgages, which are mortgage loans forbearance and delinquency rates have Black Knight reports 5 percent of purchased or securitized by Fannie Mae been significantly more common in borrowers remain past due on their or Freddie Mac (the GSEs) and loans communities of color and lower-income mortgage but are in active loss made, insured, or guaranteed by FHA, areas.32 Since homeownership rates mitigation.37 This number may also VA, or USDA. Through its mortgage vary significantly by race and ethnicity, fluctuate as borrowers who remain in market monitoring throughout the if borrowers of these communities are forbearance may not be able to cure pandemic, the Bureau understands that not able to recover and are displaced their delinquency when they exit servicers of mortgage loans that are not from their homes, as a result of forbearance and many borrowers may federally backed offer similar foreclosure, it will make need a more permanent reduction in forbearance programs to borrowers homeownership more unattainable in their mortgage payment amount through affected by the COVID–19 emergency. the future, thus widening the divide for a loan modification. In February of 2021, FHA, the Federal this population of borrowers. For As of May 25, 2021, forbearance Housing Finance Agency (FHFA), example, in 2019, the homeownership program starts hit their highest level in Department of Agriculture (USDA), and rate among white non-Hispanic several weeks.38 The increase in Department of Veterans Affairs (VA) Americans was approximately 73 forbearance program starts can be announced they were expanding their percent, compared to 42 percent among attributed to elevated volume of forbearance programs beyond the Black Americans. The homeownership borrowers who were previously in minimum required by the CARES Act. rate was 47 percent among Hispanic or forbearance during the COVID–19 The agencies extended the length of Latino Americans, 50 percent among emergency reentering or restarting COVID–19 forbearance programs for up American Indians or Alaska Natives, forbearance.39 A similar scenario was to an additional six months for a and 57 percent among Asian or Pacific observed after a spike in exits in early maximum of up to 18 months of Islander Americans.33 Given the racial October 2020 as restart activity forbearance for borrowers who inequities in homeownership and increased then as well. This was when requested additional forbearance by a disproportionately higher mortgage the first wave of forbearance entrants date certain.30 In addition to the forbearance and delinquency in reached their six-month review for expansion of the programs, on June 24, communities of color and lower income extension and removal.40 There was also 2021, FHA, USDA, and VA extended the areas, the Bureau anticipates that these a slight increase in new forbearance period for borrowers to be approved for communities are especially likely to plan starts. This may be an indication a forbearance program from their benefit from the protections of this rule. that many borrowers continue to mortgage servicer through the end of C. Borrowers With Loans in Forbearance experience mortgage payment September.31 FHFA has not announced uncertainty. a deadline to request initial forbearance There is a lot of uncertainty about the for loans purchased or securitized by number of borrowers who will exit D. Post-Forbearance Options for the GSEs. To date, data on borrowers forbearance this fall. The volume of Borrowers Affected by the COVID–19 reentering or requesting forbearance borrowers exiting forbearance programs Emergency suggests borrower are still using these is expected to fluctuate throughout the Since the beginning of the COVID–19 programs. summer as borrowers’ forbearance emergency, investors and servicers have While forbearance has been a resource periods end and borrowers either exit implemented several post-forbearance for many borrowers, not all borrowers forbearance or extend their forbearance repayment options and other loss will be able to recover from such severe for another three-month period. June mitigation options to assist borrowers delinquency. As discussed more fully in 2021 presents a substantial period of experiencing a COVID–19-related part VII, historical data suggests that potential exits of early forbearance many borrowers with who are entrants, who reached 15 months of 36 Id. delinquent a year or longer have trouble forbearance in June. Black Knight 37 Black Apr. 2021 Report, supra note 7, at 10. resuming payments successfully and are estimates there could be slightly fewer 38 Andy Walden, Forbearance Volumes Increase more likely to experience foreclosure than 400,000 exits in June if current Again Moderate Opportunity for Additional trends continue.34 This will be the last Improvement in June, Black Knight Mortg. Monitor than borrowers with shorter Blog (May 28, 2021), https:// delinquencies. Additionally, long-term review for exit or extension before the www.blackknightinc.com/blog-posts/forbearance- forbearance can erode equity, which review in September for borrowers who volumes-increase-again-moderate-opportunity-for- _ may make selling the home as an entered forbearance in March of 2020 additional-improvement-in-early-june/?utm and who will reach the maximum 18 term=Forbearance%20Volumes alternative to foreclosure less viable. %20Increase%20Again%2C%20Moderate% months of forbearance that month. 20Opportunity%20for%20Additional% 30 FHA, VA, and USDA permit borrowers who While a significant number of early 20Improvement%20in%20Early%20June&utm_ were in a COVID–19 forbearance program prior to entrants exited forbearance in the last 60 campaign=An%20Update%20from% June 30, 2020 to be granted up to two additional days,35 an estimated 900,000 borrowers 20Vision%20%5Cu2013%20Black three-month payment forbearance programs. FHFA %20Knight%27s%20Blog&utm_ stated that the additional three-month extension content=email&utm_source=Act-On_ allows borrowers to be in forbearance for up to 18 32 CFPB Mortgage Borrower Pandemic Report, Software&utm_medium=RSS%20Email (Black May months. Eligibility for the extension is limited to supra note 5. 2021 Blog). borrowers who are in a COVID–19 forbearance 33 USAFacts, Homeownership rates show that 39 A borrower that ‘‘restarts’’ a forbearance program as of February 28, 2021, and other limits Black Americans are currently the least likely group program is a borrower whose loan was previously may apply. Id. to own homes (Oct. 16, 2020), https://usafacts.org/ in forbearance, who formally exited the forbearance 31 The Bureau recognizes that the government articles/homeownership-rates-by-race/. program, arranged to pay-off any delinquent agencies may adjust their programs further in the 34 Id. at 8. amounts, but ultimately reentered into a coming months, and the Bureau will continue to 35 An estimated 413,000 borrowers exited forbearance program. coordinate with the agencies. forbearance in May. Id. at 9. 40 Black Apr. 2021 Report, supra note 7, at 8.

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hardship. For example, servicers have Also noted earlier, there is a high F. Delinquent Loans Not in a offered borrowers repayment plans, volume of borrowers who remain in Forbearance Program or Loss Mitigation payment deferral programs or partial prolonged forbearance that are FHA and Even though millions of borrowers claims programs, and loan modification VA borrowers. The programs offered by have received assistance through programs. There are additional options these borrowers may be more for borrowers who find themselves forbearance programs, there are still complicated to navigate or streamlined thousands of borrowers who are unable to stabilize their finances or do products may not be available resulting not wish to remain in their home; delinquent or in danger of becoming in the need for higher-touch delinquent and are not in a forbearance servicers also offer short sales or deed- communication with their servicer. in-lieu of foreclosure as an alternative to program or in some type of loss foreclosure. If borrowers who are currently in an mitigation. eligible forbearance program request an As of end of April 2021, there were an E. Loans Exiting Forbearance extension to the maximum time offered estimated 158,000 seriously delinquent As of April 2021, there were 1.9 by the government agencies, those loans borrowers who were delinquent before million borrowers 90 days or more that were placed in a forbearance the pandemic started and are not in a delinquent on their mortgage program early on in the pandemic forbearance program. There are another payments.41 Of those borrowers, 90 (March and April 2020) will reach the 33,000 borrowers who became seriously percent are either in forbearance or are end of their maximum 18-month delinquent after the pandemic began involved in other loss mitigation forbearance period in September and and had not entered a forbearance discussions with their servicers.42 This October of 2021. Black Knight data program and were not in active loss includes loans that reentered or suggested as of mid-March, there would mitigation.52 restarted forbearance previously. For be an estimated 475,000 programs on In addition, as of May 18, 2021, there loans that became seriously delinquent track to remain active and reach their were 168,000 forbearance program exits after the COVID–19 emergency, 97 18-month expirations at the end of by borrowers who are not yet in loss percent of these loans are either in September, with another 275,000 at the mitigation and remain delinquent.53 forbearance programs or other loss end of October.49 However, due to 43 However, more than an estimated mitigation options. recent forbearance exits, those estimates 110,000 of those loans were already While the industry seems to have have now fallen to approximately delinquent before the COVID–19 recovered from the peak periods of 385,000 and 225,000.50 emergency.54 forbearance, many factors in the market These numbers are expected to fluctuate depending on suggest that overall risk is still elevated. G. Loans at Heightened Risk of Since January 2020,44 there have been exit volume of early forbearance Avoidable Foreclosure approximately 7.2 million loans that entrants, especially near the end of June have entered a forbearance program.45 2021 during the 15-month review. Since the CARES Act took effect in Of the subset of loans that that exited However, even with the recent exits, March of 2020, various Federal and forbearance and have either cured or there could be nearly 900,000 borrowers State foreclosure moratoria have been received a workout solution, such as exiting forbearance by the end of the established. As of June 24, 2021, FHFA, loss mitigation, approximately 3.3 year.51 This could pose challenges for FHA, VA, and USDA had emergency million borrowers are reperforming as of servicers. foreclosure moratoria in effect until July 55 May 2021.46 Another 1.2 million have This potentially historically high 31, 2021. Most foreclosure paid-off their mortgage in full most volume of borrowers exiting forbearance proceedings have been halted as a result of the moratoria, and therefore likely through refinancing or selling within a short period of time could 47 foreclosures are at historic lows.56 In their home. In addition, as of May 18, strain servicer capacity, possibly April 2021, there were 3,700 2021, there were an estimated 365,000 resulting in delays or errors in foreclosures initiated and the borrowers who have exited forbearance processing loss mitigation requests. It and were in an active loss mitigation remains unclear how many borrowers in 48 52 option. As the population of a forbearance program will exit Id. at 11. 53 Id. at 10. borrowers exiting after 18 months of forbearance at 15 months in June rather forbearance (and possibly as many 54 Id. than exercising any additional 55 missed payments) grows, the Bureau See Press Release, The White House, FACT remaining 3-month extensions. SHEET: Biden-Harris Administration Announces expects the number of borrowers who Initiatives to Promote Housing Stability By will not be able to bring their mortgage The Bureau is not aware of another Supporting Vulnerable Tenants and Preventing current will also grow. Many of these time when this many mortgage Foreclosures (June 24, 2021), https:// borrowers will need to be evaluated for borrowers were in forbearances of such www.whitehouse.gov/briefing-room/statements- releases/2021/06/24/fact-sheet-biden-harris- permanent loss mitigation, such as loan long duration at once, or another time administration-announces-initiatives-to-promote- modifications, which can decrease their when as many mortgage borrowers were housing-stability-by-supporting-vulnerable-tenants- monthly payment, to avoid foreclosure. forecast to exit forbearance within a and-preventing-foreclosures/ (the Department of relatively short period of time. This lack Housing and Urban Development (HUD), Department of VeteransAffairs (VA), and 41 Black Apr. 2021 Report, supra note 7, at 5. of historical precedent creates Department of Agriculture (USDA)—will extend 42 Id. uncertainty. The Bureau anticipates that their respective foreclosure moratorium for one, 43 Id. many borrowers who continue to be final month, until July 31, 2021). Furthermore, the 44 Black Knight’s Mortgage Monitoring adversely affected by the COVID–19 Bureau recognizes that these government agencies forbearance data started January 2020. See Black may adjust their programs further in the coming Knights Mortg. Monitor, January 2021 Report (Jan. emergency will utilize the maximum months, and the Bureau will continue to coordinate 2021), https://cdn.blackknightinc.com/wp-content/ allowable months of forbearance and with these agencies. _ _ _ uploads/2021/03/BKI MM Jan2021 Report.pdf most will exit in the fall. 56 ATTOM Data Solutions, Q3 2020 U.S. (Black Jan. 2021 Report). Foreclosure Activity Reaches Historical Lows as the 45 Supra note 7, at 10. Foreclosure Moratorium Stalls Filings (Oct. 15, 46 Id. 49 Id. at 9. 2020), https://www.attomdata.com/news/market- 47 Id. 50 Id. trends/foreclosures/attom-data-solutions-september 48 Id. 51 Id. -and-q3-2020-u-s-foreclosure-market-report/.

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foreclosure inventory was down 26 borrower’s delinquency may begin or achieve positive outcomes for borrowers percent from the same time last year.57 continue during a forbearance period if during the current crisis. In addition, before the pandemic, a periodic payment sufficient to cover Among other things, the Bureau has foreclosure activity was at half the principal, interest, and, if applicable, utilized its supervisory authority to normal rate.58 Typically, about 1 escrow is due and unpaid during the obtain current information about percent of loans are in some stage of forbearance. Because the forbearance servicer activities. For example, in May foreclosure annually.59 In early 2020, programs offered as a result of the of 2020, the Bureau began conducting the foreclosure rate was below average COVID-emergency generally do not high-level Prioritized Assessments (PA) at about 0.5 percent.60 In January 2020, pause delinquency and borrowers may in response to the pandemic.68 The PAs there were about 245,000 loans in the be delinquent for longer than 120 days, were designed to obtain real-time foreclosure process when the pandemic it is possible that a servicer may refer information from an expanded group of started. the loan to foreclosure soon after a supervised entities that operate in Since the Federal and State moratoria borrower’s forbearance program ends markets posing elevated risk of have been in place, most of these unless a foreclosure moratorium or consumer harm due to pandemic-related borrowers have been protected but are at other restriction is in place. issues. The Bureau, through its heightened risk of referral to foreclosure As of April 2021, there were still an supervision program, analyzed or foreclosure soon after the moratoria estimated 1.9 million borrowers in pandemic-related market developments end if they do not resolve their forbearance programs who were more to determine where issues were most delinquency or reach a loss mitigation than 90 days behind on their mortgage likely to pose risk to consumers. agreement with their servicer. The payments.63 While the national Supervision currently is conducting Bureau’s mortgage servicing rules delinquency rate fell to 4.66 percent in follow-up on the issues covered in the generally prohibit servicers from making April, it remains about 1.5 percent 2020 Prioritized Assessments as well as the first notice or filing required for above its pre-pandemic level.64 the current issues related to economic foreclosure until the borrower’s The Bureau remains focused on hardships consumers are facing in the mortgage loan obligation is more than borrowers who might be at heightened ongoing pandemic. This work may be 120 days delinquent.61 Even where risk of avoidable foreclosure. The conducted as part of ongoing forbearance programs pause or defer Bureau issued on May 4, 2021, a monitoring, in a supervisory inquiry payment obligations, they do not research brief titled, Characteristics of apart from a scheduled examination, in necessarily pause delinquency.62 A Mortgage Borrowers During the COVID– a scheduled examination, or in some 19 Pandemic, which showed that some cases, through enforcement. For 57 Black Apr. 2021 Report, supra note 7, at 3. borrowers and communities are more at example, Supervision is reviewing 58 Statista, Foreclosure rate in the United States risk than others. The data from the brief instances where servicers did not from 2005–2020, (Apr. 15, 2021), https:// showed that borrowers in forbearance or implement the CARES Act properly, www.statista.com/statistics/798766/foreclosure- delinquent are disproportionately Black such as charging fees that are not rate-usa/. 65 59 and Hispanic. For example, 33 percent charged if the borrower made all Id. contractual payments on time, failing to 60 Id. of borrowers in forbearance (and 27 61 12 CFR 1024.41(f). See also 12 CFR percent of delinquent borrowers) are process CARES Act forbearances where 1024.30(c)(2) (limiting the scope of this provision Black or Hispanic, while only 18 borrowers made proper requests for the to a mortgage loan secured by a property that is the percent of the total population of forbearances, or failing to comply with borrower’s principal residence). mortgage borrowers are Black or the Fair Credit Reporting Act’s 62 For purposes of Regulation X, a preexisting 66 requirements to report the credit delinquency period could continue or a new Hispanic. delinquency period could begin even during a Forbearance and delinquency are obligation or account appropriately. forbearance program that pauses or defers loan significantly more common in Supervision is conducting oversight to payments if a periodic payment sufficient to cover communities of color (defined as ensure these servicers take timely action principal, interest, and, if applicable, escrow is due majority minority census tracts) and to reverse fees, provide full remediation and unpaid according to the loan contract during the forbearance program. 12 CFR 1024.31 (defining lower-income communities (defined by to affected borrowers, and implement delinquency as the ‘‘period of time during which census tract income quartiles).67 If processes to promote compliance a borrower and a borrower’s mortgage loan borrowers are displaced from their moving forward. obligation are delinquent’’ and stating that ‘‘a homes as a result of avoidable In March 2021, the volume of overall borrower and a borrower’s mortgage obligation are mortgage complaints to the Bureau delinquent beginning on the date a periodic foreclosure, it will make payment sufficient to cover principal, interest, and, homeownership more unattainable in increased to more than 3,400 if applicable, escrow becomes due and unpaid, the future, thus potentially widening the complaints, the greatest monthly until such time as no periodic payment is due and wealth divide for this population of mortgage complaint volume since April unpaid.’’). However, it is important to note that 2018.69 Mortgage complaints Regulation X’s definition of delinquency applies borrowers. only for purposes of the mortgage servicing rules in mentioning forbearance or related terms Regulation X and is not intended to affect consumer H. Borrower and Servicer Engagement peaked in April 2020. Since this initial protections under other laws or regulations, such as During the Pandemic spike and subsequent decrease in May the Fair Credit Reporting Act (FCRA) and The Bureau is closely monitoring and June 2020, the volume of mortgage Regulation V. The Bureau clarified this relationship in the Bureau’s 2016 Mortgage Servicing Final Rule. mortgage servicers to determine how forbearance complaints remained steady 81 FR 72160, 72193 (Oct. 19, 2016). Under the they are working with borrowers to CARES Act amendments to the FCRA, furnishers 68 Bureau of Consumer Fin. Prot., Supervisory are required to continue to report certain credit further guidance on furnishers’ obligations under Highlights COVID–19 Prioritized Assessments obligations as current if a consumer receives an the FCRA related to the COVID–19 pandemic). Special Edition, Issue 23, (January 2021), https:// accommodation and is not required to make files.consumerfinance.gov/f/documents/cfpb_ 63 Supra note 7 (1.77 million 90-day payments or makes any payments required supervisory-highlights_issue-23_2021-01.pdf. delinquencies plus 153k active foreclosures). pursuant to the accommodation. See Bureau of 69 64 Bureau of Consumer Fin. Prot., Complaint Consumer Fin. Prot., Consumer Reporting FAQs Id. at 3. Bulletin: Mortgage forbearance issues described in 65 Related to the CARES Act and COVID–19 Pandemic CFPB Mortgage Borrower Pandemic Report, consumer complaints (May 2021), https:// (Updated June 16, 2020), https:// supra note 5. files.consumerfinance.gov/f/documents/cfpb_ files.consumerfinance.gov/f/documents/cfpb_fcra_ 66 Id. mortgage-forbearance-issues_complaint-bulletin_ consumer-reporting-faqs-covid-19_2020-06.pdf (for 67 Id. 2021-05.pdf.

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until increasing again in March 2021. April 3, 2020 (Joint Statement), and that for assistance, promoting loss The number of borrowers selecting the announced certain supervisory and mitigation, and ultimately reducing struggling to pay mortgage issue enforcement flexibility for mortgage avoidable foreclosures and foreclosure- increased in March and April 2020. servicers in light of the national related costs. It reiterates that the That number decreased in the following emergency 71 may undermine the Bureau intends to hold mortgage months. It increased again in 2021 but proposed amendments and urged the servicers accountable for complying has only just regained pre-pandemic Bureau to revoke the Joint Statement. with Regulation X with the aim of levels.70 The Bureau is continuing to The Joint Statement provides that the ensuring that homeowners have the monitor complaint data about mortgage agencies do not intend to take opportunity to be evaluated for loss servicers. supervisory or enforcement action mitigation before the initiation of The Bureau encourages servicers to against servicers for specified delays in foreclosure. use all available tools to reach struggling sending certain notices and taking The Bureau believes that the homeowners and to do so in advance of certain actions required by Regulation flexibility provided in the Joint the end of the forbearance period and X. The Joint Statement merely expresses Statement and the clarity provided by expects servicers to handle inquiries the agencies’ intent regarding the FAQs enable servicers to provide promptly, to evaluate income fairly, and enforcement and supervision priorities borrowers with timely assistance. The to work with borrowers throughout the and does not alter existing legal Bulletin reinforces the Bureau’s loss mitigation process. requirements, including a borrower’s expectation that all borrowers are treated fairly and have the opportunity III. Summary of the Rulemaking private right of action under § 1024.41. to get the assistance they need. The Process The Bureau also issued FAQs on April 3, 2020 as a companion to the Joint Bureau believes that these statements of On April 5, 2021, the Bureau issued Statement to provide mortgage servicers supervisory and enforcement policy are a proposed rule to encourage servicers with enhanced clarity about existing consistent with the final rule. The and borrowers to work together on loss flexibility in the mortgage servicing Bureau will continue to engage in mitigation before the servicer can rules that they can use to help supervisory and enforcement activity to initiate the foreclosure process. The consumers during the COVID–19 ensure that mortgage servicers are comment period closed on May 10, pandemic.72 Those FAQs state meeting the Bureau’s expectations 2021. unequivocally that servicers must regarding the provision of effective In response to the proposal, the comply with Regulation X during the assistance to borrowers and prevention Bureau received over 200 comments COVID–19 pandemic emergency. of avoidable foreclosures. from individual consumers, consumer In addition, the Bureau recently IV. Legal Authority advocate commenters, State Attorneys released a Compliance Bulletin and General, industry, and others. Many Policy Guidance (Bulletin) announcing The Bureau is finalizing this rule commenters expressed general support the Bureau’s supervision and pursuant to its authority under RESPA for the proposed rule, articulating, for enforcement priorities regarding and the Dodd-Frank Wall Street Reform example, the importance of providing housing insecurity in light of and Consumer Protection Act (Dodd- 75 clear and consistent information to heightened risks to consumers needing Frank Act), including the authorities, delinquent borrowers about all of their loss mitigation assistance in the coming discussed below. The Bureau is issuing options. Some commenters expressed months as the COVID–19 foreclosure this final rule in reliance on the same general support for the proposed rule moratoriums and forbearances end.73 authority relied on in adopting the and stated that they believed the relevant provisions of the 2013 RESPA The Bureau specified that the Bureau 76 proposal would give time for borrowers intends to continue to evaluate servicer Servicing Final Rule, as discussed in to recover economically and explore activity consistent with the Joint detail in the Legal Authority and loss mitigation options to avoid Statement, provided servicers are Section-by-Section Analysis of the 2013 foreclosure. Some commenters demonstrating effectiveness in helping RESPA Servicing Final Rule. expressed concern about the proposal consumers, in accord with the A. RESPA generally, citing, for example, the Bulletin.74 The Bulletin makes clear that proposal’s potential economic impact Section 19(a) of RESPA, 12 U.S.C. the Bureau intends to consider a 2617(a), authorizes the Bureau to on the housing market and specific servicer’s overall effectiveness in industries. The Bureau also received prescribe such rules and regulations, to communicating clearly with consumers, make such interpretations, and to grant requests from commenters to alter, effectively managing borrower requests clarify, or remove specific provisions of such reasonable exemptions for classes the proposed rule, with some focusing of transactions, as may be necessary to 71 Bureau of Consumer Fin. Prot., Joint Statement achieve the purposes of RESPA, which on issues relating to current industry on Supervisory and Enforcement Practices practices and capacity and some Regarding the Mortgage Servicing Rules in include its consumer protection highlighting the need to ensure Response to the COVID–19 Emergency and the purposes. In addition, section 6(j)(3) of CARES Act (Apr. 3, 2020), https:// RESPA, 12 U.S.C. 2605(j)(3), authorizes consumers have the best information _ files.consumerfinance.gov/f/documents/cfpb the Bureau to establish any and resources available to them at the interagency-statement_mortgage-servicing-rules- most appropriate times. As discussed in covid-19.pdf. requirements necessary to carry out more detail below, the Bureau has 72 Bureau of Consumer Fin. Prot., Bureau’s section 6 of RESPA, section 6(k)(1)(E) of considered comments that address Mortgage Servicing Rules FAQs related to the RESPA, and 12 U.S.C. 2605(k)(1)(E) and COVID–19 Emergency (Apr. 3, 2020), https:// authorizes the Bureau to prescribe issues within the scope of the proposed _ files.consumerfinance.gov/f/documents/cfpb regulations that are appropriate to carry rule in adopting this final rule. mortgage-servicing-rules-covid-19_faqs.pdf. In addition, some commenters 73 86 FR 17897 (Apr. 7, 2021). out RESPA’s consumer protection expressed the view that the statement 74 News Release, Bureau of Consumer Fin. Prot., that the Bureau, along with other CFPB Compliance Bulletin Warns Mortgage 75 Dodd-Frank Wall Street Reform and Consumer Servicers: Unprepared is Unacceptable (Apr. 21, Protection Act, Public Law 111–203, 124 Stat. 1376 Federal and State agencies, issued on 2021), https://www.consumerfinance.gov/about-us/ (2010). newsroom/cfpb-compliance-bulletin-warns- 76 2013 RESPA Servicing Final Rule, supra note 70 Id. mortgage-servicers-unprepared-is-unacceptable/. 11.

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purposes. The consumer protection In light of these unique consumer financial products or purposes of RESPA include ensuring circumstances, the Bureau’s services.78 that servicers respond to borrower interventions are designed to provide In addition, section 1032(a) of the requests and complaints in a timely advance notice to borrowers about Dodd-Frank Act authorizes the Bureau manner and maintain and provide foreclosure avoidance options and to prescribe rules to ensure that the accurate information, helping borrowers forbearance termination dates, as well as features of any consumer financial prevent avoidable costs and fees, and to provide new procedural safeguards. product or service, both initially and facilitating review for foreclosure The interventions aim to help borrowers over the term of the product or service, avoidance options. The amendments to understand their options and encourage are fully, accurately and effectively Regulation X in this final rule are them to seek available loss mitigation disclosed to consumers in a manner that intended to achieve some or all these options at the appropriate time while permits consumers to understand the purposes. also allowing sufficient time for costs, benefits, and risks associated with Specifically, and as described below, servicers to conduct a meaningful the product or service, in light of the during the COVID pandemic, borrowers review of borrowers for such options in facts and circumstances. have faced unique circumstances the present circumstances that the V. Section-by-Section Analysis including potential economic hardship, existing rules were not designed to Section 1024.31 Definitions health conditions, and extended periods address. of forbearance. Because of these unique B. Dodd-Frank Act COVID–19-Related Hardship circumstances, the procedural Section 1022(b)(1) of the Dodd-Frank The Bureau proposed to define a new safeguards under the 2013 RESPA Act, 12 U.S.C. 5512(b)(1), authorizes the term, ‘‘a COVID–19-related hardship,’’ Servicing Final Rule and subsequent Bureau to prescribe rules ‘‘as may be for purposes of subpart C. The proposal amendments to date, may not have been necessary or appropriate to enable the defined COVID–19-related hardship to sufficient to facilitate review for Bureau to administer and carry out the mean a financial hardship due, directly foreclosure avoidance. Specifically, the purposes and objectives of the Federal or indirectly, to the COVID–19 Bureau is concerned that the present consumer financial laws, and to prevent emergency as defined in the circumstances may interfere with these evasions thereof.’’ RESPA is a Federal Coronavirus Economic Stabilization borrowers’ ability to obtain and consumer financial law. Act, section 4022(a)(1) (15 U.S.C. understand important information that The authority granted to the Bureau in the existing rule aims to provide Dodd-Frank Act section 1032(a) is broad 78 The Bureau is unaware of research that borrowers regarding the foreclosure and empowers the Bureau to prescribe explicitly investigates the link between COVID–19- avoidance options available to them. As related stress and comprehension of information rules regarding the disclosure of the about forbearance and foreclosure and solicited a result, the Bureau believes that a ‘‘features’’ of consumer financial comment on available evidence. No commenters substantial number of borrowers will protection products and services provided additional evidence. However, previous not have had a meaningful opportunity generally. Accordingly, the Bureau may research demonstrates that prolonged or excessive to pursue foreclosure avoidance options stress can impair decision-making and may be prescribe rules containing disclosure associated with reduced cognitive control, before exiting their forbearance or the requirements even if other Federal including in financial contexts. See, e.g., Katrin end of current foreclosure moratoria. consumer financial laws do not Starcke & Matthias Brand, Effects of stress on The Bureau is also concerned that specifically require disclosure of such decisions under uncertainty: A meta-analysis, 142 Psych. Bulletin 909 (2016), https://doi.apa.org/doi/ based on the unique circumstances features. In addition, section 1032(a) of 10.1037/bul0000060. Further research has shown described above, there exists a the Dodd-Frank Act authorizes the that thinking that one is or could get seriously ill significant risk of a large number of Bureau to prescribe rules to ensure that can lead to stress that negatively affects consumer the features of any consumer financial decision-making. See, e.g., Barbara Kahn & Mary potential borrowers seeking foreclosure Frances Luce, Understanding high-stakes consumer avoidance options in a relatively short product or service, both initially and decisions: mammography adherence following time period. Such a large wave of over the term of the product or service, false-alarm test results, 22 Marketing Sci. 393 borrowers could overwhelm servicers, are fully, accurately and effectively (2003), https://doi.org/10.1287/ disclosed to consumers in a manner that mksc.22.3.393.17737. Additionally, research potentially straining servicer capacity conducted in the last year has identified substantial and resulting in delays or errors in permits consumers to understand the variability in (1) COVID–19-related anxiety and processing loss mitigation requests.77 costs, benefits, and risks associated with traumatic stress, which has been linked to These strains on servicer capacity the product or service, in light of the consumer behavior including panic-buying; and (2) facts and circumstances. perceived threats to physical and psychological coupled with potential fiduciary well-being. See, e.g., Steven Taylor et al., COVID obligations to foreclose could result in Dodd-Frank Act section 1032(c) stress syndrome: Concept, structure, and correlates, some servicers failing to meet required provides that, in prescribing rules 37 Depression & Anxiety 706 (2020), https:// timeline and accuracy obligations as pursuant to Dodd-Frank Act section doi.org/10.1002/da.23071; Frank Kachanoff et al., 1032, the Bureau ‘‘shall consider Measuring realistic and symbolic threats of COVID– well as other obligations under the 19 and their unique impacts on well-being and existing rule with resulting harm to available evidence about consumer adherence to public health behaviors, Soc. Psych. borrowers. awareness, understanding of, and & Personality Sci. 1 (2020), https:// responses to disclosures or journals.sagepub.com/doi/pdf/10.1177/ communications about the risks, costs, 1948550620931634. Taken together, the available 77 The Bureau recognizes that other Federal evidence suggests that experiencing heightened agencies may take steps to protect borrowers from and benefits of consumer financial stress and anxiety can impair decision-making in avoidable foreclosures in the aftermath of the products or services.’’ 12 U.S.C. 5532(c). financial contexts, and this association may be pandemic in light of the number of borrowers Accordingly, in developing the final particularly strong during the COVID–19 pandemic. exiting forbearance and an associated increased rule under Dodd-Frank Act section In addition, the Bureau’s assessment of the 2013 need for loss mitigation assistance. The Bureau RESPA Servicing Final Rule in 2019 analyzed the believes that these efforts would be focused on 1032(a), the Bureau has considered effects of the early intervention disclosures and federally backed mortgage loans. In that event, the available studies, reports, and other found that after the effective date of the early final rule may have less impact on those loans. evidence about consumer awareness, intervention requirements, delinquent borrowers Nevertheless, even in that circumstance, the Bureau understanding of, and responses to were somewhat more likely than they were pre-Rule believes that the rule is necessary to serve the to start applying for loss mitigation earlier in purposes of RESPA with respect to private mortgage disclosures or communications about delinquency. 2013 RESPA Servicing Rule loans. the risks, costs, and benefits of Assessment Report, supra note 11, at 113.

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9056(a)(1)). The Bureau solicited Section 1024.39 Early Intervention As discussed in more detail below comment on this proposed definition. and in the section-by-section analysis 39(a) Live Contact A few commenters, including some for § 1024.39(e), generally the comments industry commenters and individuals, Currently, § 1024.39(a) provides that a received on proposed § 1024.39(a) stated that the definition was too broad servicer must make good faith efforts to supported the changes to § 1024.39(a) and would include individuals with establish live contact with delinquent and (e). Among those comments, the hardships that commenters alleged were borrowers no later than the borrower’s Bureau received a couple of comments not due to the COVID–19 emergency. 36th day of delinquency and again no specific to the proposed amendments to Others urged the Bureau to adopt a later than 36 days after each payment § 1024.39(a). A consumer advocate definition that more precisely detailed due date so long as the borrower commenter suggested the Bureau should the amount of financial loss sufficient to remains delinquent.80 Promptly after include additional amendments to constitute a financial hardship. establishing live contact, the servicer § 1024.39(a) commentary to further the The Bureau declines to narrow the must inform the borrower about the goals of and properly incorporate definition as requested. The Bureau availability of loss mitigation options, if proposed § 1024.39(e). The commenter modeled this definition after section appropriate.81 Current comment 39(a)– encouraged the Bureau to amend 4022 of the CARES Act, which 4.i clarifies that the servicer has the comment 39(a)–3, which addresses good established the forbearance program discretion to determine whether it is faith efforts to establish live contact, in made available for borrowers with appropriate to inform the borrower of light of proposed § 1024.39(e). They also federally backed mortgages. Servicers loss mitigation options.82 Current encouraged the Bureau to further amend have utilized this definition since comment 39(a)–4.ii, in part, clarifies comment 39(a)–4.ii, which clarifies when the servicer must promptly inform March 23, 2020 when the CARES Act that if the servicer determines it is a borrower about the availability of loss took effect and have experience with its appropriate, the servicer need not notify mitigation options, to address when the application. A new more tailored borrowers of specific loss mitigation written notice required under definition would be harder for servicers options, but rather may provide a § 1024.39(b)(2) may be an alternative for to implement before the rule takes general statement that loss mitigation live contact during the period effect. options may apply.83 The servicer is not required to establish or make good faith § 1024.39(e) is effective. Additionally, The Bureau also received a suggestion an industry commenter discussed how during its interagency consultation efforts to establish live contact with the borrower if the servicer has already § 1024.39(e) intersects with the process that the Bureau should tie the guidance provided in existing comment definition to the national emergency established and is maintaining ongoing contact with the borrower under the loss 39(a)–6, indicating that it felt the Bureau itself rather than the national emergency should not require § 1024.39(e) under mitigation procedures under as defined in section 4022 of the CARES the circumstances described in § 1024.41.84 Act because the covered period of comment 39(a)–6. section 4022 of the CARES Act is As discussed below in the section-by- For the reasons discussed below, the undefined and the reference to that section analysis of § 1024.39(e), the Bureau is adopting the amendments to section may cause confusion. In Bureau proposed to add temporary § 1024.39(a) and commentary as addition, the March 13, 2020 national additional early intervention live proposed, with additional revisions to emergency referenced in section 4022 of contact requirements for servicers to comments 39(a)–3 and 39(a)–6 to the CARES Act was continued on provide specific information about address certain suggestions raised by February 24, 2021.79 Even though the forbearances and loss mitigation options commenters or points of clarity, and to CARES Act section referenced in the during the COVID–19 emergency. The make certain conforming changes given proposal refers to the national Bureau proposed conforming the revisions to the foreclosure review emergency declared on March 13, 2020, amendments to § 1024.39(a) and related period in § 1024.41(f)(3). Currently, it is possible that the lack of clarity comments 39(a)–4–i and –ii 85 to comment 39(a)–3 clarifies that good about the covered period in section incorporate references to proposed faith efforts to establish live contact for 4022 itself may create confusion. The § 1024.39(e). purposes of § 1024.39(a) consist of Bureau is revising the definition for reasonable steps, under the clarity. 80 Small servicers, as defined in Regulation Z, 12 circumstances, to reach a borrower. For the reasons discussed above, the CFR 1026.41(e)(4), are not subject to these Those steps may depend on factors, requirements. 12 CFR 1024.30(b)(1). such as the length of the borrower’s Bureau is finalizing the definition of 81 12 CFR 1024.39(a). delinquency, as well as the borrower’s COVID–19-related hardship to mean a 82 12 CFR 1024.39(a); Comment 39(a)–4.i. financial hardship due, directly or 83 12 CFR 1024.39(a); Comment 39(a)–4.ii. failure to respond to a servicer’s indirectly, to the national emergency for 84 12 CFR 1024.39(a); Comment 39(a)–6. repeated attempts at communication. the COVID–19 pandemic declared in 85 When amending commentary, the Office of the The commentary provides examples Proclamation 9994 on March 13, 2020 Federal Register requires reprinting of certain illustrating these factors, including that (beginning on March 1,2020) and subsections being amended in their entirety rather good faith efforts to establish live than providing more targeted amendatory contact with an unresponsive borrower continued on February 24, 2021, in instructions and related text. The sections of accordance with section 202(d) of the commentary text included in this document show with six or more consecutive missed National Emergencies Act (50 U.S.C. the language of those sections with the changes as payments might require no more than 1622(d)). adopted in this final rule. In addition, the Bureau including a sentence requesting that the is releasing an unofficial, informal redline to assist borrower contact the servicer with industry and other stakeholders in reviewing the 79 Presidential Action, The White House, Notice changes this final rule makes to the regulatory and regard to the delinquencies in the on the Continuation of the National Emergency commentary text of Regulation X. This redline is periodic statement or in an electronic Concerning the Coronavirus Disease 2019 (COVID– posted on the Bureau’s website with the final rule. communication. 19) Pandemic (Feb. 24, 2021), https:// If any conflicts exist between the redline and the Given the length of forbearance www.whitehouse.gov/briefing-room/presidential- text of Regulation X or this final rule, the actions/2021/02/24/notice-on-the-continuation-of- documents published in the Federal Register and programs during the pandemic, the the-national-emergency-concerning-the- the Code of Federal Regulations are the controlling Bureau is revising comment 39(a)–3 to coronavirus-disease-2019-covid-19-pandemic/. documents. specify that if a borrower is in a

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situation such that the additional live more than provide a sentence mitigation application and reasonable contact information is required under encouraging unresponsive borrower diligence requirements. The Bureau § 1024.39(e) or if a servicer plans to rely contact to prove they have completed believes this revision will help to on the temporary special COVID–19 loss the temporary special COVID–19 loss prevent instances where borrowers miss mitigation procedural safeguards in mitigation procedural safeguards. To opportunities to submit loss mitigation § 1024.41(f)(3)(ii)(C)(1), servicers doing achieve the goals of § 1024.39(e) applications because they only receive no more than including a sentence in discussed in the proposal to Regulation loss mitigation information at the written or electronic communications X and the goals of new beginning of their forbearance program, encouraging the borrower to establish § 1024.41(f)(3)(ii)(C), in these and no other contact until foreclosure is live contact are not taking reasonable circumstances presented by the COVID– imminent. However, the Bureau is not steps under the circumstances to make 19 pandemic, good faith efforts to removing this guidance altogether. As good faith efforts to establish live establish live contact require a higher discussed by the commenter and contact. When making good faith efforts standard of conduct. explained in the 2014 RESPA Servicing to establish live contact with borrowers For similar reasons, the Bureau is also Proposed Rule 86, the Bureau believes in the circumstances described in amending comment 39(a)–6. As when done properly, established and § 1024.39(e), generally, reasonable steps identified by a commenter, without ongoing loss mitigation communication to make good faith efforts to establish revision, current comment 39(a)–6 that is maintained can work as well as live contact must include telephoning might be interpreted to allow for a lower live contact to encourage and help the borrower on one or more occasion standard of ongoing contact than is borrowers file loss mitigation at a valid telephone number, although necessary to assist borrowers in these applications earlier in the forbearance they can include sending written or circumstances. Existing comment 39(a)– program or delinquency, timing which electronic communications encouraging 6 says, in part, that if the servicer has is beneficial to both the servicer and the the borrower to establish live contact established and is maintaining ongoing borrower under the current with the servicer, in addition to those contact with the borrower under the loss circumstances. telephone calls. While the Bureau mitigation procedures under § 1024.41, The Bureau is not further revising believes that it should be apparent that the servicer complies with § 1024.39(a) comment 39(a)–4.ii as suggested by a if either § 1024.39(e) or and need not otherwise establish or consumer advocate commenter. § 1024.41(f)(3)(ii)(C) apply, these unique make good faith efforts to establish live Comment 39(a)–4.ii provides, in part, circumstances present factors that differ contact. The Bureau is revising this that, if appropriate, a servicer may from the existing guidance in comment comment to add that if a borrower is in satisfy the requirement in § 1024.39(a) 39(a)–3 such that the example would a situation such that the additional live to inform a borrower about loss not apply in those cases, the Bureau is contact information is required under mitigation options by providing the persuaded that the revision is necessary § 1024.39(e) or if a servicer plans to rely written notice required by to ensure clarity. on the temporary special COVID–19 loss § 1024.39(b)(1), but the servicer must mitigation procedural safeguards in The Bureau also believes this provide such notice promptly after the § 1024.41(f)(3)(ii)(C)(1), then certain loss servicer establishes live contact. The clarification as to good faith efforts is mitigation related communications appropriate during the unique existing requirement in § 1024.39(a) to alone are not enough for compliance inform a borrower about the availability circumstances presented by the COVID– with § 1024.39(a). The Bureau is 19 pandemic emergency. As discussed of loss mitigation options that this revising the comment to specify that, in comment references is separate from the more fully in part II above, the Bureau these circumstances, the servicer is not estimates that a large number of new information requirements in maintaining ongoing contact with the § 1024.39(e). Nothing in the existing borrowers will be more than a year borrower under the loss mitigation behind on their mortgage payments, rule would prevent compliance with procedures under § 1024.41 in a way both the option to inform these including those in 18-month that would comply with § 1024.39(a) if forbearance programs, and many will borrowers about the availability of loss the servicer has only sent the notices mitigation options as provided in have benefited from temporary required by § 1024.41(b)(2)(i)(B) and comment 39(a)–4.ii and the requirement foreclosure protections due to various § 1024.41(c)(2)(iii) and has had no to provide these borrowers the specified State and Federal foreclosure moratoria. further ongoing contact with the additional information in § 1024.39(e) As explained in the proposal, to borrower concerning the borrower’s loss promptly after establishing live contact. encourage these borrowers to obtain loss mitigation application. mitigation to prevent avoidable As discussed above, the Bureau 39(e) Temporary COVID–19-Related foreclosures and given the length of believes this higher standard of conduct, Live Contact delinquency during these unique which it notes some servicers are As discussed more fully above in the circumstances, the Bureau believes that already holding themselves to, is additional efforts are necessary to reach section-by-section analysis of necessary under the current § 1024.39(a), currently, a servicer must borrowers at this time. Additionally, for circumstances presented by COVID–19 make good faith efforts to establish live the reasons discussed more fully in the emergency to help ensure that contact with delinquent borrowers no section-by-section analysis of additional efforts are taken to reach later than the borrower’s 36th day of § 1024.41(f)(3)(ii)(C), because delinquent borrowers, including those delinquency and again no later than 36 compliance with § 1024.39(a) during a that are unresponsive. In line with the days after each payment due date so certain timeframe is one of several goals discussed in the proposal for long as the borrower remains temporary procedural safeguards that § 1024.39(e), the Bureau believes this delinquent.87 Promptly after servicers may rely on to comply with revision will help clarify and ensure establishing live contact, the servicer the temporary special COVID–19 loss that borrowers in these circumstances mitigation procedural safeguards in are receiving ongoing communication 86 79 FR 74175, 74199–74200 (Dec. 15, 2014). § 1024.41(f)(3)(ii)(C), the Bureau has about loss mitigation options, whether it 87 Small servicers, as defined in Regulation Z, 12 concluded that it must be explicitly be through live contact communications CFR 1026.41(e)(4), are not subject to these clear that servicers are required to do or through completion of a loss requirements. 12 CFR 1024.30(b)(1).

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must inform the borrower about the Bureau should rely on existing forbearance options and other loss availability of loss mitigation options, if § 1024.39(a) requirements and provide mitigation options during early appropriate.88 COVID–19-specific examples in the intervention and requested that the commentary to explain how those Bureau require additional information The Bureau’s Proposal provisions apply under the current in some cases. For example, a couple of The Bureau proposed to add circumstances. commenters asserted that, not only § 1024.39(e) to require temporary However, in general, a majority of should servicers be required to provide additional actions in certain commenters that addressed proposed all forbearance and loss mitigation circumstances when a servicer § 1024.39(e) supported the proposed options available to the borrower, they establishes live contact with a borrower amendments. Some industry should also be required to provide all during the COVID–19 emergency. These commenters provided general support. possible forbearance and loss mitigation temporary requirements would have Other commenters, industry and options, regardless of availability to the applied for one year after the effective otherwise, supported proposed borrower. The commenters that date of the final rule. In general, § 1024.39(e) but requested certain supported requiring servicers to provide proposed § 1024.39(e)(1) would have revisions. Below is a discussion of all available forbearance options and required servicers to ask whether comments received on the overall other loss mitigation options during borrowers not yet in a forbearance proposed requirements in § 1024.39(e). early intervention cited concerns that program at the time of the live contact See the section-by-section analyses of servicer staff may not be properly were experiencing a COVID–19-related § 1024.39(e)(1) and (2) for a discussion trained to accurately identify which loss hardship and, if so, to list and briefly of comments received relating to each of mitigation options are appropriate for describe available forbearance programs those specific proposed provisions. the borrower, and provided qualitative to those borrowers and the actions a Concerns about balancing borrower evidence of servicer staff providing borrower must take to be evaluated. In access to information and servicer inaccurate forbearance and other loss general, for borrowers in forbearance discretion. Several commenters mitigation information. These programs at the time of live contact, discussed how proposed § 1024.39(e) commenters also indicated that unless proposed § 1024.39(e)(2) would have would affect the balance between borrowers receive information about all required servicers to provide specific borrower access to information as they available loss mitigation options, if not information about the borrower’s make loss mitigation decisions and all loss mitigation options, they may not current forbearance program and list servicer discretion in how to facilitate have all necessary information to and briefly describe available post- borrower understanding and prevent determine and advocate for the best loss forbearance loss mitigation options and confusion. Several industry commenters mitigation solution for their particular the actions a borrower would need to and trade groups expressed the desire situation. take to be evaluated for such options that the Bureau continue to provide Both sets of comments reiterate during the last required live contact servicers with discretion as to which concerns discussed in the section-by- made before the end of the forbearance forbearance options and other loss section analysis of proposed period. For the reasons discussed below, mitigation options are listed and § 1024.39(e). The Bureau is aware of the Bureau is finalizing § 1024.39(e) described to borrowers promptly after evidence supporting assertions that generally as proposed, with some live contact is established, even as it some servicers are providing consistent revisions to address certain comments applies to the information required and accurate information, but also received, including revisions to the under § 1024.39(e). The commenters evidence that some borrowers are not sunset date of this provision, adding a expressed concern that if servicers receiving consistent and accurate requirement to provide certain housing provided information about all available information as they seek loss mitigation counselor information, revising the forbearance options or other loss assistance during the pandemic.89 The requirement that the servicer ask the mitigation options, it may be Bureau is not persuaded that providing borrower to assert a COVID–19-related overwhelming. Additionally, those the borrower with information on all hardship, and revising the applicable commenters indicated that providing possible loss mitigation options, time period when the servicer must information about all available regardless of whether those options are provide the additional information to forbearance options and loss mitigation available to the borrower, is beneficial. borrowers who are in a forbearance options may cause borrower frustration The Bureau agrees that it is essential at program. during the loss mitigation application this time to provide the borrower with process. For example, commenters as much loss mitigation information as Comments Received asserted that, while certain loss possible to support borrowers in their In response to proposed § 1024.39(e), mitigation options may be available, decisions as to how to address their the Bureau received comments from review processes, such as investor delinquency in a way that is best for trade associations, financial institutions, ‘‘waterfall’’ requirements, may mean not their situation. Nevertheless, the Bureau consumer advocate commenters, all available options are offered to the believes providing all possible loss government entities, and individuals. borrower. Further, the commenters mitigation options, even those that are Some commenters opposed the indicated eligibility and availability of not applicable to the borrower, would provision entirely. A few industry forbearance options and other loss increase borrower confusion. commenters asserted the proposal was mitigation options may change after the However, the Bureau is also not unnecessary, stating that servicers were live contact, particularly if the borrower persuaded that allowing complete already performing the proposed is on the cusp of certain criteria, such servicer discretion as to which, if any, requirements and the proposal as delinquency length, at the time of the specific loss mitigation options are duplicated most GSE and FHA live contact. discussed is sufficient in the current requirements. Additionally, a few In contrast, several consumer crisis. The concerns about servicers industry commenters asserted that, advocate commenters and an industry sometimes providing inconsistent and instead of adding § 1024.39(e), the commenter indicated that borrowers inaccurate information during this would benefit from receiving a list and 88 12 CFR 1024.39(a). brief description of all available 89 86 FR 18840 at 18851 (Apr. 9, 2021).

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critical period for loss mitigation information to the notice.90 In addition, where this information is located and assistance seem only more likely to the rule does not prevent a servicer from how they may access it. Additionally, continue or increase as the expected following-up on its live contact with this requirement may help address volume of borrowers needing the specific information in a written concerns about servicer resource assistance increases. Further, the communication.91 capacity, as discussed in the proposal, anticipated forthcoming expiration of Require provision of HUD given that homeownership counselors many COVID–19-related programs may homeownership counselors or can help answer borrower’s questions also contribute to these concerns, as counseling organizations list. Several regarding their loss mitigation options. fast-paced or frequent changes in loss consumer advocate commenters and The Bureau notes that servicers are mitigation program availability or State Attorneys General commenters already required to provide certain criteria have been noted to cause some suggested the Bureau should require information about homeownership consistency and accuracy issues with servicers to provide information to counseling to borrowers,92 and that some servicers. For these reasons, the borrowers about the Department of servicers may comply with this Bureau concludes that the information Housing and Urban Development (HUD) provision by referencing existing required under final § 1024.39(e)(1) and homeownership counseling as part of disclosures, further minimizing servicer (2), as discussed in more detail in the the additional information required by burden. section-by-section analyses of those proposed § 1024.39(e). Commenters Exempt federally backed mortgages. provisions below, strikes the correct stated that homeownership counselors One industry trade group requested the balance during of the pandemic. are often able to assist borrowers that Bureau exempt ‘‘federally backed’’ Require information in a written mistrust their servicer, or have difficulty mortgage loans from proposed disclosure. Certain consumer advocate understanding their options or how to § 1024.39(e). The commenter indicated commenters, industry commenters, and submit a loss mitigation application. that these mortgages are already subject State government commenters requested The Bureau is persuaded that some to Federal investor or other Federal the Bureau consider requiring new borrowers may benefit from guarantor requirements that are similar written disclosures as part of the homeownership counselor assistance to or more extensive than those proposed early intervention during the pandemic. However, given proposed. amendments. A consumer advocate commenter concerns about the amount The Bureau is not persuaded that commenter and a State government of information required by § 1024.39(e) exempting federally backed mortgages group suggested the Bureau require the that servicers must convey promptly from the § 1024.39(e) requirements is additional content in proposed after establishing a live contact, the necessary. The Bureau believes final § 1024.39(e) to be provided in a written Bureau does not believe provision of § 1024.39(e) does not conflict with GSE notice or added to the existing 45-day detailed homeownership counselor or FHA requirements and does not add additional burdens on servicers of those written notice requirements in contact information during the live loans. Further, the Bureau also believes § 1024.39(b). An industry group and a contact would be beneficial to exempting federally backed mortgages State government group suggested that borrowers in these circumstances. from this provision may add the Bureau add written pre-foreclosure Instead, the Bureau is persuaded that unnecessary implementation notice requirements, similar to those in borrowers may benefit from a reference complexity that may affect the ability of New York, Iowa, and Washington. to where they can access servicers to provide critical assistance to The Bureau is not finalizing any new homeownership counselor contact borrowers at this time. written disclosures or amendments to information. Thus, as discussed more fully in the section-by-section analyses Require translation for limited English existing written disclosure proficiency borrowers. A consumer requirements. Given the expedited of § 1024.39(e)(1) and (2), the Bureau is adding a requirement that the servicer advocate commenter and a State timeframe and urgent necessity for this Attorney General commenter advocated rulemaking, there is not sufficient time must identify at least one way that the borrower can find contact information for adding a translation requirement to to complete consumer testing to help proposed § 1024.39(e) to assist limited ensure any new or updated required for homeownership counseling services, such as referencing the borrower’s English proficiency borrowers. The disclosures would sufficiently assist Bureau is not revising § 1024.39(e) to borrowers, rather than contributing to periodic statement. Other examples servicers may choose to reference require translation for limited English any confusion. Additionally, the Bureau proficiency borrowers. In the interest of believes adding new written disclosure include, for example, the Bureau’s website, HUD’s website, or the 45-day issuing the final rule on an expedited requirements at this time could be basis to bring relief as soon as possible harmful to borrowers during the unique written notice required by § 1024.39(b), but the servicer need only include one to the largest number of borrowers, the circumstances presented by the COVID– Bureau did not undertake to incorporate 19 emergency, as servicers would need reference. By requiring that servicers identify at least one way that the a requirement to provide disclosures in to spend time and resources languages other than English or to implementing those disclosures, rather borrower can find contact information for homeownership counseling services, incorporate model forms in other than focusing their time and resources languages. This does not mean the on assisting borrowers quickly. Given the Bureau believes it will remind borrowers, especially those who believe Bureau will or will not take that step in the upcoming expected surge in a future rulemaking. Additionally, borrowers exiting forbearance, the they would benefit from homeownership counselor assistance, of Regulation X permits servicers to Bureau believes those resources are provide disclosures in languages other better spent assisting borrowers. The 90 Comment 39(b)(1)–1 states, in part, that a than English.93 The Bureau both permits Bureau notes that nothing in the rule servicer may provide additional information that and encourages servicers to ascertain prevents servicers from listing and the servicer determines would be helpful. the language preference of their briefly describing specific loss 91 For example, comment 39(a)–4.ii states, in part, borrowers, when done in a legal manner mitigation options available to the that a servicer may inform borrowers about the availability of loss mitigation options orally, in borrower in the existing 45-day written writing, or through electronic communication 92 See, e.g., 12 CFR 1026.41(d)(7)(v). notice or from adding any additional promptly after the servicer establishes live contact. 93 See 12 CFR 1024.32(a)(2).

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and without violating the Equal Credit date to June 30, 2022, the anticipated date. The Bureau believes this change to Opportunity Act or Regulation B, to be end date of certain Federal COVID–19- the sunset date will address comments responsive to borrower needs during related forbearance programs. indicating the proposed date conflicted this critical time for borrower The Bureau is persuaded a sunset date with guidance from other agencies. communication.94 The Bureau will be for § 1024.39(e) is appropriate and Additionally, the Bureau believes this providing on its website a Spanish provides servicers with certainty as to change will address commenter language translation of Appendix MS–4 how long they are required to provide concerns that the provision should of Regulation X that servicers may use, the additional information during live sunset with the circumstances of the as permitted by applicable law. contacts. However, the Bureau is pandemic. Further, the Bureau believes Electronic media use for live contacts. revising the sunset date to better align this time period is necessary to allow A consumer advocate commenter and with the pandemic, rather than the servicers to reach most borrowers. State Attorney General commenter effective date of this final rule. The While, as discussed above in part II, the requested the Bureau provide guidance Bureau is persuaded that aligning the anticipated surge and largest amount of about which electronic communication sunset of § 1024.39(e) more closely to strain on servicer resources is expect to media satisfy the live contact the pandemic is necessary to prevent begin to decline after January 1, 2022, requirements. The Bureau has conflicts between § 1024.39(e) and the volume of borrowers expected to previously declined to require or pandemic-related investor or guarantor exit forbearance each month will remain explicitly permit certain methods of requirements, such as those related to high beyond that date and the unique electronic media for required additional communications and loss circumstances of the pandemic, communications under the mortgage mitigation options. including the unusually long servicing rules, stating it believes it As such, § 1024.39(e) will sunset on delinquencies, will persist. The Bureau would be most effective to address the October 1, 2022. The Bureau anticipates concludes the sunset date for use of such media after further study that COVID–19-related forbearance § 1024.39(e) must cover both the and outreach to enable the Bureau to programs will be offered through at least expiration of COVID–19-related develop principles or standards that September 30, 2021, and anticipates that forbearance programs, which would be would be appropriate on an industry- most borrowers utilizing the full 360 relevant for the requirements for wide basis.95 Similarly now, the Bureau days offered under the CARES Act will § 1024.39(e)(1), and also borrowers is not finalizing language in the rule to exit forbearance by September 30, 2022. exiting COVID–19-related forbearance discuss specific electronic media use for Once COVID–19-related forbearance programs who entered on the last early intervention live contact programs expire and borrowers exit the possible day and utilized a full 12 requirements, but notes that certain applicable forbearance programs, the months of forbearance, which would be electronic media, such as live chat circumstances that warranted the relevant for the requirements in functions, can, in certain circumstances, additional information in § 1024.39(e) § 1024.39(e)(2). To cover both groups of be compared to telephone or in-person will no longer apply. The Bureau borrowers, and particularly to reach all conversations that are permitted as live anticipates that will occur sometime borrowers exiting the relevant contact under the rule. after September 30, 2022, but there is forbearance programs discussed in Sunset date. A few commenters significant uncertainty about exactly § 1024.39(e), the Bureau believes it is discussed the sunset date for proposed when such programs will expire. Taking necessary to extend this provision § 1024.39(e). These commenters that uncertainty into consideration, to beyond the anticipated surge of generally supported having a sunset best ensure a sufficient period of borrowers existing forbearance, unlike date. However, they differed about coverage, the Bureau concludes that it is other provisions in this rule. whether the proposed August 31, 2022 appropriate to extend the proposed Final Rule sunset date was the appropriate choice. sunset date. The Bureau notes that the A government commenter and an final sunset date will align with the As discussed in more detail in the industry commenter supported the mandatory compliance date for the final section-by-section analyses of existing sunset date, suggesting it was rule titled Qualified Mortgage Definition § 1024.39(e)(1) and (2) below, the long enough, with one indicating it under the Truth in Lending Act Bureau is finalizing § 1024.39(e) should not be shortened. Conversely, (Regulation Z): General QM Loan generally as proposed, with some another industry commenter asserted Definition (General QM Final Rule). The revisions to address certain comments the proposed sunset date conflicted Bureau recently extended, that received, including revisions to the with certain existing GSE requirements mandatory compliance date, in part, to sunset date of this provision, adding a and requested the sunset date correlate preserve flexibility for consumers requirement to provide certain with the emergency declaration or affected by the COVID–19 pandemic homeownership counseling COVID–19-related forbearance program and its economic effects. As similarly information, revising the requirement end dates. The Bureau also received a noted in that rule, the Bureau will that the servicer ask the borrower to suggestion during its interagency continue to monitor for any assert a COVID–19-related hardship, consultation process to revise the sunset unanticipated effects of the COVID–19 and revising the applicable time period pandemic on market conditions to when the servicer must provide the 94 See Bureau of Fin. Prot., Statement Regarding determine if future changes are additional information to borrowers the Provision of Financial Products and Services to warranted. who are in a forbearance program. The Consumers with Limited English Proficiency (Jan. While commenters suggested the Bureau believes the addition of 13, 2021), https://www.consumerfinance.gov/rules- Bureau could tie the sunset date to the § 1024.39(e) will help encourage and policy/notice-opportunities-comment/open-notices/ statement-regarding-the-provision-of-financial- end of these loss mitigation programs, support borrowers in seeking available products-and-services-to-consumers-with-limited- the Bureau believes that, because loss mitigation assistance during this english-proficiency/; 86 FR 6306 (Jan. 13, 2021). See investors and guarantors may differ as to unprecedented time. Section 1024.39(e) also 82 FR 55810 (Nov. 20, 2017). when their respective pandemic-related temporarily requires servicers to 95 See, e.g., 78 FR 10695, 10745 (Feb. 14, 2013) (discussing the suggestion to require establishing requirements will expire, it will provide specific additional information electronic portals for intake of notices of error simplify compliance for the to certain delinquent borrowers under § 1024.35(c)). requirements to sunset on a universal promptly after establishing live contact.

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As revised, the requirements apply until the steps the borrower must take to be comment asserted that requiring October 1, 2022. evaluated for loss mitigation options.96 § 1024.39(e)(1) information for all such The Bureau notes that this final rule delinquent borrowers removes the onus 39(e)(1) does not change the scope of any from borrowers to identify whether their current live contact requirements more The Bureau’s Proposal hardship qualifies as COVID–19-related. generally under § 1024.39(a). Thus, the Proposed § 1024.39(e)(1) would have A few industry commenters asserted Bureau reiterates that § 1024.39(e) does temporarily required servicers to take that servicers should have discretion to not apply if the borrower is current. The certain actions promptly after determine whether the borrower has a Bureau also notes that nothing in the establishing live contact with borrowers COVID–19-related hardship, rather than rule prevents a servicer from providing who are not currently in a forbearance asking the borrower. Further, as additional information than what is program where the owner or assignee of discussed above in the section-by- required under the rule to borrowers the borrower’s mortgage loan makes a section analysis for the definition of about forbearance programs or other loss payment forbearance program available COVID–19-Related Hardship in mitigation programs. For example, if the to borrowers experiencing a COVID–19- § 1024.31, commenters expressed forbearance program may end soon after related hardship. In those concern about servicer and borrower the live contact is established, has circumstances, proposed § 1024.39(e)(1) understanding of the term and ability to certain eligibility criteria, or is subject to would have required that the servicer accurately implement its use. investor ‘‘waterfall’’ review procedures, ask if the borrower is experiencing a The Bureau is persuaded it should a servicer may choose to discuss that COVID–19-related hardship. If the remove the requirement that servicers information with the borrower to borrower indicated they were ask borrowers whether they are attempt to prevent confusion. experiencing a COVID–19-related experiencing a COVID–19-related Additionally, both § 1024.39(e)(1) and hardship, proposed § 1024.39(e)(1) hardship, and instead require servicers (2) require servicers to provide a list of would have required the servicer to to provide certain information under forbearance programs or loss mitigation provide the borrower a list and § 1024.39(e)(1) to delinquent borrowers programs made available by the owner description of forbearance programs during the period the provision is or assignee of the borrower’s mortgage available to borrowers experiencing effective unless the borrower asserts loan to borrowers experiencing a COVID–19-related hardships and the they are not interested. The Bureau COVID–19-related hardship. The list of actions the borrower would need to take indicated in the proposal that it was forbearance programs is limited to only to be evaluated for such forbearance considering expanding this provision to those that are available at the time the programs. For the reasons discussed all delinquent borrowers not in live contact is established. The Bureau below, the Bureau is finalizing forbearance at the time live contact is has added language to both sections to § 1024.39(e)(1) generally as proposed, established. As mentioned by clarify this timing limitation. If a with some revisions to address certain commenters and in the proposal, forbearance program or loss mitigation comments received, including removing borrowers may not know or may be program is no longer available at the the requirement that the servicer ask more hesitant to assert that their time of the live contact, the servicer whether the borrower is experiencing a hardship qualifies as a COVID–19- need not include that forbearance COVID–19-related hardship, and adding related hardship. This seems program or loss mitigation program in a requirement to provide certain particularly applicable to the borrowers the list. housing counselor information. that have not yet obtained forbearance assistance. As discussed in the proposal, If a borrower’s COVID–19-related Comments Received the Bureau believes these borrowers hardship would not meet applicable may not yet have taken advantage of the eligibility criteria for a forbearance Commenters generally supported offered forbearance programs because program or a loss mitigation program, proposed § 1024.39(e)(1). One industry they may be more hesitant to assert the servicer also need not include that commenter opposed this provision hardship, may not fully trust their in the lists required by § 1024.39(e)(1) or overall, asserting servicers were already ability to receive assistance, or may not (2). However, the Bureau reiterates that performing the requirements proposed understand whether their hardship is the required information under in § 1024.39(e)(1) and that adding new COVID–19-related. By removing the § 1024.39(e) is not limited to regulatory requirements at this time will requirement that borrowers take action forbearance programs or loss mitigation further strain servicer capacity. Of those that supported the proposal, to receive the information, and instead programs specific to COVID–19 or only requiring that borrowers take action to available during the COVID–19 commenters generally suggested certain scope and content revisions, discussed be excluded, the rule helps to ensure emergency. The servicer must provide below. that borrowers are not missing information about COVID–19-specific Scope. Several commenters discussed beneficial information due to any programs, as well as any generally which borrowers would benefit from misunderstanding or hesitancy, available programs where COVID–19- proposed § 1024.39(e)(1) requirements. reducing the likelihood that target related hardships are sufficient to meet A consumer advocate commenter and borrowers may miss this important the hardship-related requirements for an individual supported the proposed information. the program. Further, the servicer must requirement that the servicer ask the However, the Bureau is also inform the borrower about program borrower to assert a COVID–19-related persuaded by commenters that some options made available by the owner or hardship. A consumer advocate delinquent borrowers may not benefit assignee of the borrower’s mortgage loan commenter suggested that the from receipt of this information. Thus, regardless of whether the option is requirements should instead apply to all the final rule continues to provide a available based on a complete loss delinquent borrowers not yet in method for borrower-initiated mitigation application, an incomplete forbearance, not just those that assert a exclusion. Unlike the proposal, the final application, or no application, to the COVID–19-related hardship. This rule will require borrowers to state that extent permitted by this rule. Finally, they are uninterested in receiving the existing rule provides guidance as to 96 12 CFR 1024.38(b)(2); 12 CFR 1024.40(b)(1)(i) information about the available what constitutes a brief description and and (ii). forbearance programs. In doing so, the

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Bureau continues to narrow the Additionally, limiting the required interested, servicers are then required to applicability of the provision to those information to just forbearance options provide a list and brief description of borrowers most likely to be first can help prevent borrowers not yet such forbearance programs, as well as experiencing a COVID–19-related in forbearance from becoming the actions the borrower must take to be hardship, without requiring borrowers overwhelmed with information, a evaluated for such forbearance who are uncertain or hesitant to opt-in concern noted by commenters as programs. In addition to the guidance to receiving this information. The discussed above. Further, the content discussed above in the section-by- Bureau believes borrowers who are required by § 1024.39(e)(1) does not section analysis for § 1024.39(e) more certain they do not have a COVID–19- replace the existing live contact generally, the Bureau notes that related hardship are likely to assert they requirements in § 1024.39(a), which particular to § 1024.39(e)(1), the do not need the additional information require that, promptly after establishing forbearance programs that servicers in § 1024.39(e)(1). Borrowers that are live contact with a borrower, the must identify also include more than certain they have a COVID–19-related servicer must inform the borrower about just short-term forbearance programs as hardship or are unsure will likely not the availability of loss mitigation defined in the mortgage servicing take such action, unless they are options, if appropriate. Thus, in some rules.97 Additionally, as discussed uninterested forbearance program cases, it may be appropriate for servicers above, the Bureau is also requiring assistance. For those borrowers that are to inform certain borrowers, such as servicers to identify at least one way unsure, the Bureau believes that those who indicate that they have that the borrower can find contact receiving this information likely will resolved their hardship, about the information for homeownership clarify whether their hardship qualifies availability of additional loss mitigation counseling services, such as referencing as COVID–19-related and will be options in addition to the information the borrower’s periodic statement. beneficial even if ultimately the required in § 1024.39(e)(1). Second, the borrower does not meet the required Bureau is not persuaded that the options 39(e)(2) hardship criteria. Further, the Bureau discussed should be all possible The Bureau’s Proposal does not believe that requiring an options, whether or not available to the assertion to be excluded, rather than an borrower through the owner or assignee Proposed § 1024.39(e)(2) would have assertion to be included, is likely to of the mortgage. The potential for temporarily required a servicer to increase the probability of borrower increased borrower confusion or provide certain information promptly confusion. As with the proposal, the frustration outweighs any potential after establishing live contact with information seems equally likely to be benefit this knowledge may provide the borrowers currently in a forbearance received by only those borrowers that borrower. program made available to those may have a COVID–19-related hardship. Final Rule experiencing a COVID–19-related Content. A few consumer advocate hardship. First, it would have required commenters indicated the Bureau For the reasons discussed in this the servicer to provide the borrower should expand § 1024.39(e)(1) to require section and in more detail below, the with the date the borrower’s current servicers to inform the borrower of all Bureau is finalizing § 1024.39(e)(1) forbearance program ends. Second, it possible or available loss mitigation generally as proposed with some would have required the servicer to options, not just the available revisions to address certain comments provide a list and brief description of forbearance options. The commenters received. The Bureau believes each of the types of forbearance § 1024.39(e)(1), as revised, will help assert that while forbearance may be extensions, repayment options and encourage borrowers not yet in beneficial for some borrowers, some other loss mitigation options made forbearance to work with their servicer delinquent borrowers may have available by the owner or assignee of the under these unique circumstances and stabilized their income and may be borrower’s mortgage loan to resolve the ready for more permanent loss avoid unnecessary foreclosures. For the reasons discussed above, the borrower’s delinquency at the end of the mitigation options. The commenters forbearance program. It also would have also assert, as discussed above in the Bureau is revising § 1024.39(e)(1) to remove the requirement that servicers required the servicer to inform the section-by-section analysis for borrower of the actions the borrower § 1024.39(e), that borrowers may benefit ask borrowers whether they are experiencing a COVID–19-related must take to be evaluated for such loss from the knowledge of all possible loss mitigation options. Proposed mitigation options, rather than those hardship before being providing the § 1024.39(e)(2) would have required the options only available to them. additional forbearance program servicer to provide the borrower with The Bureau is not persuaded that the information. Instead, the Bureau is current unique circumstances presented finalizing § 1024.39(e)(1) such that all this additional information during the by the COVID–19 emergency warrant delinquent borrowers not yet in last live contact made pursuant to requiring servicers to inform delinquent forbearance at the time live contact is existing § 1024.39(a) that occurs before borrowers who are not yet in a established will receive notification that the end of the loan’s forbearance period. forbearance program about all possible forbearance programs are available by For the reasons discussed below, the or available loss mitigation options. the owner or assignee of the borrowers’ Bureau is finalizing § 1024.39(e)(2) First, the Bureau is not persuaded that mortgage loan to borrowers generally as proposed, with some it would be beneficial to expand the experiencing COVID–19-related revisions to address certain comments content discussed to include options hardships. To provide this information, received, including revising the timing beyond forbearance programs. The the servicer need not use the exact for when this information is provided, Bureau believes that forbearance language in the regulation, and may find and adding a requirement to provide programs at this time are beneficial to a more plain-language method, such as certain housing counselor information. delinquent borrowers, given they can informing the borrower that there are provide borrowers with additional time forbearance programs available if they 97 Existing § 1024.41(c)(2)(iii) and comment 41(c)(2)(iii)–1 define short-term payment to recover from their hardships, develop are having difficulty making their forbearance program as a payment forbearance a financial plan, and apply for payments because of COVID–19. Unless program that allows the forbearance of payments permanent loss mitigation. the borrower states they are not due over periods of no more than six months.

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Comments Received believes that borrower would still persuaded by the comments that the Commenters generally supported benefit from the loss mitigation proposed approach appropriately proposed § 1024.39(e)(2). One industry information required by § 1024.39(e)(2) balances providing the borrower commenter opposed this provision and thus, it should still apply. transparency as to which loss mitigation Content. Several consumer advocate overall, asserting servicers were already options the borrower may reasonably commenters requested the Bureau performing the requirements proposed expect to potentially be reviewed for, require servicers to provide information in § 1024.39(e)(2), and that adding new with the need to prevent borrower to borrowers about all possible loss regulatory requirements at this time will confusion. Because the options mitigation options, not just those that further strain servicer capacity. Of those provided are only those that might be are available. These commenters that supported the proposal, available to the borrower, rather than all supported the Bureau in limiting options that the owner or assignee commenters generally suggested certain servicer discretion. Some indicated makes available to any borrowers, the scope, content, and timing revisions, borrowers benefit from receiving Bureau believes this will sufficiently discussed below. information about all possible loss Scope. A few commenters discussed tailor the information to the borrower’s mitigation options, even if not the scope of § 1024.39(e)(2). One particular situation. Additionally, applicable, because it allows borrowers because the rule requires only a brief individual commenter suggested the to better identify mistakes in description, as discussed further below, requirements in § 1024.39(e)(2) should information they receive. The rather than a full review of the loss apply to all delinquent borrowers commenters also asserted that available mitigation program, there will not be an during the time period, rather than just loss mitigation options should include overwhelming amount of information those in forbearance programs made those that the borrower is eligible for provided. available to borrowers experiencing a even if the investor ‘‘waterfall’’ With regard to concerns about COVID–19-related hardship at the time requirements may prevent the borrower investor waterfall requirements, the of the live contact. A couple of industry from being offered a particular option. Bureau is not persuaded these concerns commenters suggested the Bureau Conversely, feedback during an and the potential implications on should exempt borrowers that interagency consultation and a few borrower understanding justify voluntarily exit the forbearance program industry commenters expressed concern eliminating the potential benefit of the early. about requiring servicers to provide all provision of information about all of the The Bureau is not persuaded that the loss mitigation options available to the types of forbearance extension, current pandemic warrants expanding borrower. These commenters cited repayment options, and other loss the scope of § 1024.39(e)(2) to all concerns about borrower confusion. mitigation options made available to the delinquent borrowers. Delinquent They indicated that providing options borrower by the owner or assignee of the borrowers not yet in forbearance will that may not be available after review of borrower’s mortgage loan at the time of receive additional information under the loss mitigation application due to the live contact. However, as noted this final rule, as provided in investor ‘‘waterfall’’ requirements and above, if a servicer believes that a § 1024.39(e)(1). As discussed above, the changes in borrower eligibility after the borrower may be confused by the Bureau is persuaded that providing such live contact may confuse borrowers or investor’s waterfall requirements and borrowers with forbearance information make them believe they were provided the impact they may have on the loss first provides additional time for with inaccurate information. Some of mitigation options offered to the borrowers to then seek loss mitigation these commenters requested that the borrower, nothing in the rule would assistance and develop a financial plan. Bureau give servicers discretion to prevent a servicer from providing Further, the Bureau notes that the determine which loss mitigation options additional information to assist the requirements in § 1024.39(e) are in are appropriate for discussion, rather borrower in understanding how an addition to the existing requirement in than listing all available loss mitigation evaluation ‘‘waterfall’’ may affect the § 1024.39(a). Thus, even if a delinquent options, or allow generalized statements loss mitigation options for which a borrower is not in forbearance at the that loss mitigation options are borrower is reviewed and ultimately time live contact is established, if available. offered. The Bureau encourages this appropriate, a servicer is already As discussed in the proposed rule and type of transparency in required to inform the borrower about above in the section-by-section analysis communications. the availability of loss mitigation for § 1024.39(e), the Bureau believes that ‘‘Last live contact’’ timing. Several options. information about specific loss commenters discussed the proposed The Bureau is also not persuaded that mitigation options is crucial for requirement that servicers convey the an exemption from § 1024.39(e)(2) is borrowers at this time. Additionally, the information required by § 1024.39(e)(2) necessary for borrowers that exit Bureau believes that providing all during the last live contact made forbearance programs early. First, borrowers exiting forbearance with pursuant to existing § 1024.39(a) that § 1024.39(e)(2), and § 1024.39(a) more consistent information about loss occurs before the end of the loan’s broadly, only apply to delinquent mitigation options made available by forbearance program. These commenters borrowers. It seems likely that if a the owner or assignee of their mortgage supported proposed § 1024.39(e)(2) borrower is voluntarily exiting loan will address concerns about overall but suggested different timing forbearance early, it is because the consistency and accuracy with respect than the ‘‘last live contact.’’ Several borrower has the ability to bring the to pandemic-related loss mitigation industry commenters suggested the account current and the hardship has information. Bureau require servicers to provide the ended. If the borrower was current at As discussed above, the Bureau is not information during the last live contact the time the forbearance was scheduled persuaded it should expand the that is no later than 30 days before the to end, § 1024.39(e)(2), as revised, information provided to include all scheduled end of the forbearance would not apply because § 1024.39(a) possible loss mitigation options or that program, ensuring the information is not would not apply. If, however, a it should allow servicers to exercise provided on the last day of the borrower exited forbearance early but discretion about what information to forbearance program and noting that the remained delinquent, the Bureau share. As stated above, the Bureau is scheduled end date provides more

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certainty for servicers. One industry the effectiveness of the messaging.98 In first live contact made pursuant to commenter indicated that the last live addition, the Bureau is concerned that § 1024.39(a) after August 31, 2021, if the contact is too late, and that the requiring this information too early scheduled end date of the forbearance information should be provided earlier before the scheduled end date of the program occurs between August 31, in the forbearance program. A few forbearance program may not align with 2021 and September 10, 2021. consumer advocate commenters existing investor requirements, a timing Additionally, see part VI for discussion suggested the Bureau should require misalignment which may require of voluntary early compliance. duplicated efforts by servicers to contact that the contact occur 45 days before the Final Rule end of forbearance. Further, some with borrowers, burdening servicers and commenters suggested the last live potentially confusing borrowers. For the reasons discussed in this contact should be tied to the scheduled However, the Bureau agrees that the section and in more detail below, the end of forbearance programs, not the servicer should provide this information Bureau is finalizing § 1024.39(e)(2) actual end date, citing that consumers before the final day of the borrower’s generally as proposed, with some may voluntarily leave programs early or forbearance program. The Bureau does revisions to address certain comments may extend their forbearance program, not believe it is necessary to require this received. As revised, the Bureau effectively changing the actual end date. information under § 1024.39(e)(2) in concludes that § 1024.39(e)(2) will help additional instances, such as at the further the Bureau’s goal to encourage Additionally, a few commenters beginning of forbearance programs or borrowers to begin application for loss suggested that the information required during the live contact established mitigation assistance before the end of under proposed § 1024.39(e)(2) should immediately after the effective date of the forbearance program. be provided in more than one live this final rule. Most borrowers have As discussed above, the Bureau is contact. A few consumer advocate already started the relevant forbearance revising § 1024.39(e)(2) to require that at commenters suggested the information programs, and for those yet to begin least 10 and no more than 45 days be provided during all live contacts forbearance programs, servicers are before the scheduled end date of their established during the forbearance already required under the servicing current forbearance program, the program. One consumer advocate rules to provide a written notice to servicer must provide the borrower a list suggested the information be provided borrowers promptly after offering a and brief description of each of the during the live contact established at the borrower a short-term payment types of forbearance extension, start of the forbearance program, in forbearance program based on the repayment options, and other loss addition to the last live contact. One evaluation of an incomplete mitigation options made available to the State Attorney General commenter application.99 Additionally, the Bureau borrower at the time of the live contact, suggested the information be provided is concerned that requiring servicers to the actions the borrower must take to be during the live contact that is provide the additional information at evaluated for such loss mitigation established immediately after final rule the effective date for all accounts would options, and at least one way that the issuance, as well as the last live contact. overwhelm servicer capacity at a critical borrower can find contact information The Bureau is persuaded by the moment. for homeownership counseling services, comments that it should revise Thus, to balance the timing such as referencing the borrower’s § 1024.39(e)(2) to clarify when servicers considerations, the Bureau is revising periodic statement. The loss mitigation must provide the information required § 1024.39(e)(2) to clarify that servicers options listed under § 1024.39(e)(2) are by § 1024.39(e)(2). First, the Bureau must provide the additional information not limited to a specific type of loss agrees with commenters that the timing during the live contact that occurs at mitigation, as servicers must provide should be tied to the scheduled end of least 10 days and no more than 45 days borrowers with information about all the forbearance program, rather than the before the scheduled end of the available loss mitigation types, such as actual end date. As discussed above, the forbearance program. The Bureau forbearance extensions, repayment Bureau recognizes that some borrowers recognizes that this approach may mean plans, loan modifications, short-sales, may extend their forbearance programs that certain borrowers exiting and others. and others may voluntarily exit before forbearance near the effective date of As revised, § 1024.39(e)(2) requires the scheduled end date. The Bureau this final rule could be missed. As a this additional information be provided concludes that providing this result, the Bureau is amending this in the live contact established with the information based on the scheduled end provision to require servicers to provide borrower at least 10 days and no more date is beneficial for borrowers that the additional information during the than 45 days before the scheduled end extend their forbearance program, so of the forbearance program. The Bureau that they will receive this information 98 86 FR 18840, 18849–18850 (Apr. 9, 2021). is also revising § 1024.39(e)(2) to 99 each time they extend their forbearance 12 CFR 1024.41(c)(2)(iii) requires servicers address a servicer’s obligations with promptly after offering a short-term payment respect to forbearance programs program. forbearance program to provide borrowers with a written notice stating the specific payment terms scheduled to end within 10 days after Second, the Bureau declines to and duration of the program, that the servicer the effective date of this final rule. If the require servicers to provide the offered the program based on an evaluation of an scheduled end date of the forbearance information required by § 1024.39(e)(2) incomplete application, that other loss mitigation program occurs between August 31, to borrowers earlier in the forbearance options may be available, and the borrower has the option to submit a complete loss mitigation 2021 and September 10, 2021, final program or more than one time. As application to receive an evaluation for all loss § 1024.39(e)(2) requires the servicer to discussed in the proposal, the Bureau mitigation options available to the borrower provide the additional information believes providing this information regardless of whether the borrower accepts the during the first live contact made towards the end of forbearance program or plan. This requirement applies with respect to every such short-term payment pursuant to § 1024.39(a) after August 31, programs better aligns with current forbearance program offered, including each 2021. borrower behavior patterns, given successive program renewal or extension. See, e.g., Finally, the Bureau notes that economic uncertainty and the impact 78 FR 60381, 60401 (Oct. 1, 2013) (noting that the § 1024.39(e)(2), as revised, works with foreclosure moratoria may have their rule does not preclude a servicer from offering multiple successive short-term payment forbearance the new reasonable diligence obligations sense of urgency, potentially increasing programs). in comment 41(b)(1)–4.iv to ensure

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borrowers that submit incomplete deadline. Specifically, the consumer changes. The Bureau did not receive any applications receive notification of loss advocate commenter indicated they comments suggesting that the proposed mitigation options that would be believe the appropriate timing might provision should apply to all borrowers available after their COVID–19-related depend on whether and how the Bureau exiting short-term payment forbearance forbearance program ends. finalizes proposed § 1024.41(f). Under programs. The Bureau is finalizing the one scenario, they believed that 30 days applicability of comment 41(b)(1)–4.iv Section 1024.41 Loss Mitigation was appropriate, but under another as proposed. Procedures scenario they urged the Bureau to move A few commenters, including 41(b) Receipt of a Loss Mitigation the deadline to resume reasonable industry commenters encouraged the Application diligence to at least 60 days before the Bureau to exclude servicers from the requirement to make the proposed 41(b)(1) Complete Loss Mitigation end of the forbearance program. The forbearance reasonable diligence contact Application industry commenter encouraged the Bureau to adopt a later deadline, which if the borrower voluntarily ends Comment 41(b)(1)–4.iii discusses a would allow servicers to complete the forbearance. To clarify that the servicer’s reasonable diligence forbearance reasonable diligence contact reasonable diligence requirements obligations when a servicer offers a within 30 days before the end of the included in new comment 41(b)(1)–4.iv borrower a short-term payment forbearance. This commenter expressed mirror the scope of existing comment forbearance program or a short-term the belief that borrowers would be more 41(b)(1)–4.iii and only apply if the repayment plan based on an evaluation responsive if servicers could complete borrower remains delinquent, the of an incomplete loss mitigation the forbearance reasonable diligence Bureau is adding the phrase ‘‘if the application and provides the borrower contact right before the borrower’s borrower remains delinquent’’ to the written notice pursuant to forbearance ends. proposed comment 41(b)(1)–4.iv. This § 1024.41(c)(2)(iii). It also provides that The Bureau declines to revise the language is in comment 41(b)(1)–4.iii reasonable diligence means servicers proposed 30-day deadline. The 30-day but was inadvertently omitted from must contact the borrower before the deadline aligns with GSE Quality Right proposed comment 41(b)(1)–4.iv. The short-term payment forbearance Party Contact (QRPC) guidelines. Bureau declines to exclude servicers program ends (‘‘the forbearance Servicers are required to establish QRPC from the forbearance reasonable reasonable diligence contact’’), but it at least 30 days before the end of the diligence contact if the borrower does not specify when servicers must initial 12-month cumulative COVID–19 voluntarily ends forbearance early. If a make the contact. Consequently, the forbearance period, or at least 30 days borrower voluntarily ends forbearance Bureau proposed adding a new prior to the end of any subsequent early and remains delinquent, the comment, comment 41(b)(1)–4.iv, to forbearance plan term extension.100 The servicer must still make the forbearance specify that, if the borrower is in a Bureau aimed to make this requirement reasonable diligence contact required by short-term payment forbearance complementary to existing GSE comment 41(b)(1)–4.iv. If a borrower program made available to borrowers guidelines and to avoid exacerbating voluntarily ends forbearance early and experiencing a COVID–19-related confusion among servicers attempting to is no longer delinquent, servicers need hardship, servicers must make the comply with multiple compliance not make the forbearance reasonable forbearance reasonable diligence contact obligations. diligence contact. at least 30-days prior to the end of the The Bureau also received comments Some industry commenters also urged short-term forbearance program. from industry commenters on whether the Bureau to eliminate the proposed Additionally, the proposal specified the Bureau should extend the requirement to exercise reasonable that, if the borrower requests further reasonable diligence protections of diligence to complete an application, assistance, the servicer must also proposed comment 41(b)(1)–4.iv to all stating that § 1024.41(c)(2)(v), adopted exercise reasonable diligence to borrowers exiting short-term payment in the June 2020 IFR,101 and proposed complete the loss mitigation application forbearance programs during a specified § 1024.41(c)(2)(vi) permit servicers to prior to the end of forbearance period. time period or retain the proposed offer certain loss mitigation options The Bureau solicited comment on the limitation that the comment applies based on the evaluation of an proposed 30-day deadline for only to borrowers in short-term payment incomplete application. Commenters completing the forbearance reasonable forbearance programs made available to indicated that they believe borrowers diligence contact at the end of the borrowers experiencing a COVID–19- will be confused if servicers contact forbearance and whether a different related hardship. These commenters borrowers to evaluate them for a deadline was appropriate. The Bureau encouraged the Bureau to retain the payment deferral or loan modification also solicited comment on whether to proposed limitation. Commenters noted based on an incomplete application, but extend these requirements to all that the proposed comment’s then also contact them to inquire if they borrowers exiting short-term payment requirements mirror current practices want to complete a loss mitigation forbearance programs during a specified and would not create an extra burden application. The Bureau holds that time period, instead of limiting it to for servicers to implement. The while § 1024.41(c)(2)(v) and new borrowers in a short-term payment commenters cautioned against imposing § 1024.41(c)(2)(vi) empower servicers to forbearance program made available to any additional reasonable diligence offer deferral or loan modifications borrowers experiencing a COVID–19- requirements, citing that many servicers based on the evaluation of an related hardship. are fatigued from constant policy incomplete application, a servicer is Overall, commenters generally still required to exercise reasonable supported the proposal. A few 100 The Fed. Nat’l Mortg. Ass’n, Lender Letter (LL– diligence to complete an application commenters, including consumer 2021–02), at 6 (Feb. 25, 2021), https:// unless the borrower accepts the deferral advocate commenters and an industry singlefamily.fanniemae.com/media/24891/display; or loan modification offer. There are commenter, suggested a different The Fed. Home Loan Mortg. Corp., COVID–19 benefits to borrowers of being fully Servicing: Guidance for Helping Impacted deadline from the proposed 30-day Borrowers, at 5 (May 1, 2021), https:// evaluated for all available loss deadline would be appropriate. The sf.freddiemac.com/content/_assets/resources/pdf/ commenters suggested an earlier or later ebooks/helpstartshere-servicing-ebook.pdf. 101 85 FR 39055 (June 30, 2020).

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mitigation options based on complete borrower wishes to complete the loss proposed to define the term ‘‘COVID– application, and certain protections mitigation application and proceed with 19-related hardship’’ for purposes of under the rules apply only once the a full loss mitigation evaluation. If the subpart C, including § 1024.41(c)(2)(v), borrower completes an application. In borrower requests further assistance, the as ‘‘a financial hardship due, directly or addition, if a servicer believes that a servicer must exercise reasonable indirectly, to the COVID–19 emergency borrower may be confused by the diligence to complete the application as defined in the Coronavirus Economic reasonable diligence outreach, a servicer before the end of the forbearance period. Stabilization Act, section 4022(a)(1) (15 may provide additional information to U.S.C. 9056(a)(1)).’’ Thus, the Bureau the borrower to help explain the 41(c) Evaluation of Loss Mitigation proposed a conforming amendment to application process. The Bureau Applications § 1024.41(c)(2)(v) to utilize the proposed encourages this type of transparency in 41(c)(2)(i) In General new term. As further explained in the section- communications. However, once the Section 1024.41(c)(2)(i) states that, in by-section analysis of § 1024.31, the borrower accepts a deferral offer or loan general, servicers shall not evade the Bureau is revising the proposed modification offer based on that requirement to evaluate a complete loss definition of the term ‘‘COVID–19- evaluation of an incomplete application, mitigation application for all loss related hardship’’ for purposes of the servicer is not required to continue mitigation options available to the to exercise reasonable diligence to subpart C to refer in the final rule to the borrower by making an offer based upon complete any loss mitigation national emergency proclamation an incomplete application. For ease of application that the borrower submitted related to COVID–19, rather than to the reference, this section-by-section before the servicer’s offer of the COVID–19 emergency as defined in analysis generally refers to this accepted loss mitigation option. section 4022 of the CARES Act. The A few commenters requested that the provision as the ‘‘anti-evasion Bureau did not receive any comments Bureau clarify the method of requirement.’’ Currently, the provision on the conforming amendment in compliance for the outreach identifies three general exceptions to § 1024.41(c)(2)(v), and is finalizing it as requirements in comment 41(b)(1)–4. this anti-evasion requirement, proposed. The Bureau does not intend Specifically, an industry commenter § 1024.41(c)(2)(ii), (iii), and (v). As for this conforming amendment to requested that the Bureau clarify further described in the section-by- substantively change § 1024.41(c)(2)(v). whether the outreach requirements section analysis of § 1024.41(c)(2)(vi) Escrow Issues. As the Bureau stated in could be satisfied either orally or in below, the Bureau proposed to add a the June 2020 IFR, writing. A consumer advocate temporary exception to this anti-evasion § 1024.41(c)(2)(v)(A)(1) allows for some commenter requested that the Bureau requirement in new § 1024.41(c)(2)(vi) flexibility among loss mitigation options clarify that the outreach must be sent in for certain loan modification options that may qualify for the exception. For writing. The Bureau clarifies that the made available to borrowers example, although the loss mitigation forbearance reasonable diligence contact experiencing COVID–19-related options must defer all forborne or required by comment 41(b)(1)–4.iv, like hardships. The Bureau also proposed to delinquent principal and interest the forbearance reasonable diligence amend 1024.41(c)(2)(i) to reference the payments under § 1024.41(c)(2)(v)(A)(1), contact required by comment 41(b)(1)– new proposed exception in the rule does not specify how servicers 4.iii can be oral or in writing. Servicers § 1024.41(c)(2)(vi). The Bureau did not must treat any forborne or delinquent will likely find it beneficial to receive any comments on the addition escrow amounts. A loss mitigation communicate their decisions in writing of this reference and, because the option would qualify for the exception in some cases to prevent ambiguity and Bureau is adopting § 1024.41(c)(2)(vi), if it defers repayment of escrow memorialize decisions. However, there the Bureau is finalizing the amendment amounts, in addition to principal and may be circumstances where oral to § 1024.41(c)(2)(i) as proposed. interest payments, as long as it notification is advantageous due to time 41(c)(2)(v) Certain COVID–19-Related otherwise satisfies § 1024.41(c)(2)(v)(A). The Bureau has received questions constraints, and the Bureau has Loss Mitigation Options concluded that the best approach is to about whether servicers should issue a allow the servicer to choose the Definition of a COVID–19-related short-year annual escrow account appropriate mode of communication hardship. Section 1024.41(c)(2)(v) statement under § 1024.17(i)(4) prior to based on the particular facts and currently allows servicers to offer a offering a loss mitigation option under circumstances of each case. borrower certain loss mitigation options § 1024.41(c)(2)(v)(A). Regulation X does For the reasons discussed above, the made available to borrowers not require a short year statement prior Bureau is finalizing comment 41(b)(1)– experiencing a COVID–19-related to offering any loss mitigation option, 4.iv as proposed with a minor edit to hardship based upon the evaluation of but the Bureau strongly encourages clarify the provision applies only to an incomplete application, provided servicers to conduct an escrow analysis delinquent borrowers. As finalized, that certain criteria are met. The Bureau and issue a short-year statement or comment 41(b)(1)–4.iv explains that if added this provision to the mortgage annual statement, depending on the the borrower is in a short-term payment servicing rules in its June 2020 IFR. applicable timing. Doing so may help forbearance program made available to Section 1024.41(c)(2)(v)(A)(1) refers to a avoid unexpected potential escrow- borrowers experiencing a COVID–19- COVID–19-related hardship as a related payment increases after the related hardship, including a payment financial hardship due, directly or borrower has already agreed to a loss forbearance program made pursuant to indirectly, to the COVID–19 emergency. mitigation option, and can inform the Coronavirus Economic Stability Act, Section 1024.41(c)(2)(v)(A)(1) further servicers of the information needed to section 4022 (15 U.S.C. 9056), that was states that the term COVID–19 provide a history of the escrow account, offered to the borrower based on emergency has the same meaning as pursuant to § 1024.17(i)(2), after the evaluation of an incomplete application, under the Coronavirus Economic loan becomes current. a servicer must contact the borrower no Stabilization Act, section 4022(a)(1)(15 The Bureau has also received later than 30 days before the end of the U.S.C. 9056(a)(1)). questions about how servicers may treat forbearance period if the borrower As discussed in the section-by-section funds that they have advanced or plan remains delinquent and determine if the analysis of § 1024.31, the Bureau to advance to cover escrow shortages in

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this context. Assume a servicer performs incomplete application. The Bureau required by § 1024.41(b)(1) if the an escrow analysis before offering a loss proposed to add a new temporary borrower fails to perform under a trial mitigation option to the borrower under exception to this anti-evasion loan modification plan offered pursuant § 1024.41(c)(2)(v)(A), and the analysis requirement to permit servicers to offer to the proposed new exception or reveals a shortage. The Bureau has certain loan modification options made requests further assistance. received questions about whether the available to borrowers with COVID–19- The Bureau solicited comment on the servicer is permitted under Regulation X related hardships based on the proposed new exception. For the to advance funds to cover the shortage evaluation of an incomplete application. reasons discussed below, the Bureau is (for example, if a borrower is in a The exception is temporary because the finalizing proposed § 1024.41(c)(2)(vi) forbearance) and seek repayment of Bureau in this final rule is defining the largely as proposed, with some revisions those advanced funds as part of the non- term ‘‘COVID–19-related hardship’’ for to address certain comments received, interest bearing deferred balance that is purposes of subpart C to refer to a including limiting the requirement to due when the mortgage loan is financial hardship due, directly or waive certain fees, as discussed in more refinanced, the mortgaged property is indirectly, to the national emergency for detail below. sold, the term of the mortgage loan ends, the COVID–19 pandemic declared in Comments Received or, for a mortgage loan insured by the Proclamation 9994 on March 13, 2020 FHA, the mortgage insurance (beginning on March 1, 2020) and General comments about the terminates. Section 1024.17 has specific continued on February 24, 2021. At proposed exception. The vast majority rules and procedures for the some point after the national emergency of commenters, including industry, administration of escrow accounts ends, servicers will no longer make consumer advocate commenters, and associated with federally related available loan modification options to individuals, expressed general support mortgage loans, but it does not address borrowers with COVID–19-related for proposed § 1024.41(c)(2)(vi). Most the specific situation described in the hardships for purposes of subpart C. commenters who expressed support for question. Regulation X does not prohibit The proposal would have established proposed § 1024.41(c)(2)(vi) also urged a servicer from seeking repayment of eligibility criteria for the new exception the Bureau to make certain revisions to funds advanced to cover the shortage as in proposed § 1024.41(c)(2)(vi)(A). the provision. In general, industry described above. Section 1024.17 is Specifically, a loan modification eligible commenters requested that the Bureau intended to ensure that servicers do not for the proposed new exception would provide additional flexibility, require borrowers to deposit excessive have to limit a potential term extension clarification, or both surrounding what amounts in an escrow account to 480 months, not increase the required loan modification options can qualify (generally limiting monthly payments to monthly principal and interest payment, for the new anti-evasion exception and 1/12th of the amount of the total not charge a fee associated with the the regulatory relief provided to anticipated disbursements, plus a option, and waive certain other fees and servicers after they offer these loan cushion not to exceed 1/6th of those charges. For loan modifications to modifications. Consumer advocate total anticipated disbursements, during qualify under the proposed new commenters generally requested that the the upcoming year). Loss mitigation exception, they would not be able to final rule require that servicers provide programs such as those permitted under charge interest on amounts that the various additional disclosures and § 1024.41(c)(2)(v)(A) give the borrower borrower may delay paying until the protections to borrowers who are more time to repay forborne or mortgage loan is refinanced, the evaluated for a loan modification option delinquent amounts and does not mortgaged property is sold, or the loan based on the evaluation of an specify how servicers must treat any modification matures. However, loan incomplete application. The Bureau’s forborne or delinquent escrow amounts. modifications that charge interest on responses to these comments are Regulation X does not prohibit the amounts that are capitalized into a new discussed further in this section and the borrower and servicer from agreeing to modified term would qualify for the section-by-section analyses below. a loss mitigation option that allows for proposed new exception, as long as they A few individuals and a few industry the repayment of funds that a servicer otherwise satisfy all of the criteria in commenters expressed opposition to the has advanced or will advance to cover § 1024.41(c)(2)(vi)(A). To qualify for the proposed new exception overall for a an escrow shortage.102 proposed new exception, a loan variety of reasons and suggested modification also either (1) would have removing it entirely or replacing it with 41(c)(2)(vi) Certain COVID–19-Related to cause any preexisting delinquency to various alternatives. The Bureau Loan Modification Options end upon the borrower’s acceptance of concludes that it is appropriate to add The Bureau’s Proposal the offer or (2) be designed to end any a new exception to the servicing rule’s anti-evasion requirement for certain As discussed in more detail in the preexisting delinquency on the mortgage loan upon the borrower loan modification options, like the section-by-section analysis of satisfying the servicer’s requirements for GSEs’ flex modification programs, § 1024.41(c)(2)(i), in general, servicers completing a trial loan modification FHA’s COVID–19 owner-occupant loan shall not evade the requirement to plan and accepting a permanent loan modification, and other comparable evaluate a complete loss mitigation modification. programs (‘‘streamlined loan application for all loss mitigation Once the borrower accepts an offer modifications’’).103 These programs will options available to the borrower by made pursuant to proposed making an offer based upon an § 1024.41(c)(2)(vi)(A), the Bureau 103 A loan modification that a servicer offers proposed to exclude servicers from the based upon the evaluation of an incomplete loss 102 Additionally, when a borrower is more than mitigation application can qualify for the exception 30 days delinquent, a servicer may recover a requirement to exercise reasonable in § 1024.41(c)(2)(vi) even if the servicer collects deficiency in the borrower’s escrow account diligence required by § 1024.41(b)(1) information, such as information to verify income, pursuant to the terms of the mortgage loan and to send the acknowledgement from a borrower. Section 1024.41(b)(1) defines a documents. Deficiencies exist when there is a notice required by § 1024.41(b)(1). complete loss mitigation application as an negative balance in the borrower’s escrow account, application in connection with which a servicer has which can occur, for example, when a servicer However, the proposal would have received all the information that the servicer advances funds for expenses such as taxes and required the servicer to immediately requires from a borrower in evaluating applications insurance. See § 1024.17(f)(4)(iii). resume reasonable diligence efforts Continued

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help ensure that servicers have should be aware of all loss mitigation assistance, under § 1024.41(c)(2)(vi)(B) sufficient resources to efficiently and options available to them. the servicer must immediately resume accurately respond to loss mitigation One of the consumer advocate reasonable diligence efforts to collect a assistance requests from the unusually commenters urged the Bureau to require complete loss mitigation application as large number of borrowers who will be that a servicer include streamlined required under § 1024.41(b)(1). Also, as seeking assistance from them in the options during a review of a complete further discussed below, in this final coming months as Federal foreclosure loss mitigation option that may take rule the Bureau is amending moratoria and many forbearance place after a borrower is offered a loan § 1024.41(c)(2)(vi)(B) to adopt as final a programs end. And borrowers dealing modification under the exception, and requirement that if a borrower fails to with the social and economic effects of expressed skepticism that servicers perform under a trial loan modification the COVID–19 emergency may be less would complete another loan plan offered pursuant to likely than they would be under normal modification quickly after implementing § 1024.41(c)(2)(vi)(A) or requests further circumstances to take the steps a loan modification offered under the assistance, the servicer must send the necessary to complete a loss mitigation exception. The same commenter borrower the notice required by application to receive a full evaluation. expressed concern that defaults or trial § 1024.41(b)(2)(i)(B), with regard to the This could prolong their delinquencies loan modification plan failures for loan most recent loss mitigation application and put them at risk for foreclosure modification options offered under the the borrower submitted prior to the referral. Moreover, by allowing servicers exception would render a borrower servicer’s offer of the loan modification to assist borrowers eligible for ineligible to receive another streamlined under the exception, unless the servicer streamlined loan modifications more loan modification for a period of time. has already sent that notice to the The Bureau acknowledges that efficiently, servicers will have more borrower. borrowers accepting a loan modification resources to provide other loss Finally, as discussed in the section- offer under the new exception will not by-section analysis of § 1024.41(f)(3), mitigation assistance to borrowers who receive protections under § 1024.41 that the Bureau is finalizing requirements for are ineligible for or do not want are critical in other circumstances. special COVID–19 loss mitigation streamlined loan modifications. However, the Bureau concludes that the procedural safeguards that will extend Additional disclosures and exception set forth in final through December 31, 2021. These protections. Some consumer advocate § 1024.41(c)(2)(vi)(A) will be unlikely to requirements provide generally that a commenters urged the Bureau to affect this benefit in most cases, given servicer must ensure that certain provide additional disclosures and the narrow scope and particular procedural safeguards are met to give protections in connection with the circumstances of the exception. If a borrowers a meaningful opportunity to evaluation of a streamlined loan borrower is interested in another form of modification option under proposed loss mitigation after accepting an offer pursue loss mitigation options before a § 1024.41(c)(2)(vi). A few of these made pursuant to § 1024.41(c)(2)(vi)(A), servicer initiates foreclosure. These commenters urged the Bureau to they would still have the right under special COVID–19 loss mitigation include additional requirements for § 1024.41 to submit a complete loss procedural safeguards will temporarily eligible loan modifications, including, mitigation application and receive an provide borrowers with more time to for example, requiring certain written evaluation for all available options. This submit a complete loss mitigation notices, denial notices, the right to would be the case even if, for example, application, should they choose to do appeal a decision, dual tracking a borrower accepted a loan modification so, before they would be at risk of protections, and simultaneous trial plan offered pursuant to referral to foreclosure. evaluation for all available streamlined § 1024.41(c)(2)(vi)(A) and then failed to With respect to some commenters’ loan modification options. One of these perform on that plan. concerns that consumers should be commenters also urged the Bureau to Further, to be eligible for the made aware of the loss mitigation prohibit a servicer from requiring a exception under § 1024.41(c)(2)(vi)(A), a options available to them, many borrower to give up the option of loan modification must bring the loan borrowers who would receive an offer obtaining a streamlined loan current or be designed to end any pursuant to § 1024.41(c)(2)(vi)(A) are modification if the borrower completes preexisting delinquency on the likely to have received early a loss mitigation application. This mortgage loan upon the borrower intervention efforts by their servicers, commenter expressed concern that satisfying the servicer’s requirements for including the written notice required borrowers would be negatively affected completing a trial loan modification under Regulation X stating, among other by not knowing the options for which plan and accepting a permanent loan things, a brief description of examples they had been reviewed if, for example, modification. In most cases, a borrower of loss mitigation options that may be they had been denied for an option on must be more than 120 days delinquent available, as well as application the basis of inaccurate information. A before a servicer may make the first instructions or a statement informing group of State Attorneys General also notice or filing required under the borrower about how to obtain more commented generally that a borrower applicable law to initiate foreclosure information about loss mitigation proceedings. Thus, if a borrower wishes options from the servicer. In general, borrowers who previously entered into for the loss mitigation options available to the to pursue another loss mitigation option borrower. If a servicer collects a complete loss after accepting a permanent loan a forbearance program will also have mitigation application, the servicer is required to modification offer, the borrower will received the notice required under comply with all of the provisions of § 1024.41 still have a considerable amount of time § 1024.41(b)(2) and written notification relating to the receipt of complete loss mitigation of the terms and conditions of the applications, such as a written notice of to complete a loss mitigation determination, the right to an appeal, and dual application before they would be at risk forbearance program stating, among tracking protections. If a servicer collects for foreclosure. other things, that other loss mitigation information that does not constitute a complete loss Additionally, if a borrower fails to options may be available, and that the mitigation application, the servicer is prohibited perform under a trial loan modification borrower still has the option to submit from making an offer for a loss mitigation option by § 1024.41(c)(2)(ii), unless one of the exceptions plan offered pursuant to a complete application to receive an listed in § 1024.41(c)(2)(ii) through (vi) applies. § 1024.41(c)(2)(vi)(A) or requests further evaluation for all available options.

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As noted above, a commenter commenter urged the Bureau to apply and interest payment would exclude expressed concern that a borrower the anti-evasion exception to from the exception some loan default on a loan modification or failure bankruptcy plans that are amended to modifications offered under FHA’s to perform under a trial loan cure COVID–19 delinquencies. COVID–19 owner-occupant loan modification plan may render a The Bureau declines to generally modification program, which permits borrower ineligible for certain broaden the exception’s eligibility payment increases in certain additional loan modifications for a requirements to cover more loss circumstances. The industry period of time. The Bureau notes that mitigation solutions with criteria commenters noted that some investors the flex modification guidelines cited by different from those outlined in do not offer loan modifications with the commenter in discussing this § 1024.41(c)(2)(vi)(1)–(5), as requested long-term fixed rates, and urged the concern are Fannie Mae’s general flex by some commenters, for reasons Bureau to clarify whether the criterion modification guidelines. Fannie Mae’s discussed in the section-by-section as proposed would allow adjustable rate reduced eligibility guidelines apply to analyses of those sections below. loan modifications to qualify for the COVID–19-related hardships, and the new anti-evasion exception. reduced eligibility guidelines do not Final Rule A different industry commenter stated contain the limitation cited by the For the reasons discussed herein, the that certain State laws prohibit balloon commenter related to previous failure to Bureau is adopting § 1024.41(c)(2)(vi) payments, which could make it difficult perform on a trial loan modification or largely as proposed, with a few changes for servicers to offer loan modifications previous default on a flex described below. that do not extend the term beyond 480 modification.104 The Bureau therefore months or cause the monthly required 41(c)(2)(vi)(A) understands that a borrower principal and interest to increase, experiencing a COVID–19-related 41(c)(2)(vi)(A)(1) because the servicer could not defer hardship who previously failed to The Bureau’s Proposal remaining delinquent amounts to the perform on a trial loan modification or end of the loan. Under proposed defaulted on a permanent loan Final Rule modification would not be precluded § 1024.41(c)(2)(vi)(A)(1), the first criteria from obtaining another flex would have been that the loan For the reasons discussed below, the modification for those reasons. modification must extend the term of Bureau is adopting For the reasons discussed above, the the loan by no more than 480 months § 1024.41(c)(2)(vi)(A)(1) as proposed, Bureau declines to generally extend the from the date the loan modification is with minor revisions to clarify the requirements in § 1024.41 relating to the effective and not cause the borrower’s criterion that, for a loan modification to receipt of complete loss mitigation monthly required principal and interest qualify for the exception, the monthly applications, such as a written notice of payment to increase. As discussed more required principal and interest payment determination, the right to an appeal, fully below, the Bureau is adopting the amount must not increase for the entire and dual tracking protections, to criteria in § 1024.41(c)(2)(vi)(A)(1) as modified term. borrowers who are evaluated for or proposed, with minor clarifying changes The Bureau believes that it will be offered a streamlined loan modification as discussed below. advantageous to borrowers and servicers alike to facilitate the timely transition of on the basis of an incomplete Comments Received application. The Bureau also declines to eligible borrowers into certain impose requirements on servicers One consumer advocate commenter streamlined loan modifications that do regarding which and how many and one individual commenter not cause additional financial hardship, streamlined loan modifications it must expressed specific support for the 480- such as flex modifications offered by the evaluate a borrower for on the basis of month term limitation criterion. Some GSEs and COVID–19 owner-occupant an incomplete application or on the individual commenters expressed loan modifications offered by FHA that basis of a complete loss mitigation opposition to the 480-month term meet the eligibility criteria in application that the borrower may elect limitation criterion, stating generally § 1024.41(c)(2)(vi)(A)(1)–(5).105 The to submit after the servicer has that a 480-month term was too long. Bureau has concluded that the criteria evaluated an incomplete loss mitigation One consumer advocate commenter discussed in this section-by-section application under § 1024.41(c)(2)(vi). expressed support for the payment analysis relating to the term and Expanded eligibility criteria. Some increase limitation. One consumer payment features of loan modifications industry commenters asked that the advocate commenter and a few industry eligible for the exception are Bureau expand the eligibility criteria in commenters urged the Bureau to appropriate to achieve this goal. § 1024.41(c)(2)(vi)(A) to cover a much provide additional flexibility for a The Bureau notes that broader variety of loss mitigation streamlined loan modification to qualify § 1024.41(c)(2)(vi) itself will not prevent options available to borrowers with for the new exception even if it resulted borrowers from qualifying for certain COVID–19-related hardships, including, in increases to the monthly required loss mitigation options. The criteria that among other things, repayment plans principal and interest payment amount. the Bureau is adopting in final and loan modifications that would The consumer advocate commenter § 1024.41(c)(2)(vi)(A) do not constitute increase the monthly required principal advocated for a percentage cap, such as general requirements or prohibitions and interest payment. Another industry 15 percent or 20 percent, on any applying to all loss mitigation options. potential increase, noting that Rather, they are a narrowly tailored 104 See Fed. Nat’l Mortg. Ass’n, Servicing Guide: capitalizing a large amount of forborne exception to the anti-evasion D2–3.2–07: Fannie Mae Flex Modification (Sept. 9, payments may make it hard to achieve requirement to allow servicers to offer 2020), https://servicing-guide.fanniemae.com/THE- certain loan modifications to borrowers SERVICING-GUIDE/Part-D-Providing-Solutions-to- payment reduction. The Bureau also a-Borrower/Subpart-D2-Assisting-a-Borrower-Who- received feedback during its interagency is-Facing-Default-or/Chapter-D2-3-Fannie-Mae-s- consultation process indicating that 105 U.S. Dep’t of Hous. and Urban Dev., Home-Retention-and-Liquidation/Section-D2-3-2- limiting the proposed new exception to Mortgagee Letter 2021–05 at 10 (Feb. 16, 2021), Home-Retention-Workout-Options/D2-3-2-07- https://www.hud.gov/sites/dfiles/OCHCO/ Fannie-Mae-Flex-Modification/1042575201/D2-3-2- loan modifications that do not increase documents/2021-05hsgml.pdf (HUD Mortgagee 07-Fannie-Mae-Flex-Modification-09-09-2020.htm. a borrower’s monthly required principal Letter).

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on the basis of an incomplete that the Bureau did not include FHA mortgage insurance terminates.106 If this application. Section 1024.41(c)(2)(vi) mortgage insurance termination as a type of loan modification option meets does not prevent a borrower from point after which amounts that a all of the criteria listed in submitting a complete loss mitigation borrower may delay paying must not § 1024.41(c)(2)(vi)(A), servicers can offer application, and it does not relieve accrue interest to meet the proposed it under that anti-evasion exception on servicers of their obligations under criterion, even though this language is the basis of an incomplete application. § 1024.41 to evaluate a borrower for all included in the exception for certain The Bureau is therefore adopting available loss mitigation options upon deferrals described in § 1024.41(c)(2)(v). § 1024.41(c)(2)(vi)(A)(2) with the the receipt of a complete loss mitigation An industry commenter and a consumer addition of language concerning FHA application. Borrowers can therefore advocate commenter asked that the mortgage insurance termination, to still be evaluated for all loss mitigation Bureau clarify whether a loan clarify that a loan modification option options available to them, including modification that capitalizes some can qualify for § 1024.41(c)(2)(vi)’s options that increase the term of the arrearages, such as interest arrearages, exception if, in addition to meeting loan beyond 480 months from the escrow advances, and escrow shortages, § 1024.41(c)(2)(vi)(A)’s other eligibility effective date of the loan modification into the principal balance of a loan requirements, amounts the borrower and options that entail an increase to modification would satisfy the criterion may delay paying until FHA mortgage the required monthly principal and in proposed § 1024.41(c)(2)(vi)(A)(2). insurance terminates do not accrue interest payment amount, by submitting Because the GSEs also specify that, for interest. a complete loss mitigation application. flex modifications, amounts that the In response to commenters’ request In response to some commenters’ borrower may delay paying until the for clarification regarding capitalization of amounts into a new modified loan requests for clarification regarding mortgage loan is transferred or the term, the Bureau notes that loan whether a loan modification with an unpaid principal balance (UPB) is paid modifications that charge interest on adjustable rate can qualify for the off must not accrue interest, the Bureau amounts that are capitalized into a new exception, the Bureau is adopting sought comment on whether to specify revised language in final modified term would qualify for the in a final rule that interest cannot be proposed new exception, as long as they § 1024.41(c)(2)(vi)(A)(1) clarifying that, charged on amounts that a borrower for the entire modified term, the otherwise satisfy all of the criteria in may delay paying until UPB pay off, § 1024.41(c)(2)(vi)(A). Capitalized monthly required principal and interest transfer, or both. The Bureau did not payment cannot increase beyond the amounts are amounts that the borrower receive any comments regarding the pays over the course of the new monthly principal and interest payment potential addition of this language. required prior to the loan modification. modified term, and a loan modification Other than this clarifying language, the Final Rule can meet the criteria in Bureau adopts § 1024.41(c)(2)(vi)(A)(1) § 1024.41(c)(2)(vi)(A) even if these as proposed. The Bureau is adopting the criterion amounts accrue interest. However, if the in § 1024.41(c)(2)(vi)(A)(2) largely as loan modification permits the borrower 41(c)(2)(vi)(A)(2) proposed with a revision to add to delay paying certain amounts until The Bureau’s Proposal language addressing FHA mortgage the mortgage loan is refinanced, the insurance termination. This eligibility mortgaged property is sold, the loan Under proposed criterion ensures that borrowers modification matures, or, for a mortgage § 1024.41(c)(2)(vi)(A)(2), to qualify for receiving one of the covered loan loan insured by FHA, the mortgage the anti-evasion requirement exception, modifications will have years to plan to insurance terminates, the criterion in any amounts that the borrower may address amounts that are not due until final § 1024.41(c)(2)(vi)(A)(2) are met delay paying until the mortgage loan is the mortgage loan is refinanced, the only if those amounts do not accrue refinanced, the mortgaged property is mortgaged property is sold, the loan interest. The Bureau is revising sold, or the loan modification matures modification matures, or, for a mortgage § 1024.41(c)(2)(vi)(A)(2) to make more must not accrue interest. As proposed, loan insured by FHA, the mortgage clear that this criterion regarding § 1024.41(c)(2)(vi)(A)(2) also would insurance terminates, and that those interest accrual only applies to loan have provided that, to qualify for the amounts will not increase due to modifications that involve payments anti-evasion exception in interest accrual. This may be that are delayed until the mortgage loan § 1024.41(c)(2)(vi), a servicer must not particularly important during the is refinanced, the mortgaged property is charge any fee in connection with the COVID–19 emergency, as many sold, the loan modification matures, or, loan modification option, and a servicer borrowers may be facing extended for a mortgage loan insured by FHA, the must waive all existing late charges, periods of economic uncertainty. mortgage insurance terminates. penalties, stop payment fees, or similar With respect to concerns regarding charges promptly upon the borrower’s With respect to the addition in this the potential capitalization of amounts acceptance of the option. For ease of final rule of language addressing FHA related to escrow, the Bureau has readability, the Bureau is moving the mortgage insurance termination, the received questions about whether the language regarding fees to new final Bureau notes that FHA’s COVID–19 servicer is permitted under Regulation X § 1024.41(c)(2)(vi)(A)(5). These criteria, owner-occupant loan modification does to advance funds to cover an escrow as well as a revision to them that the not involve allowing a borrower to delay shortage (for example, if a borrower is Bureau is adopting in this final rule, are paying certain amounts until FHA in a forbearance) and seek repayment of therefore discussed in additional detail mortgage insurance terminates. those advanced funds by capitalizing in the section-by-section analysis of However, the Bureau understands that them into a modified principal balance § 1024.41(c)(2)(vi)(A)(5). FHA also offers a COVID–19 as part of a loan modification. Section combination partial claim and loan 1024.17 has specific rules and Comments Received modification, which includes the procedures for the administration of The Bureau received a few comments potential extension of the loan’s term, as escrow accounts associated with on this proposed provision. One well as allowing a borrower to delay consumer advocate commenter noted paying certain amounts until FHA 106 Id.

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federally related mortgage loans, but it Bureau sought comment on whether anti-evasion exception if it is made does not address the specific situation that alternative would be easier for available to borrowers experiencing a described in the question. Regulation X servicers to implement. COVID–19-related hardship as well as does not prohibit a servicer from other borrowers. For example, the Comments Received seeking repayment of funds advanced to Bureau understands that the GSEs’ flex cover the shortage as described above. The Bureau received a few comments modifications are offered to a broader Section 1024.17 is intended to ensure on this aspect of the proposal. An population of borrowers than those that servicers do not require borrowers individual commenter expressed experiencing COVID–19-related deposit excessive amounts in an escrow concern that servicers may require hardships.108 Because these loan account (generally limiting monthly evidence of the onset of the hardship. A modifications are currently also payments to 1/12th of the amount of the consumer advocate commenter noted it available to borrowers experiencing total anticipated disbursements, plus a would have no general objection to an COVID–19-related hardships, they meet cushion not to exceed 1/6th of those approach limiting the exception to a the criterion that the Bureau is adopting total anticipated disbursements, during time period, indicating that that as final in § 1024.41(c)(2)(vi)(A)(3). the upcoming year). Loss mitigation approach might be easier for servicers to 41(c)(2)(vi)(A)(4) programs such as those permitted under administer. For the reasons discussed this final rule give the borrower more below, the Bureau is adopting The Bureau’s Proposal § 1024.41(c)(2)(vi)(A)(3) as proposed. time to repay forborne or delinquent Proposed § 1024.41(c)(2)(vi)(A)(4) amounts and do not specify how Final Rule would have required that either the servicers must treat any forborne or As noted in part II, the COVID–19 borrower’s acceptance of a loan delinquent escrow amounts. Regulation emergency presents a unique period of modification offer end any preexisting X does not prohibit the borrower and economic uncertainty, during which delinquency on the mortgage loan, or servicer from agreeing to a loss borrowers may be facing extended that a loan modification offered be mitigation option that allows for the periods of financial hardship and designed to end any preexisting repayment of funds that a servicer has servicers expect to face extraordinary delinquency on the mortgage loan upon advanced or will advance to cover an the borrower satisfying the servicer’s 107 operational challenges to assist large escrow shortage. numbers of delinquent borrowers. The requirements for completing a trial loan As described above, the Bureau is Bureau believes it would be difficult to modification plan and accepting a adopting § 1024.41(c)(2)(vi)(A)(2) as establish with certainty a date beyond permanent loan modification, for a loan proposed, with revisions to add which borrowers would no longer be modification to qualify for the proposed language concerning FHA mortgage experiencing COVID–19-related anti-evasion requirement exception in termination and to clarify that hardships and servicers may stop § 1024.41(c)(2)(vi). permitting a delay in the payment of making loan modification options Comments Received amounts until the mortgage loan is available to borrowers experiencing refinanced, the mortgaged property is such hardships. As further explained in The Bureau did not receive any sold, the loan modification matures, or, the section-by-section analysis of comments specifically addressing for a mortgage loan insured by FHA, the § 1024.31, the Bureau is revising the proposed § 1024.41(c)(2)(vi)(A)(4). For mortgage insurance terminates is not proposed definition of the term the reasons discussed below, the Bureau required for a loan modification to ‘‘COVID–19-related hardship’’ for is adopting this requirement as qualify for the anti-evasion exception in purposes of subpart C to refer in this proposed. § 1024.41(c)(2)(vi)(A). final rule to the national emergency Final Rule 41(c)(2)(vi)(A)(3) proclamation related to COVID–19. No end date for this national emergency has The Bureau believes that this The Bureau’s Proposal been announced. The Bureau therefore provision will help ensure that Proposed § 1024.41(c)(2)(vi)(A)(3) concludes that it is appropriate to limit borrowers who accept a loan would have required that, to qualify for eligibility for the exception in modification offered under the anti-evasion requirement exception, § 1024.41(c)(2)(vi) to loan modification § 1024.41(c)(2)(vi) have ample time to the loan modification offered pursuant options that are generally made complete an application and be to the exception in § 1024.41(c)(2)(vi)(A) available to borrowers experiencing a reviewed for all loss mitigation options must have been made available to COVID–19-related hardship. before foreclosure can be initiated. borrowers experiencing a COVID–19- Regarding a commenter’s concern that Servicers are generally prohibited from related hardship. As discussed in the servicers would require evidence of a making the first notice or filing until a section-by-section analysis of § 1024.31, COVID–19-related hardship, the Bureau mortgage loan obligation is more than 109 the Bureau proposed to define the term notes that the final rule does not require 120 days delinquent. If the ‘‘COVID–19-related hardship’’ as ‘‘a as a criterion for the anti-evasion borrower’s acceptance of a loan financial hardship due, directly or exception that the individual borrower offered the loan modification has 108 See Fed. Home Loan Mortg. Corp., Freddie indirectly, to the COVID–19 emergency Mac Flex Modification Reference Guide (Mar. 2021), as defined in the Coronavirus Economic experienced a COVID–19-related https://sf.freddiemac.com/content/_assets/ Stabilization Act, section 4022(a)(1) (15 hardship. Rather, the final rule limits resources/pdf/other/flex_mod_ref_guide.pdf; Fed. U.S.C. 9056(a)(1)).’’ The Bureau this exception to loan modifications Nat’l Mortg. Ass’n, Servicing Guide: D2–3.2–07: made available to borrowers Fannie Mae Flex Modification (Sept. 9, 2020), solicited comment on whether to https://servicing-guide.fanniemae.com/THE- instead condition eligibility on loan experiencing a COVID–19-related SERVICING-GUIDE/Part-D-Providing-Solutions-to- modifications offered during a specified hardship. The loan modification option a-Borrower/Subpart-D2-Assisting-a-Borrower-Who- time period, regardless of whether the offered need not be made available is-Facing-Default-or/Chapter-D2-3-Fannie-Mae-s- exclusively to borrowers experiencing a Home-Retention-and-Liquidation/Section-D2-3-2- option was made available to borrowers Home-Retention-Workout-Options/D2-3-2-07- with a COVID–19-related hardship. The COVID–19-related hardship to qualify Fannie-Mae-Flex-Modification/1042575201/D2-3-2- for the anti-evasion exception. A loan 07-Fannie-Mae-Flex-Modification-09-09-2020.htm. 107 Supra note 102. modification option can qualify for the 109 12 CFR 1024.41(f)(1).

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modification offer ends any preexisting modification under the aspect of the criterion excluding a delinquency on the mortgage loan, § 1024.41(c)(2)(vi)(A) is finalized.110 loan modification option from eligibility § 1024.41(f)(1)(i) would prohibit a These include live contact and written for the exception if a fee is charged in servicer from making a foreclosure notification obligations that, in part, connection with the loan modification referral until the loan becomes require servicers to inform borrowers of option. delinquent again, and until that the availability of additional loss Final Rule delinquency exceeds 120 days. mitigation options and how the Similarly, if the loan modification borrowers can apply. For these reasons, The Bureau is adopting offered is designed to end any the Bureau is adopting § 1024.41(c)(2)(vi)(A)(2) largely as preexisting delinquency on the § 1024.41(c)(2)(vi)(A)(4) as proposed. proposed, but re-numbered as mortgage loan upon the borrower § 1024.41(c)(2)(vi)(A)(5) and with a 41(c)(2)(vi)(A)(5) satisfying the servicer’s requirements for revision limiting the requirement to completing a trial loan modification The Bureau’s Proposal waive certain fees as discussed below. plan and accepting a permanent loan As noted above, proposed The final rule provides that, to qualify modification and the loan modification § 1024.41(c)(2)(vi)(A)(2) would have for the anti-evasion exception, a servicer is finalized, § 1024.41(f)(1)(i) would provided that, to qualify for the anti- must waive all existing late charges, prohibit a servicer from making a evasion requirement exception in penalties, stop payment fees, or similar foreclosure referral until the loan § 1024.41(c)(2)(vi)(A), a servicer must charges that were incurred on or after becomes delinquent again after the trial not charge any fee in connection with March 1, 2020, promptly upon the ends, and until that delinquency the loan modification option, and a borrower’s acceptance of the loan exceeds 120 days. This would provide servicer must waive all existing late modification. This revision responds to borrowers who become delinquent again charges, penalties, stop payment fees, or commenters’ concerns that the proposed time to complete an application and be similar charges promptly upon the fee waiver criterion would reviewed for all loss mitigation options borrower’s acceptance of the option. For inappropriately limit the availability of before foreclosure can be initiated. ease of readability, the Bureau is moving the exception. The Bureau, in adopting Additionally, the Bureau notes that this provision to new final the new anti-evasion exception, seeks to servicers must still comply with the § 1024.41(c)(2)(vi)(A)(5). The Bureau allow servicers to offer loan requirements of § 1024.41 for the first invited comment on whether the modifications to borrowers on the basis loss mitigation application submitted proposed fee waiver criterion was of an incomplete application if such a after acceptance of a loan modification appropriate and on whether it should be loan modification would avoid offered pursuant to further limited by, for example, imposing additional economic hardship § 1024.41(c)(2)(vi)(A), due to requiring that only fees incurred after a on borrowers who likely have already § 1024.41(i)’s requirement that a servicer certain date be waived for a loan experienced prolonged economic comply with § 1024.41 if a borrower modification option to qualify for the hardship due to the COVID–19 submits a loss mitigation application, anti-evasion requirement exception. The pandemic. unless the servicer has previously Bureau is revising this provision to add The Bureau believes that servicers complied with the requirements of a date limitation of March 1, 2020, on may be more likely to expeditiously § 1024.41 for a complete application the fee waiver criterion, as described offer the types of loan modifications that submitted by the borrower and the below. may qualify for the exception in borrower has been delinquent at all § 1024.41(c)(2)(vi) if they are not times since submitting that complete Comments Received required to waive fees and charges application. The anti-evasion exception The Bureau received several incurred before March 1, 2020. This described under new § 1024.41(c)(2)(vi) comments on this aspect of the approach also aligns with FHA servicer would only apply to offers based on the proposal. Some industry commenters guidelines, which only require servicers evaluation of an incomplete loss urged the Bureau to narrow the fee to waive fees incurred on or after March mitigation application. Regardless of waiver criterion to fees incurred during 1, 2020, for its COVID–19 owner- whether the loan modification is a COVID–19-related forbearance or on or occupant loan modification and its finalized and therefore resolves any after March 1, 2020. One consumer combination partial claim and loan preexisting delinquency, a servicer advocate commenter also asked the modification.111 The Bureau declines to would be required to comply with all of Bureau to limit the fee waiver criterion tie the fee waiver criterion to fees the provisions of § 1024.41 with respect to only fees incurred after March 1, incurred during forbearance, because to the first subsequent application 2020, noting that this criterion would some borrowers seeking a streamlined submitted by the borrower after the align with FHA rules regarding COVID– loan modification may not have been in borrower accepts an offer pursuant to 19 loan modification fee waivers. The forbearance for some or all of the period § 1024.41(c)(2)(vi)(A). This requirement Bureau also received feedback regarding between March 1, 2020 and the point at would apply, for example, for a FHA fee waivers during its interagency which the servicer offers an eligible loan borrower who accepted a trial loan consultation process encouraging the modification to the borrower. modification plan offered pursuant to Bureau to narrow the fee waiver The Bureau does not believe that it is § 1024.41(c)(2)(vi)(A) and subsequently criterion to fees incurred on or after necessary to revise the proposed fails to perform under that plan. March 1, 2020. Some industry regulatory language to address Additionally, servicers may be commenters asked that the Bureau commenters’ requests to clarify what is required to comply with early confirm whether pass-through costs, meant by similar charges for purposes of intervention obligations if a borrower’s such as inspection fees, are subject to this criterion. As finalized, mortgage loan account remains the waiver requirement. The Bureau did § 1024.41(c)(2)(vi)(A)(5) states that the delinquent after a loan modification is not receive any comments addressing servicer must waive all existing late offered and accepted under charges, penalties, stop payment fees, or § 1024.41(c)(2)(vi)(A) (such as when a 110 Small servicers, as defined in Regulation Z, 12 borrower is in a trial loan modification CFR 1026.41(e)(4), are not subject to these 111 HUD Mortgagee Letter, supra note 105, at 9 plan) or becomes delinquent after a loan requirements. 12 CFR 1024.30(b)(1). and 11.

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similar charges. Similar charges for may be necessary if the Bureau were to borrower’s acceptance of an offer made purposes of § 1024.41(c)(2)(vi)(A)(5) finalize the proposed § 1024.41(f)(3). For pursuant to § 1024.41(c)(2)(vi)(A). In refers to charges that are similar to late the reasons discussed below, the Bureau response to a commenter’s concern charges, penalties, and stop payment is adopting § 1024.41(c)(2)(vi)(B) as about the method of a borrower’s fees. The Bureau understands that late proposed, with the revisions discussed acceptance of an offer, the Bureau charges, penalties, and stop payment below. stresses that § 1024.41(c)(2)(vi) does not impose any specific requirements on fees are typically amounts imposed on Comments Received a borrower’s mortgage loan account servicers concerning what constitutes a directly by the servicer. By contrast, Timing of regulatory relief and borrower’s acceptance of loan costs such as inspection fees are resumption of reasonable diligence. The modification offer. For example, the typically paid by the servicer to a third Bureau received several comments Bureau acknowledges that acceptance party, and are therefore not similar to addressing proposed can take place verbally, and does not late charges, penalties and stop payment § 1024.41(c)(2)(vi)(B). As discussed necessarily need to occur in writing. As fees. These charges do not need to be above, proposed § 1024.41(c)(2)(vi)(B) to the concern about notices sent waived for a loan modification to would have provided servicers with pursuant to § 1024.41(b)(2)(i)(B), the qualify under § 1024.41(c)(2)(vi)(A)’s relief from the regulatory requirements Bureau notes that § 1024.41(b)(2)(i)(B) anti-evasion exception. to perform reasonable diligence to does not prohibit a servicer from adding For the reasons described above, the complete a loss mitigation application explanatory language to such a notice to Bureau is adopting and to send an acknowledgement notice allay potential confusion if a loan § 1024.41(c)(2)(vi)(A)(5), renumbered when a borrower accepts a loan modification offer is outstanding when from the proposal and with the modification meeting the criteria that the notice is sent. The Bureau revisions discussed above. the Bureau proposed in encourages this type of transparency in § 1024.41(c)(2)(vi)(A). Some industry communications. 41(c)(2)(vi)(B) commenters urged the Bureau to The Bureau also believes that it is The Bureau’s Proposal provide relief from these regulatory important to provide the regulatory requirements starting from the point relief contemplated by Section 1024.41(b)(1) requires that a that the servicer offers the loss § 1024.41(b)(2)(i)(B) only if the borrower servicer exercise reasonable diligence in mitigation option until the borrower has become current or accepts an offer obtaining documents and information to rejects the offer, rather than providing for a loan modification designed to end complete a loss mitigation application, such relief only if and when the any preexisting delinquency on the and § 1024.41(b)(2) requires that borrower accepts the offer. The industry mortgage loan upon the borrower promptly upon receipt of a loss commenters noted that, as proposed, the satisfying the servicer’s requirements for mitigation application, a servicer must rule would in some circumstances still completing a trial loan modification review the application to determine if it require the servicer to send the notice plan and accepting a permanent loan is complete, and send the written notice required by § 1024.41(b)(2)(i)(B), which modification. If the Bureau were to described in § 1024.41(b)(2)(i)(B) in the commenters implied could confuse provide relief from the requirements of connection with such an application borrowers who were still considering an § 1024.41(b)(1) and (b)(2) upon an offer within five days after receiving the outstanding offer of a streamlined loan of a loan modification option but prior application, acknowledging receipt of modification. Additionally, an industry to a borrower’s acceptance of that the application (‘‘acknowledgement commenter stated that the provision as option, a servicer would have no notice’’). As proposed, proposed may create confusion about obligation to exercise reasonable § 1024.41(c)(2)(vi)(B) would have how a servicer must confirm the diligence to complete a loss mitigation offered servicers relief from these borrower’s acceptance of the offer. application or to notify a borrower of regulatory requirements when a An industry commenter urged the the completion status of such an borrower accepts a loan modification Bureau not to require the resumption of application during a period of time meeting the criteria that the Bureau reasonable diligence efforts under when the borrower was still delinquent proposed in § 1024.41(c)(2)(vi)(A), but it § 1024.41(b)(1) when a borrower fails to and not in a loan modification trial plan would have required a servicer to perform under a trial loan modification or a permanent loan modification. The immediately resume reasonable plan offered pursuant to proposed Bureau does not believe it is appropriate diligence efforts as required under § 1024.41(c)(2)(vi)(A). This commenter to offer this regulatory relief when a § 1024.41(b)(1) with regard to any loss expressed concern that borrowers who borrower is delinquent and not in a loan mitigation application the borrower fail to perform under a trial loan modification trial plan or a permanent submitted before the servicer’s offer of modification plan are unlikely to be able loan modification, as such a borrower the trial loan modification plan if the to afford a home retention option and may be vulnerable to foreclosure borrower failed to perform under a trial stated that the requirement that activity, the assessment of default loan modification plan offered pursuant servicers resume reasonable diligence to related costs, or both during that time. to proposed § 1024.41(c)(2)(vi)(A) or if complete a loss mitigation application Similarly, the Bureau concludes that it the borrower requested further for those borrowers would thus impose is necessary to require a servicer to assistance. undue burden on servicers. The same resume the exercise of reasonable The Bureau solicited comment on commenter urged the Bureau to clarify diligence when a borrower fails to whether the Bureau should adopt that servicers are permitted to continue perform under a trial loan modification additional foreclosure referral to collect a complete loss mitigation plan offered pursuant to the exception protections for borrowers enrolled in a application while a borrower is in a trial or requests further assistance. trial loan modification program that loan modification plan that was offered In relieving servicers who evaluate a does not end any prior delinquency pursuant to § 1024.41(c)(2)(vi)(A). borrower for a streamlined loan upon the borrower’s acceptance of the The Bureau is finalizing modification on the basis of an offer, on the most effective ways to § 1024.41(b)(2)(i)(B) to provide servicers incomplete application from the achieve this additional protection, and with relief from the requirements of requirements of § 1024.41(b)(1) and to what extent this additional protection § 1024.41(b)(1) and (b)(2) upon the (b)(2), the Bureau again emphasizes, as

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it did in the proposed rule, that if a example, when a borrower who was not complete loss mitigation application borrower does wish to pursue a previously in forbearance contacts their within a certain timeframe, unless other complete application and receive the servicer to inquire about loss mitigation specified conditions are met. Section full protections of § 1024.41, options and is offered a streamlined 1024.41 generally does not apply to § 1024.41(c)(2)(vi) would not prohibit loan modification. The Bureau is small servicers.112 However, the pre- them from doing so. In addition, as therefore revising § 1024.41(c)(2)(vi)(B) foreclosure review period in discussed in the section-by-section to adopt a requirement that, if a § 1024.41(f)(1) does apply to small analysis of § 1024.41(c)(2)(vi)(A)(4), the borrower fails to perform under a trial servicers.113 Bureau stresses that servicers are loan modification plan offered pursuant The Bureau’s Proposal required to comply with § 1024.41, to § 1024.41(c)(2)(vi)(A) or requests including § 1024.41(b)(1) and (2), if the further assistance, the servicer must The Bureau proposed to revise borrower submits a new loss mitigation send the borrower the notice required § 1024.41(f) to provide a special COVID– application after accepting a loan by § 1024.41(b)(2)(i)(B), with regard to 19 Emergency pre-foreclosure review modification pursuant to the most recent loss mitigation period (the ‘‘special pre-foreclosure § 1024.41(c)(2)(vi)(A). application the borrower submitted review period’’) that generally would Trial loan modification plans— prior to the servicer’s offer of the loan have prohibited servicers from making a additional protections. The Bureau modification under the exception, first notice or filing because of a received one comment from a consumer unless the servicer has already sent that delinquency from the effective date of advocate commenter specifically urging notice to the borrower. the rule until after December 31, 2021. the Bureau to prohibit foreclosure Specifically, the Bureau proposed to referral for a borrower who enters a trial Final Rule amend § 1024.41(f)(1)(i) to state that a loan modification plan that was offered For the reasons discussed above, the servicer shall not make the first notice on the basis of an incomplete Bureau is adopting § 1024.41(b)(2)(i)(B) or filing unless a borrower’s mortgage application pursuant to proposed as proposed, with a revision to require loan obligation is more than 120 days § 1024.41(c)(2)(vi)(A). an acknowledgement notice under delinquent and paragraph (f)(3) does not The Bureau is not including a specific certain circumstances. apply. The Bureau proposed to add new provision in § 1024.41(c)(2)(vi) § 1024.41(f)(3), which would have prohibiting foreclosure referral for a 41(f) Prohibition on Foreclosure provided that a servicer shall not rely on borrower who enters a trial loan Referral paragraph (f)(1)(i) to make the first modification plan that was offered on 41(f)(1) Pre-Foreclosure Review Period notice or filing until after December 31, the basis of an incomplete application 2021. 41(f)(1)(i) pursuant to proposed The proposed special pre-foreclosure § 1024.41(c)(2)(vi)(A). The Bureau notes As noted below, the Bureau proposed review period was intended to help that the special COVID–19 loss conforming amendments to ensure that every borrower who is mitigation procedural safeguards that § 1024.41(f)(1)(i) to help implement the experiencing a delinquency between the the Bureau is adopting in this final rule proposed special pre-foreclosure review time the rule becomes final until the as § 1024.41(f)(3) will provide period in proposed § 1024.41(f)(3). The end of 2021, regardless of when the additional protection from foreclosure Bureau did not receive any comments delinquency first occurred, will have until January 1, 2022, for certain on this aspect of the proposal. As sufficient time in advance of foreclosure borrowers who enter into a trial loan discussed below in the section-by- referral to pursue foreclosure avoidance modification trial plan offered on the section analysis of § 1024.41(f)(3), the options with their servicer. The Bureau basis of an incomplete application Bureau is not finalizing the special pre- proposed the intervention to address pursuant to the exception in foreclosure review period as proposed concerns that borrowers and servicers § 1024.41(c)(2)(vi)(A). and, thus, is not finalizing any will likely both need additional time Though the Bureau is not revising corresponding amendments in before foreclosure referral in the months § 1024.41(c)(2)(vi) to provide foreclosure § 1024.41(f)(1)(i). ahead to help ensure borrowers have a referral protection for a borrower who meaningful opportunity to pursue 41(f)(3) Temporary Special COVID–19 enters a trial loan modification plan that foreclosure avoidance options Loss Mitigation Procedural Safeguards was offered under the new anti-evasion consistent with the purposes of RESPA. exception, the Bureau recognizes the Section 1024.41(f) prohibits a servicer As explained in more detail in the importance of ensuring that borrowers from referring a borrower to foreclosure proposal, the Bureau is concerned that who fail to perform under a trial loan in several circumstances. Specifically, servicers will face capacity constraints modification plan offered pursuant to § 1024.41(f)(1) prohibits a servicer from that will slow down their operations § 1024.41(c)(2)(vi)(A) or who request making the first notice or filing required and increase error rates associated with further assistance are provided with the by applicable law for any judicial or the servicing of delinquent borrowers. information necessary to complete a loss non-judicial foreclosure process (‘‘first With respect to borrowers, the Bureau is mitigation application. The Bureau also notice or filing’’ or ‘‘foreclosure concerned that borrowers have notes that some borrowers who enter referral’’), unless the borrower’s encountered, or will encounter, into a trial loan modification plan that mortgage loan obligation is more than obstacles to pursuing foreclosure was offered on the basis of an 120 days delinquent, the foreclosure is avoidance options, such as physical incomplete application pursuant to based on a borrower’s violation of a due- barriers that may undermine their § 1024.41(c)(2)(vi)(A) and then fail to on-sale clause, or the servicer is joining ability to pursue foreclosure avoidance perform on that plan may not have the foreclosure action of a superior or options sooner or confusion caused by received an acknowledgement notice subordinate lienholder. Regulation X the present circumstances that may have with regard to the most recent loss generally refers to this prohibition as a interfered with their ability to obtain mitigation application the borrower pre-foreclosure review period. Section and understand important information submitted prior to the servicer’s offer of 41(f)(2) establishes an additional the loan modification under the prohibition on making the first notice or 112 12 CFR 1024.30(b)(1). exception. This could be the case, for filing if the borrower submits a 113 12 CFR 1024.41(j).

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about the status of their loan and their servicer to ensure that one of three who owns their loans. Other foreclosure avoidance options. A temporary procedural safeguards has commenters who generally supported servicer facing capacity constraints will been met before making the first notice the proposed special pre-foreclosure be less able to dedicate the resources or filing because of a delinquency: (1) review period stated that they believed necessary to borrowers who are facing The borrower submitted a completed the proposed approach would give time these obstacles. loss mitigation application and for borrowers to recover economically Ensuring borrowers have sufficient § 1024.41(f)(2) permits the servicer to and explore loss mitigation options to time before foreclosure referral should, make the first notice or filing; (2) the avoid foreclosure. Some commenters in turn, help to avoid the harms of dual property securing the mortgage loan is also cited racial equity concerns, tracking, including unwarranted or abandoned under state law; or (3) the explaining that unnecessary unnecessary costs and fees, and other servicer has conducted specified foreclosures would have serious harm when a potentially unprecedented outreach and the borrower is negative consequences on communities number of borrowers may be in need of unresponsive. The temporary of color, and that the proposal could loss mitigation assistance at around the procedural safeguards are applicable help address those concerns. A same time later this year after the end only if (1) the borrower’s mortgage loan consumer advocate commenter echoed of forbearance periods and foreclosure obligation became more than 120 days and amplified the Bureau’s concerns moratoria. The Bureau requested delinquent on or after March 1, 2020; described in the proposal. That comment on alternatives that could and (2) the statute of limitations commenter provided additional support narrow the scope of the special pre- applicable to the foreclosure action and asserted that there will be a spike foreclosure review period while being taken in the laws of the State of hundreds of thousands of seriously mitigating harm that could arise from a where the property securing the delinquent mortgage borrowers this fall, surge in loss mitigation-related default mortgage loan is located expires on or that there is a serious concern that servicing activity during a period when after January 1, 2022. This temporary servicers will be unprepared because of borrowers might need a lot of assistance. provision will expire on January 1, problems some servicers exhibited over The Bureau recognized that, if adopted 2022, meaning that the procedural the last year, and that unnecessary as proposed, the special pre-foreclosure safeguards in § 1024.41(f)(3) would not foreclosures that could occur as a result review period could have prevented a be applicable if a servicers makes the of would cause serious harm. servicer from making the first notice or the first notice or filing required by Commenters who expressed general filing even in circumstances where applicable law for any judicial or non- opposition to the proposed special pre- additional time would merely delay judicial foreclosure process on or after foreclosure review period cited a range rather than prevent avoidable January 1, 2022. of concerns related to, among other foreclosure. However, the Bureau was things, the Bureau’s assumptions, the concerned that alternatives would be Comments Received effect the intervention would have on difficult to craft and implement, Most commenters addressed the the housing markets, mortgage markets, particularly under very tight time proposed special pre-foreclosure review and servicer liquidity, and the Bureau’s frames. The Bureau believed that the period. The comments covered issues authority, each discussed more fully straightforward and simple ‘‘date ranging from general support and below. certain’’ approach in the proposal opposition to specific aspects of the After considering the comments, the would be easy to implement, and its proposal, including specific suggestions Bureau is persuaded that it should not brevity would partially mitigate on overall scope. finalize the proposed special pre- concerns. The alternatives discussed in General Support and Opposition. A foreclosure review period as proposed. the Proposal included options to (1) use number of commenters expressed Instead, the Bureau is adopting a more a date certain other than December 31, general support for the Bureau’s stated narrowly tailed approach that balances 2021; (2) provide exemptions from the goals underlying the proposal. While the goals of foreclosure avoidance in December 31, 2021 date certain; or (3) most commenters suggested changes to light of servicer capacity and borrower adopt a different approach such as the proposal, several, including at least confusion concerns while also allowing requiring a grace period after exiting one industry commenter, an individual, servicers to proceed with foreclosure forbearance, keying the special pre- and a consumer advocate commenter, referral where additional procedural foreclosure review period to the length urged the Bureau to finalize as safeguards and time are unlikely to of the delinquency, or ending the proposed. Those who wanted to finalize help, or are unnecessary to give, a special pre-foreclosure review period on the special pre-foreclosure review borrower pursue foreclosure avoidance a date that is based on when a period as proposed (the ‘‘proposed options. This more narrowly tailored borrower’s delinquency begins or approach’’) argued, for example, that the approach adopts aspects of the original forbearance period ends, whichever proposed approach struck the right proposal, but also incorporates occurs last. The Bureau explained that balance between minimizing costs to exceptions on which the Bureau sought it believed each option carried its own servicers and allowing sufficient time and received comment that address set of advantages and disadvantages. for loss mitigation review, and that the circumstances where additional For the reasons discussed below, the proposed approach would create clarity procedural safeguards and time are least Bureau is not finalizing the special pre- and certainty to customers who may likely to be beneficial. Because the foreclosure review period as proposed. have become disengaged because of Bureau is adopting this more narrowly Instead, as finalized, § 1024.41(f)(3) will confusion created by evolving tailored approach, the Bureau also temporarily provide a more tailored requirements. believes it is appropriate to now refer to procedural protection to minimize A group of State Attorneys General this intervention as Temporary Special avoidable foreclosures in light of a expressed general support for the COVID–19 Loss Mitigation Procedural potential wave of loss mitigation-related proposed special pre-foreclosure review Safeguards, or procedural safeguards, to default servicing activity during a period because they believed it would better reflect the temporary and targeted period when borrowers are also likely to provide a modest expansion of current nature of the requirement. need extra assistance. Final requirements that would bring fairness The Bureau continues to believe the § 1024.41(f)(3) generally requires a to borrowers who have no control over proposed approach would be simple to

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implement and would give time and experience capacity issues. For borrowers who have longer flexibilities to servicers and borrowers example, an industry commenter argued delinquencies. Others expressed to identify foreclosure alternatives in that most borrowers who may exit concern that the proposal could make light of the anticipated wave of loss forbearance this fall will not require bankruptcy and loan modification less mitigation-related default servicing significant servicer resources because likely if the size of the borrower’s activity. However, the Bureau is also they will qualify for a loss mitigation default becomes unmanageable. concerned that the proposed approach option that requires few servicer An industry commenter argued that would temporarily prevent servicers resources, such as a payment deferral or the Bureau was wrong to assume that from making the first notice or filing streamlined loan modification. That borrowers will incur unnecessary fees, where doing so is the best remaining commenter also argued that, to the stating that fees associated with an option (because, for example, the extent any capacity concerns exist, they erroneous foreclosure referral are not borrower does not qualify for a relate to servicers’ ability to implement recoverable from the borrower. foreclosure alternative and delaying the and communicate changing regulatory The Bureau acknowledges that it is first notice or filing would do nothing and investor requirements, and not to impossible to predict what will occur more than increase the borrower’s volume. The commenter stated that the later this year, and thus, it is possible delinquency). Further, the Bureau is proposal would heighten that concern. that some of the Bureau’s assumptions persuaded that the proposed approach A number of commenters, including will prove to be inaccurate. However, would not have sufficiently encouraged consumer advocate commenters, available data show that servicers could borrowers and servicers to work industry commenters, and individuals, be faced with potentially unprecedented together towards a foreclosure argued that it was wrong to assume that volumes of loss mitigation activity later alternative because it did not include the special pre-foreclosure review this fall when approximately 900,000 incentives for borrowers or servicers to period would encourage or facilitate borrowers could become eligible for act promptly. Instead, it may have loss mitigation review. They generally foreclosure referral at around the same incentivized borrowers and servicers to argued that the proposal was nothing time. Some of these borrowers will delay any communications because it more than an extended foreclosure likely exit forbearance before September would have imposed a foreclosure moratorium because it would prevent 1, and many may opt into payment restriction that applied regardless of the servicers from making the first notice or deferrals or streamlined loan specific circumstances. filing without imposing any affirmative modifications that are less resource Inaccurate Assumptions. A number of loss mitigation review requirements, intensive than full loss mitigation commenters challenged the Bureau’s and that such an intervention would do evaluations. However, servicers will stated assumptions underlying the nothing more than delay, rather than likely still need to process a high proposed special pre-foreclosure review prevent, any increased foreclosure volume of borrowers in the fall to period and argued that the proposed activity. One of these industry determine eligibility for these special pre-foreclosure review period is commenters also argued that the streamlined options and to otherwise unnecessary. For example, a number of proposal would do nothing to resolve assist with related issues, potentially industry and individual commenters borrower confusion concerns or to straining servicer resources. Further, argued that the Bureau was wrong to prompt communications and would even if most borrowers take advantage assume that there will be a wave of instead cause borrowers to further delay of streamlined options, borrowers consumers seeking loss mitigation later contacting their servicers. needing additional assistance, including this year. They argued that the number Because they believe the Bureau’s through a full evaluation based on a of borrowers who need loss mitigation assumptions are wrong, several complete loss mitigation application, assistance later this year will be much commenters argued that the proposed could still be significant. And, while smaller than the Bureau predicted intervention would not help borrowers many affected borrowers are likely to because the economy is improving, and could harm them. Some have equity in their homes, considerable borrowers have already begun exiting commenters argued that the proposal servicer resources may be necessary in forbearance,114 and borrowers who can would be unhelpful because servicers the fall to assist borrowers in assessing no longer afford their homes can avoid must already comply with current whether selling their home is their best foreclosure by selling their homes investor, Federal law, and State law available, or preferred, option. because most borrowers have equity in requirements that would render any Foreclosure referral could limit those their homes.115 One industry potential protections created by the rule borrowers’ options and frustrate those commenter cited a recent report irrelevant. Some commenters argued borrowers’ ability to pursue foreclosure indicating that the rate of foreclosures that the proposal would harm borrowers alternatives. As a result, and as over the next two years is expected to by, for example, allowing the borrower’s discussed in more detail in the be consistent with the historical past due debt to accumulate and proposal, servicers are likely to average. artificially delay opportunities to exit nevertheless face capacity constraints Some commenters also argued that it while home prices are elevated. Other that could increase error rates. was wrong to assume that servicers will commenters, who argued that the Further, because of unique proposal essentially extends the circumstances created by the pandemic, 114 An industry commenter argued that 25 percent moratorium for all borrowers to a date borrowers may be delayed in seeking of the loans included in the Bureau’s assumptions certain, expressed concern that this loss mitigation assistance and may face will not qualify for the six-month extension of approach could harm borrowers, obstacles that delay their efforts, which forbearance (for a maximum of 18 months) because especially borrowers with pre-pandemic will increase the likelihood that a surge they are not government agency or GSE loans, and that servicers have already begun reaching out to delinquencies, by leaving them with no of borrowers will need assistance during those borrowers. exit strategy. For example, an industry this critical period. For example, as 115 Commenters generally made broad statements commenter argued that 18 months is the discussed in more detail in the that the housing prices have been increasing, practical limit of the beneficial effect of proposal, borrowers may have received although some pointed to specific statistics. For example, an industry commenter cited a report forbearance and stated that payment outdated or incorrect information that indicating that 80 percent of homes have at least 20 deferrals and streamlined loan delays their requests for loss mitigation percent equity. modifications may not be available to options, or they may have deferred

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consideration of their long-term ability issues could widen the racial wealth been overstated in the past.116 Further, to meet their monthly mortgage gap. Others argued that, because most the final rule should reduce this risk payment obligations in favor of short- borrowers have equity, the proposal and because the final rule will only limit a term needs concerning health, the effects it would cause on the servicer’s ability to proceed with the childcare, and lost wages. Many housing market are unjustified. first notice or filing in limited borrowers also may not have taken steps Relatedly, a number of individual circumstances. Finally, while the final to address their delinquency because commenters expressed concern that the rule will impose costs on servicers, the they expected that the foreclosure proposal would create moral hazards protections are narrowly tailored and moratoria would be extended again or and would be inequitable. For example, apply for a limited period of time. Thus, that they would have another the some commenters expressed concern costs should be minimized compared to opportunity to extend their forbearance. that the proposal would incentivize the proposal and they are unlikely to The Bureau believes that such borrowers who were not suffering a majorly contribute to credit access expectations are understandable given concerns. For these reasons, the Bureau financial hardship to skip payments or repeated extensions of the same does not believe that these issues not bring their mortgage loan obligations throughout the current economic and present a significant concern that would current while servicers were prohibited health crisis. justify curtailing consumer protections. As some commenters emphasized, if from making the first notice or filing, Servicer liquidity concerns. Several these obstacles prevent borrowers from while at the same time first time home industry commenters expressed concern having a meaningful opportunity to buyers could be prevented from that the proposed special pre- pursue foreclosure alternatives before purchasing a home because of rising foreclosure review period could cause a foreclosure referral, the harm could be prices. They also expressed concern that strain on servicer liquidity. For severe. borrowers would be allowed to live in example, an industry commenter noted The Bureau acknowledges that the their homes for free for many years that some servicers have already proposed special pre-foreclosure review because the court system could be experienced strain in connection with period was not sufficiently targeted to backed up when foreclosures are the lengthy forbearances and stated that address the need for procedural eventually allowed to proceed. the proposal could deepen that strain. safeguards in light of the scope of the An industry commenter expressed The commenter explained that, while anticipated wave of loss mitigation concern that the proposal would further updates to GSE policies mitigated some applications, and could harm borrowers reduce credit availability, particularly liquidity concerns, servicers would be if, for example, the review period were for borrowers with less-than-perfect required to continue advancing payment to cause borrowers to delay credit. The commenter argued that the for escrow items and other costs, which communicating with their servicers private label securities market is capable could cause additional strains. The about foreclosure avoidance options, of providing safe and responsible access Bureau appreciates these concerns. and the borrowers’ delay in seeking to credit to those borrowers, but may be However, as discussed herein, the foreclosure avoidance options causes Bureau is finalizing a more targeted, more hesitant to do so if they are subject borrowers to lose eligibility for a narrower intervention that should to strict restrictions and are left without foreclosure alternative or to incur mitigate these concerns because it is support relative to the support that additional costs. Further, the Bureau is limited in duration and scope, such that persuaded by comments that, if a broad other markets receive. it will not delay a servicer from making swath of borrowers all simply delay While the Bureau appreciates markets the first notice or filing except in certain seeking foreclosure avoidance options, and moral hazard concerns, the Bureau circumstances for a brief period of time. an even larger number of borrowers may believes that the final rule, as revised Legal authority. Several industry become eligible for foreclosure referral from the proposal, will mitigate these commenters questioned the Bureau’s at around the same time. To address concerns. Although it is possible that legal authority for the proposed special these concerns, the Bureau is finalizing the final rule could affect housing pre-foreclosure review period, arguing, narrower temporary loss mitigation markets, housing markets could also be among other things, that the Bureau procedural safeguards that the Bureau affected if the Bureau does not finalize lacks legal authority under RESPA for believes will facilitate and encourage consumer protections because the the broad intervention proposed.117 A loss mitigation reviews while reducing circumstances could lead to an upsurge few of these industry commenters the risk of servicer errors that cause of foreclosures that could have further stated that, if the Bureau moved borrower harm in light of the otherwise been avoided, which would forward with the intervention, it would anticipated wave of loss imitation- in turn affect housing prices. It is also be appropriate to narrow it to include related default servicing activity and true that a small number of borrowers several exceptions, including for obstacles facing consumers discussed may take advantage of the procedural nonresponsive borrowers or borrowers above. See the section-by-section safeguards under the final rule even if 116 analysis of § 1024.41(f)(3)(i) through (iii) they could resume payments without See Peter Ganong & Pascal Noel, Why Do for additional discussion. Borrowers Default on Mortgages? A New Method for assistance, but the Bureau is not aware Moral Hazards and Market Effects. Causal Distribution, (Becker Friedman Inst., Working Paper No. 2020–100, 2020), https:// Many commenters, including of any evidence indicating that a significant number of borrowers would bfi.uchicago.edu/wp-content/uploads/BFI_WP_ individuals and industry commenters, 2020100.pdf. expressed concern that the proposed do so. Using data from 2012 to 2015, 117 Several commenters also stated that the special pre-foreclosure review period which may not be directly comparable proposed pre-foreclosure review period raised would harm the housing or mortgage to the current economic crisis, recent constitutional concerns, including under the First economic research finds that adverse Amendment and Article I, Section 10, Clause 1 (the markets by driving up housing prices Contract Clause). The Bureau has considered these and reducing the availability of credit, events were a necessary condition for 97 arguments and concludes that the proposed pre- which could harm first time percent of mortgage defaults, and not foreclosure review intervention and the final rule’s homebuyers and renters who may be solely because borrowers were procedural safeguards are fully consistent with underwater. This research suggests that constitutional requirements. The Bureau further priced out of the market. At least one believes that the final rule adequately addresses commenter expressed concern that these moral hazard concerns have generally commenters’ underlying equitable concerns.

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that would not qualify for loss meaning that it would have applied foreclosure filings will be prompted by mitigation options. from the effective date of the rule the Bureau’s own rule. The Bureau also As described in Part IV (Legal through December 31, 2021. Some notes that existing regulatory Authority), Section 19(a) of RESPA commenters expressing concern about requirements, including Regulation X, authorizes the Bureau to prescribe such the proposed special pre-foreclosure prohibitions against unfair, deceptive, rules and regulations, to make such review period argued, for example, that or abusive practices, and State law, interpretations, and to grant such it would provide limited protection to a apply to borrowers who become eligible reasonable exemptions for classes of small subset of borrowers who become for foreclosure referral before August 31, transactions, as may be necessary to eligible for foreclosure referral between 2021, or after December 31, 2021. The achieve the purposes of RESPA, which the effective date of the rule and Bureau intends to use the full scope of include its consumer protection December 31, 2021. These commenters its supervision and enforcement purposes. The consumer protection expressed concern that that this could authority to ensure that servicers purposes of RESPA include ensuring incentivize foreclosure referral before comply with those existing that servicers respond to borrower the rule becomes effective, and that it requirements. requests and complaints in a timely would not provide protections for Potential Exceptions. As noted above, manner and maintain and provide borrowers exiting forbearance just the Bureau sought comment on whether, accurate information, helping borrowers before, or after, December 31, 2021. if it adopted a date certain approach, it prevent avoidable costs and fees, and The Bureau believes the approach should add exceptions that would allow a servicer to make the first notice or facilitating review for foreclosure under final § 1024.41(f)(3) is better avoidance options. Section 6(k)(1) of filing before December 31 (the ‘‘date tailored than the proposed approach to RESPA specifically prohibits servicers certain approach with exceptions’’ facilitate loss mitigation review. from, among other items, failing to take approach). The Bureau solicited However, the Bureau concludes that timely action to respond to borrower comment on possible exceptions where final § 1024.41(f)(3), like the proposed requests to correct errors.118 the servicer (1) completed a loss special pre-foreclosure review period, The Bureau’s temporary special mitigation review of the borrower and should apply only for a limited period COVID–19 loss mitigation procedural the borrower was not eligible for any of time. As described more in the safeguards are intended to achieve these non-foreclosure option or (2) made section-by-section analysis of RESPA consumer protection purposes, certain efforts to contact the borrower including providing procedural § 1024.41(f)(3)(iii), final § 1024.41(f)(3) and the borrower did not respond to the protections to help ensure that will apply during the same period of servicer’s outreach. Many industry consumers (1) are appropriately time that would have been covered by commenters supported finalizing a date evaluated for foreclosure avoidance the proposed special pre-foreclosure certain approach with exceptions (or options in light of an anticipated wave review period, i.e., from the effective preferred it over the proposed approach of loss mitigation applications causing date of the rule through December 31, or other alternatives). These servicer capacity constraints and (2) do 2021. While this is a very short period commenters argued, for example, that not incur the potential unnecessary of time, and some borrowers adding exceptions would ensure that costs and fees associated with experiencing COVID–19-related the final rule protects borrowers who foreclosures that can be avoided. The hardships will likely be exiting need it while allowing foreclosure to temporary special COVID–19 loss forbearance or remain delinquent long proceed where additional time is mitigation procedural safeguards are after December 31, 2021, the Bureau unlikely to help the borrower or the also intended to minimize the potential believes that this is the critical period of servicer. wave of borrowers who may seek loss time when current rules may be A number of consumer advocates and mitigation at the same time, which insufficient because servicers are most some industry commenters opposed could result in increased servicer errors likely to suffer capacity issues, which adding exceptions to the date certain or an inability by servicers to take could also exacerbate concerns that approach. These commenters expressed timely action to respond to borrowers borrowers could face obstacles to concern that, for example, the requests to correct errors. pursuing loss mitigation options during exceptions would swallow the rule, Further, as described below, under that period. The Bureau expects that would fail to provide appropriate the section-by-section analyses of servicers will have fewer capacity protections to communities of color, or § 1024.41(f)(3)(ii)(A) through (C), the concerns before August 31, 2021, and would increase the likelihood of Bureau’s targeted loss mitigation after December 31, 2021, because the servicer error and create unnecessary procedural safeguards will enable volume of borrowers seeking loss confusion without adding any benefits. servicers to move forward with mitigation assistance during those After considering these comments and foreclosure if the property securing the timeframes should be more staggered the general comments summarized mortgage loan is abandoned under State and much lower. While there may be above, the Bureau believes that allowing or municipal law, and in circumstances some risk of servicers rushing to servicers to make the first notice or where a borrower is unresponsive or foreclose on those loans subject to the filing in certain circumstances is does not qualify for loss mitigation Bureau’s final temporary procedural important both for purposes of options. The Bureau believes these new safeguards, based on its expertise and consumer protection and for the proper procedural safeguards respond to experience in the mortgage servicing functioning of the market. As discussed comments that the original proposal markets, the Bureau believes that in detail below and in the section-by- may have been overly broad and better servicers are more likely to prioritize section analysis of § 1024.41(f)(3)(ii) ensure that the rule is tailored to soliciting borrowers for loss mitigation through (iii), to address these concerns, preventing avoidable foreclosures. during the few week gap between the the Bureau is not finalizing the special Time Period Covered. The proposed anticipated end of nationwide pre-foreclosure review period as special pre-foreclosure review period foreclosure moratoria and the effective proposed and is instead finalizing a would have ended on a date certain, date of the Bureau’s rule. Commenters more tailored procedural safeguards offered no evidence to suggest approach to minimize avoidable 118 12 U.S.C. 2605(k)(1). otherwise, much less that any such foreclosures in light of a potential wave

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of loss mitigation applications. The not be prohibited from making the first limiting the exception based on the date Bureau believes that the approach taken notice or filing in these situations. the review occurred. in final § 1024.41(f)(3) should help Completed Loss Mitigation After considering these comments, the encourage borrowers and servicers to Application Exception. The Bureau also Bureau concludes that further delaying work together to pursue foreclosure specifically sought comment on whether servicers from making the first notice or alternatives while allowing servicers to to include an exception if the servicer filing if the servicer has already make the first notice or filing if the has completed a loss mitigation review determined that the borrower does not servicer has given the borrower a of the borrower and the borrower is not qualify for a non-foreclosure alternative meaningful opportunity to pursue loss eligible for any non-foreclosure option is unlikely to help borrowers or mitigation options or additional time is or the borrower has declined all servicers. As explained in the section- unlikely to result in foreclosure available options (the ‘‘completed loss by-section analysis of avoidance. mitigation application exception’’). A § 1024.41(f)(3)(ii)(A) below, the Bureau Unresponsive Borrower. The Bureau number of industry commenters is finalizing temporary special COVID– specifically sought comment on whether supported this type of exception. These 19 loss mitigation procedural safeguards to include a potential exception if the commenters explained that a completed that should help ensure servicers that servicer has exercised reasonable loss mitigation application exception servicers are permitted to make the first diligence to contact the borrower and would ensure that servicers focus their notice or filing in these situations. has been unable to reach the borrower limited resources on borrowers who are Additional Exceptions. Commenters (‘‘unresponsive borrower exception’’). A eligible for loss mitigation options and proposed a number of additional number of industry commenters who express an interest in home exceptions that they believed would supported an unresponsive borrower retention, while allowing borrowers for allow servicers to proceed with exception. These commenters explained whom foreclosure is the best option to foreclosure referral without significantly that there is always a population of proceed without unnecessarily stripping harming borrowers. For example, some borrowers who will not respond to their equity. An industry commenter commenters, including consumer servicer outreach until after foreclosure expressed its belief that such an advocate commenters, urged the Bureau referral occurs, at which point the exception would allow foreclosure to require servicers to offer specific loss referral will prompt the borrower to referral to occur for a small subset of mitigation options before referral. An reach out to their servicer and explore borrowers without increasing borrower industry commenter suggested allowing foreclosure alternatives. Some harm to the extent that it would foreclosure to proceed if the borrower commenters also expressed concern that outweigh other concerns, such as the has not entered into a forbearance plan prohibiting foreclosure referral in these proper functioning of the housing or loss mitigation process. Another circumstances could unintentionally market. This commenter also noted that industry commenter suggested adding create a larger wave of foreclosures later borrowers may become eligible for State an exception for servicers who have because the delinquent amounts will assistance after foreclosure referral, followed program loss mitigation continue to accrue, and borrowers may including certain mediation and loss lose their ability to obtain a foreclosure mitigation programs, which the requirements for agency or GSE loans. alternative. commenter stated are highly successful The Bureau declines to adopt the A group of consumer advocate and may lead to better results for the additional exceptions suggested by commenters expressed concern that an borrower. Another industry commenter commenters and is instead finalizing exception for unresponsive borrowers expressed support for this type of temporary special COVID–19 loss would encourage less rigorous and less exception, noting that it has seen mitigation procedural safeguards, as effective servicer outreach. A State dramatic declines in bankruptcy filings discussed below. Among other reasons, elected official expressed opposition to and that it is concerned that continuing the Bureau believes that incorporating the exception and noted that the to delay foreclosure for borrowers that additional ideas offered by commenters pandemic has created unique burdens have already been evaluated for non- would add complexity and costs. The that could increase the likelihood that a bankruptcy alternative will lessen the Bureau believes its revised approach borrower is unresponsive over a short likelihood of successful bankruptcy strikes the right balance of ensuring period of time, such as hospitalization reorganization. This commenter borrowers have a meaningful of the borrower or a family member or explained that a successful bankruptcy opportunity to pursue foreclosure additional caregiving responsibilities. reorganization is much more likely if it alternatives while allowing servicers to Commenters offered various ideas occurs before large arrearages have proceed with foreclosure referral when related to the scope and framing of an accumulated. additional time is unlikely to aid in that unresponsive borrower exception, Commenters who opposed a goal. including suggestions on what types of completed loss mitigation application Potential Alternative Approaches. outreach should qualify, the timeframe exception argued, for example, that a The Bureau solicited comment on for such outreach, and when a borrower borrower’s financial situation may several alternatives to the proposed should be considered unresponsive. rapidly change, and that the borrower special pre-foreclosure review period, After considering these comments, the should not be denied a second chance including imposing a ‘‘grace period’’ Bureau concludes that further delaying at loss mitigation. A group of consumer within which servicers could not make servicers from making the first notice or advocate commenters expressed the first notice or filing for a certain filing for delinquent borrowers who are concern that the exception would allow number of days after the borrower unresponsive could harm both the servicers to proceed with foreclosure exited forbearance, keying the special delinquent borrower and the broader referral before the borrower has a full pre-foreclosure review period to the housing market. As explained in the opportunity to be considered for loss length of the borrower’s delinquency, or section-by-section analysis of mitigation options. ending the special pre-foreclosure § 1024.41(f)(3)(ii)(C) below, the Bureau Commenters also offered various review period on a date that is based on is finalizing temporary special COVID– ideas relating to the scope of any when a borrower’s delinquency begins 19 loss mitigation procedural safeguards complete loss mitigation application or forbearance period ends, whichever that should help ensure servicers will exception that largely revolved around occurs last.

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Most consumer advocates preferred a and would leave some borrowers Some commenters suggested limiting grace period approach to the proposed unprotected during the period of time the scope based on the cause of date certain approach, and at least one when the Bureau finds intervention is delinquency so that the provision only industry commenter supported it. most needed to help ensure borrowers applies to borrowers who can Commenters who preferred the grace have a meaningful opportunity to demonstrate a financial hardship, with period approach generally believed that pursue foreclosure avoidance options some suggesting an even narrower scope it would give most COVID–19-affected consistent with the purposes of RESPA. so that it only applies if the financial borrowers time to find an affordable The Bureau believes that final hardship is COVID–19-related. An solution without swamping servicers § 1024.41(f)(3), which imposes individual commenter who indicated with a single date on which foreclosure procedural safeguards for the narrow they were denied forbearance because referrals may begin because it would period of time through the end of 2021 they had already used forbearance in continue to apply after December 31, when a borrower’s ability to pursue connection with a previous financial 2021. These commenters argued that it foreclosure avoidance options is most hardship asked the Bureau to ensure the takes significant time and effort to move likely to be frustrated, is more final rule applies even if the borrower borrowers from a forbearance plan to a appropriately tailored to facilitate loss experienced a financial hardship in the sustainable permanent solution. mitigation review during the period of past. Few commenters addressed other time when existing requirements may be Some commenters asked the Bureau alternatives, although at least one insufficient. As noted herein, the to exclude particular loans, such as consumer advocate commenter Bureau intends to use the full scope of loans that are not government backed, expressed support for an alternative its supervision and enforcement those that are government backed, loans approach that would apply a pre- authority to ensure that servicers located in States that already have foreclosure review period based on the comply with existing requirements. special COVID–19-related rules, open- later of the date the borrower’s Scope. Under the proposed rule, the end loans, or business-purpose loans. delinquency begins or forbearance special pre-foreclosure review period Some commenters also discussed which period ends. However, another would have applied to all delinquent entities they believe should be subject to consumer advocate commenter opposed loans that are secured by the borrower’s any new foreclosure restriction adopted that approach because they were principal residence, regardless of when by the final rule. A group of consumer concerned that it provided the weakest the first delinquency occurred. The advocate commenters argued that the final rule should apply to small protections to borrowers who need it Bureau sought comment on whether this most. Another commenter urged the servicers, while an industry commenter category of loans was the appropriate Bureau to develop a solution that would and an individual argued that the final scope of coverage for the proposed focus on making contact with the rule should exempt small lenders and special pre-foreclosure review period. borrower and determining which servicers. Many commenters addressed this foreclosures can be avoided, and that After considering all of the comments question. Some commenters urged the the Bureau should provide a soft addressing the scope of the proposed Bureau to adopt a broader scope, while landing for borrowers who cannot avoid special pre-foreclosure review period, others asked that the scope be narrowed. foreclosure. the Bureau is limiting the scope of the A few commenters suggested applying For example, some commenters, new temporary special COVID–19 loss a different date certain for various including consumer advocate mitigation procedural safeguards to reasons. At least one commenter commenters, argued that any final rule apply only to mortgages that became suggested applying a more flexible date should apply to borrowers with pre- more than 120 days delinquent on or certain that is tied to the last-announced pandemic delinquencies. These after March 1, 2020. Thus, the forbearance extensions. commenters generally argued that procedural safeguards are not applicable A number of commenters, including borrowers whose delinquencies began for a mortgage that became more than individual, consumer advocate, and before the pandemic are among the most 120 days delinquent prior to March 1, industry commenters, suggested the vulnerable because borrowers with 2020, and a servicer may make the first Bureau consider different alternatives longer delinquencies are more likely to notice or filing before January 1, 2022, that were not specifically discussed in need additional assistance from their without ensuring a procedural safeguard the proposed rule, such as servicers. In contrast, others, including has been met in those circumstances. implementing the California individuals, industry commenters, and The Bureau believes this narrowly Homeowner’s Bill of Rights, prohibiting other consumer advocate commenters, tailored approach will address a number foreclosure referral until the later of a argued that the scope should be limited of concerns raised by commenters date certain or 120 days after based on the timing of delinquency. without imposing overly burdensome forbearance, funding additional These commenters argued, for example, requirements on servicers that could outreach to borrowers, or requiring that loans that first became delinquent prove impossible to implement by the servicers to offer specific loss mitigation before the pandemic are unlikely to effective date of the final rule. For options. benefit from an additional delay in example, the Bureau concludes that the The Bureau declines to adopt one of foreclosure referral. Some commenters final rule should focus on providing the alternatives suggested by also argued that limiting any foreclosure relief to borrowers who became severely commenters and is instead finalizing restriction based on when the mortgage delinquent near the beginning of the temporary special COVID–19 loss loan became delinquent would ensure COVID–19 pandemic or after it began. mitigation procedural safeguards, as the rule is tailored to COVID–19-related These borrowers are the least likely to discussed below. Although the Bureau delinquencies. These commenters have already meaningfully pursued agrees that a grace period approach suggested various cutoffs, such as foreclosure alternatives and are the most would offer some advantages, it also has excluding loans that became delinquent likely to have suffered a sudden but several disadvantages. For example, it before March 1, 2020, that became 120 temporary financial strain and they may would impose restrictions for a longer days delinquent before March 1, 2020, have obtained temporary relief, such as period of time, well beyond the critical or that had already been referred to forbearance, without understanding the period this fall identified by the Bureau, foreclosure before March 1, 2020. effects of the relief. Final § 1024.41(f)(3)

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targets these borrowers because it only first notice or filing in connection with heightened concerns that numerous applies to mortgage loans that became these mortgage loans. properties may have been abandoned more than 120 days delinquent after Statute of Limitations. At least two during the extended foreclosure March 1, 2020. Borrowers who became commenters urged the Bureau to adopt moratorium 120 and to ensure that more than 120 days delinquent before an additional exception that would servicers may make the first notice or that date almost certainly became permit a servicer to make the first notice filing without further delay when a delinquent for reasons unrelated to the or filing if the foreclosure statute of property has been abandoned. Thus, the pandemic, and they should have been limitations will expire during the period Bureau’s final temporary special given a meaningful opportunity under covered by the rule. One industry COVID–19 loss mitigation procedural then existing requirements to pursue commenter, for example, expressed safeguards will expressly permit a foreclosure avoidance options before the concern that any Federal prohibition on servicer to make the first notice or filing pandemic began. These borrowers are making the first notice or filing would before January 1, 2022, if the property more likely to have already discussed not toll the statute of limitations and is abandoned under the laws of the State foreclosure avoidance options with their would permanently prevent the servicer or municipality where the property is servicers. This approach is consistent from foreclosing on the property. The located. This is not intended to more with existing § 1024.41(f)(1)(i), which Bureau is persuaded that the final rule broadly define abandoned property or provides a 120-day period to ensure a should not prohibit a servicer from principal residence for purposes of borrower has a meaningful opportunity making the first notice or filing if the Regulation X. Further, a servicer to pursue foreclosure avoidance options. applicable foreclosure statute of continues to have flexibility to The Bureau chose March 1, 2020, to limitations will expire during the period determine that a property is not the help ensure that borrowers who became of time covered by the rule. borrower’s principal residence for eligible for foreclosure referral just prior Vacant and Abandoned Properties. A different reasons, including because it to the date on which the COVID–19 number of commenters, including used a different method to determine national emergency was declared, who industry and consumer advocates, urged that the property is abandoned or are less likely to have been given a the Bureau to clarify the extent to which because the State or municipality in meaningful opportunity to pursue any foreclosure restriction adopted in which the property is located does not foreclosure avoidance options during the final rule applies to abandoned define abandoned property. However, if the first 120 days of their delinquency, properties, vacant properties, a servicer incorrectly applies State or are also given procedural safeguards unoccupied properties, and properties municipal law and makes the first provided by the final rule. with trespassers or squatters. Several notice or filing on a property that is not urged the Bureau to specifically exempt abandoned under the laws of the State The Bureau believes that requiring these properties from any foreclosure servicers to determine the cause of the or municipality in which the property is restriction that the Bureau adopts and located, the servicer will have failed to delinquency would add complexity asked the Bureau to define these terms during a period when servicer capacity satisfy the procedural safeguard in or otherwise provide guidance on how § 1024.41(f)(3)(ii)(B) and may have may already be strained. Limiting the to determine that a property is the rule to permit servicers to proceed with violated Regulation X, as well as other borrower’s principal residence. applicable law. foreclosure referral for borrowers with Commenters explained that the lack of This final rule does not address other serious delinquencies before the clarity around this issue could prevent issues raised in the comments, such as pandemic without applying the servicers from making the first notice or what actions the servicer may take when temporary special COVID–19 loss filing even though the borrowers likely a property is vacant or occupied by mitigation procedural safeguards for no longer have any interest in retaining squatters or trespassers. The Bureau those borrowers should generally the property and the condition of the considers these issues beyond the scope achieve the same goal while placing less property could negatively affect of this rulemaking, which was not strain on servicers because they already surrounding properties and undertaken to clarify the scope of track the delinquency date for every communities. However, at least one actions servicers may take to address loan. commenter urged caution, expressing such a vacant or occupied property Foreclosure Restarts. Several concern that servicers may incorrectly under the Regulation X servicing commenters, including law firms, trade conclude that a property is vacant or provisions. Servicers should determine associations, and a government abandoned, which is a particular whether the property is the borrower’s commenter, asked the Bureau to clarify concern during the pandemic because principal residence in those that the special pre-foreclosure review borrowers or their family members may circumstances consistent with existing period does not apply to loans that have have spent significant time away from requirements. already been referred to foreclosure, their properties. Commenters offered Definition of First Notice or Filing. A regardless of whether the foreclosure several specific solutions, including few commenters, including industry, must be ‘‘restarted.’’ ‘‘Restarts’’ should proposed definitions of abandoned trade associations and consumer not be an issue under the final rule property. advocates, asked the Bureau to clarify because the scope of the new temporary The Bureau appreciates these whether sending certain State-mandated special COVID–19 loss mitigation concerns and has considered similar disclosures to borrowers, such as procedural safeguards is limited to issues in prior rulemakings.119 The notices that are commonly called mortgage loan obligations that became Bureau declines to establish general more than 120 days delinquent after definitions that would apply broadly to 120 Commenters did not provide data on this March 1, 2020. Shortly thereafter, issue. The proposed rule noted that, of the homes Regulation X in this rulemaking. in the foreclosure process, only approximately 3.8 beginning on March 18, 2020, a However, the Bureau concludes that percent are currently abandoned. Even if the foreclosure moratorium was imposed on additional clarity for purposes of this number of abandoned properties in the foreclosure most mortgages that prohibited certain rulemaking is important to address process is small compared to the total volume of foreclosure activities, including making properties in foreclosure, the Bureau appreciates that the number of abandoned properties may have the first notice or filing. Thus, the 119 78 FR 60381, 60406–07 (Oct. 1, 2013); 81 FR grown, and that clarity is needed for purposes of servicer is unlikely to have made the 72160, 72913, 72915 (Oct. 19, 2016). this rulemaking.

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‘‘breach notices,’’ would be considered effective date of the rule or on or after The Bureau received numerous making the first notice or filing and thus January 1, 2022. comments on proposed § 1024.41(f)(3), prohibited during the proposed special Small servicers. Like the proposal, discussed above in the section-by- pre-foreclosure review period. These final § 1024.41(f)(3) does not apply to section analysis of § 1024.41(f)(3). For commenters asserted that these State- small servicers. This is because small the reasons discussed in the section-by- mandated disclosures have proven to be servicers are exempt from the section analysis of § 1024.41(f)(3), the an effective tool to encourage borrowers requirements in § 1024.41, except with Bureau is not finalizing proposed to seek foreclosure alternatives. The respect to § 1024.41(f)(1).121 The final § 1024.41(f)(3), and is, instead, adopting Bureau does not believe additional rule’s temporary procedural safeguards new § 1024.41(f)(3) to establish new clarity is needed to address this issue are in § 1024.41(f)(3) and not temporary special COVID–19 loss because current comment 41(f)–1 § 1024.41(f)(1). mitigation procedural safeguards. provides guidance on what documents Record retention. The Bureau is also Final § 1024.41(f)(3)(i) provides that, are considered the first notice or filing adding new comment 41(f)(3)–1 to to give a borrower a meaningful for purposes of § 1024.41(f). As noted in clarify record retention requirements for opportunity to pursue loss mitigation that comment, whether a document is § 1024.41(f)(3). It provides that, as options, a servicer must ensure that one considered the first notice or filing is required by § 1024.38(c)(1), a servicer of the procedural safeguards described determined on the basis of foreclosure shall maintain records that document in § 1024.41(f)(3)(ii) has been met before procedure under the applicable State actions taken with respect to a making the first notice or filing required by applicable law for any judicial or law. Thus, certain State-mandated borrower’s mortgage loan account until non-judicial foreclosure process because documents might be considered the first one year after the date a mortgage loan of a delinquency under paragraph notice or filing and some might not. To is discharged or servicing of a mortgage (f)(1)(i) if: (A) The borrower’s mortgage the extent State-mandated documents, loan is transferred by the servicer to a loan obligation became more than 120 such as breach notices or acceleration transferee servicer. It clarifies that, if the days delinquent on or after March 1, notices are not the first notice or filing, servicer makes the first notice or filing 2020; and (B) the applicable statute of nothing in this rule prevents servicers required by applicable law for any limitations will expire on or after from sending them. judicial or non-judicial foreclosure January 1, 2022. Both of these elements process before January 1, 2022, these Final Rule must be met, and § 1024.41(f)(3) must be records must include evidence in effect prior to the sunset date, for the For the reasons stated herein, and demonstrating compliance with procedural safeguards to be applicable. after considering all of the comments, § 1024.41(f)(3), including, if applicable, See the section-by-section analysis of the Bureau is not finalizing the evidence that the servicer satisfied one § 1024.41(f)(3)(iii) for discussion of proposed special pre-foreclosure review of the procedural safeguard when § 1024.41(f)(3) will be in effect. period as proposed and is instead requirements described in As discussed more fully in part II, finalizing temporary special COVID–19 § 1024.41(3)(ii). It also provides most borrowers with loans in loss mitigation procedural safeguards at examples of information and documents forbearance programs as of the § 1024.41(f)(3). Final § 1024.41(f)(3) required to be retained, depending on publication of this final rule are requires a servicer to give a borrower a the procedural safeguard on which the expected to reach the maximum term of meaningful opportunity to pursue loss servicer relies to make the first notice or 18 months in forbearance available for mitigation options by ensuring that one filing while § 1024.41(f)(3) is in effect. federally backed mortgage loans of three procedural safeguards has been The temporary procedural safeguards between September and November of met before making the first notice or provisions consist of three parts in this year and will likely be required to filing because of a delinquency: (1) The § 1024.41(f)(3)(i) through (iii) described exit their forbearance program at that borrower submitted a completed loss more fully below. Section time. These expirations could trigger a mitigation application and 1024.41(f)(3)(i) describes the general sudden and sharp increase in loss § 1024.41(f)(2) permits the servicer to rule requiring a servicer to ensure that mitigation-related default servicing make the first notice or filing; (2) the one of the procedural safeguards is met activity at around the same time. Many property securing the mortgage loan is for certain loans before making a of these borrowers may become abandoned under State or municipal foreclosure referral and the scope of its immediately eligible for foreclosure law; or (3) the servicer has conducted coverage. Section 1024.41(f)(3)(ii) referral even though, in light of unique specified outreach and the borrower is describes when a procedural safeguard circumstances created by the pandemic, unresponsive. The temporary is met for purposes of § 1024.41(f)(3)(i). they have not yet pursued or been procedural safeguards are applicable Section 1024.41(f)(3)(iii) provides a reviewed for available loss mitigation only if (1) the borrower’s mortgage loan sunset date after which the temporary options. Thus, without regulatory obligation became more than 120 days special COVID–19 loss mitigation intervention, servicers may make the delinquent on or after March 1, 2020 procedural safeguards no longer apply. first notice or filing before those and (2) the statute of limitations borrowers have had a meaningful 41(f)(3)(i) In General applicable to the foreclosure action opportunity to pursue foreclosure being taken in the laws of the State As noted above, the Bureau proposed avoidance options. As explained in where the property securing the to add new § 1024.41(f)(3) that would more detail in the proposed rule and in mortgage loan is located expires on or have imposed a special pre-foreclosure part II above, this could occur because after January 1, 2022. In addition, the review period on certain mortgage loans the expected surge in borrowers seeking temporary procedural safeguards will and would have provided that a servicer loss mitigation assistance later this year expire on January 1, 2022, meaning that shall not rely on paragraph (f)(1)(i) to could trigger servicer errors that lead to the procedural safeguards are not make the first notice or filing until after improper foreclosure referrals. This also applicable if a servicer makes the of the December 31, 2021. could occur because borrowers who first notice or filing required by may have been confused about applicable law for any judicial or non- 121 2013 RESPA Servicing Final Rule, supra note protections available, or who may have judicial foreclosure process before the 11, at 10843. been unable to seek loss mitigation

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options because of issues related to the analysis of § 1024.41(f)(3)(ii) through first notice or filing when borrowers are COVID–19 pandemic, may not have 1024.41(f)(3)(ii)(C), that balance the goal unresponsive is intended to incentivize adequate time before foreclosure referral of ensuring that borrowers have a servicers to engage in outreach, which to understand their options and pursue meaningful opportunity to pursue should also increase the likelihood that them. If borrowers do not have foreclosure avoidance options during borrowers will to respond to servicer sufficient time before foreclosure the expected surge of borrowers seeking outreach, and work towards a referral to pursue foreclosure avoidance loss mitigation assistance later this year, foreclosure alternative, while allowing options, borrowers could suffer harms while also recognizing that there may be the servicer to proceed with foreclosure similar to the harms that the 2013 circumstances where enhanced referral if the borrower does not RESPA Servicing Final Rule originally procedural safeguards are not respond. As another example, sought to address in § 1024.41(f) and appropriate and unlikely to accomplish specifying that servicers can proceed that cannot be adequately remediated RESPA’s purpose of facilitating review with foreclosure when a servicer has after the fact including, among other for foreclosure avoidance options. These already considered a borrower for loss things, harms from dual tracking, such procedural safeguards are modeled on mitigation and determined that the as unwarranted or unnecessary costs the stated goals of the proposed special borrower does not qualify for a and fees. pre-foreclosure review period and the foreclosure alternative should encourage Although current Regulation X, State various alternatives to that proposal on the servicer to promptly seek loss laws, and investor requirements already which the Bureau sought comment. mitigation applications and evaluate impose obligations on servicers that However, instead of prohibiting any them. Servicers could have been help to ensure borrowers have a foreclosure referrals until a date certain discouraged from engaging in outreach meaningful opportunity to pursue without exceptions, the final rule and borrowers may have been foreclosure avoidance options, the imposes new temporary special COVID– disincentivized from responding until Bureau believes that these existing 19 loss mitigation procedural safeguards foreclosure referral was imminent if the requirements are likely to be insufficient that apply only to certain mortgage Bureau had instead finalized an as a result of this unprecedented loans and that generally must be intervention that delayed foreclosure COVID–19 emergency when a surge of satisfied before the servicer makes the referrals without any exceptions borrowers who were in extended first notice or filing until the sunset date because they may have viewed earlier forbearance programs and may have of the provision. The Bureau believes efforts as less likely to be productive. been experiencing unprecedented these temporary procedural safeguards Further, the Bureau believes that final hardship due to the COVID–19 will provide sufficient incentives to § 1024.41(f)(3) will protect a borrower emergency, are likely to be seeking loss encourage both: (1) Servicers to from servicer errors and delays that may mitigation assistance between diligently communicate with borrowers occur during the surge this fall by September 1 and December 31, 2021. about loss mitigation and promptly ensuring that the servicer cannot make For the reasons discussed herein, evaluate any complete loss mitigation the first notice or filing while this including in the section-by-section applications; and (2) borrowers to provision is in effect if a temporary analysis of § 1024.41(f)(3), the Bureau communicate with their servicers. special COVID–19 loss mitigation concludes that the proposed special pre- procedural safeguard is not met. For foreclosure review period would not The Bureau is adopting the temporary example, if the borrower engages with have sufficiently addressed these special COVID–19 loss mitigation the servicer but is unable to submit a concerns. The proposed special pre- procedural safeguards because the complete loss mitigation application foreclosure review period would have Bureau believes that many borrowers because of a servicer error or delay, the imposed a restriction on making the first who may become eligible for foreclosure procedural safeguards would provide notice or filing, regardless of the referral this fall may be able to avoid the borrower with additional time to borrower’s specific situation, and it foreclosure if they are given a submit a complete loss mitigation would not have provided any incentives meaningful opportunity to pursue application because it would for borrowers and servicers to work foreclosure alternatives, but they may temporarily prevent the servicer from together to determine if a foreclosure not be given that opportunity without making the first notice or filing while alternative is available before its regulatory intervention that encourages, this provision is in effect. restrictions ended. As a result, the and allows time for, servicer outreach The temporary special COVID–19 loss proposed special pre-foreclosure review and borrower response. The Bureau is mitigation procedural safeguards will period could have prevented servicers concerned, for example, that a surge in generally prevent servicers from making from making the first notice or filing in loss mitigation applications could make the first notice or filing while this circumstances where doing so could it more difficult for servicers to engage provision is in effect if the borrower and have helped the borrower and where in outreach or for borrowers to contact servicer are in communication, but the further delays could have potentially or work with their servicers, and in borrower has not exhausted their loss caused harm. Without exceptions to the some instances, that the wave could mitigation options. The Bureau believes proposed delay in when the first notice result in servicer errors. As described in that providing this additional time in or filing could be made, the proposed more detail below, the final rule is cases where the servicer is evaluating approach could have caused borrowers intended to balance the goals of the borrower for loss mitigation or is in and servicers to delay communications, encouraging communication between communication with the borrower is potentially undermining the Bureau’s the servicer and borrower to help ensure important to protect borrowers from objective to ensure borrowers receive a the borrower has a meaningful errors that may occur due to capacity meaningful opportunity to pursue opportunity to pursue foreclosure issues. foreclosure avoidance options. avoidance options, while also allowing To address these concerns, the Bureau the servicer to make the first notice or 41(f)(3)(i)(A) is now finalizing temporary special filing where additional time before Final § 1024.41(f)(3)(i) provides that, COVID–19 loss mitigation procedural foreclosure referral is unlikely to to give a borrower a meaningful safeguards, as described in more detail achieve that goal. For example, opportunity to pursue loss mitigation below and in the section-by-section specifying that servicers can make the options, a servicer must ensure that one

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of the procedural safeguards described noted above, the Bureau believes these special COVID–19 loss mitigation in § 1024.41(f)(3)(ii) has been met before procedural safeguards will allow a procedural safeguards expire. making the first notice or filing required servicer to make the first notice or filing The Bureau also believes that neither by applicable law for any judicial or where the borrower is likely to have the borrower nor the servicer would non-judicial foreclosure process because already had a meaningful opportunity to benefit if the servicer were prohibited of a delinquency under paragraph pursue foreclosure avoidance options or from making the first notice or filing in (f)(1)(i) if two elements are met. Final would otherwise not benefit from connection with these loans. The § 1024.41(f)(3)(i)(A) sets forth the first of additional time before foreclosure servicer will have determined that the the two elements: That the borrower’s referral, which should also encourage borrower does not qualify for a mortgage loan obligation became more borrowers and servicers to work foreclosure avoidance option, and the than 120 days delinquent on or after together to pursue foreclosure avoidance borrower will have submitted all March 1, 2020. This means that the options before the servicer makes the required documentation to be temporary special COVID–19 loss first notice or filing. considered for foreclosure avoidance mitigation procedural safeguards do not options and exhausted all appeals to apply to mortgage loans that became 41(f)(3)(ii)(A) Completed Loss overturn the servicer’s decision. more than 120 days delinquent before Mitigation Application Evaluated Additional protections are not needed March 1, 2020, and a servicer may make Final § 1024.41(f)(3)(ii)(A) describes because these borrowers will have the first notice or filing in connection the first of the specified procedural already been considered for foreclosure with those mortgage loans without safeguards that would allow the servicer avoidance options. While it is possible ensuring a procedural safeguard has to make the first notice or filing while that the borrower’s financial condition been met, as long as all other applicable the procedural safeguards are in effect. could later improve, the Bureau requirements are met. Specifically, § 1024.41(f)(3)(ii)(A) concludes that prohibiting a servicer As discussed in the section-by-section provides that the servicer has met a from making the first notice or filing in analysis of § 1024.41(f)(3) above, the procedural safeguard if the borrower these circumstances would at best help Bureau believes that it is appropriate to submitted a complete loss mitigation a very small number of borrowers while apply the temporary procedural application, has remained delinquent at adding substantial costs to servicers and safeguards to borrowers who became all times since submitting the potentially harming the vast majority of severely delinquent near the beginning application, and § 1024.41(f)(2) permits affected borrowers by allowing their of the COVID–19 pandemic or after it the servicer to make the first notice or delinquencies to continue to grow. As because those borrowers are most likely filing required for foreclosure. Section noted in the proposed rule, the Bureau to need additional time before 1024.41(f)(2) prohibits a servicer from understands that many owners or foreclosure referral to have a meaningful making the first notice or filing if a assignees of mortgage loans require opportunity to pursue foreclosure borrower submits a complete loss servicers to consider material changes in avoidance options. Although borrowers mitigation application during the pre- financial circumstances in connection who became more than 120 days foreclosure review period in with evaluations of borrowers for loss delinquent before that date may need § 1024.41(f)(1) or before the servicer has mitigation options. Servicer policies and significant help to avoid foreclosure, made the first notice or filing unless (1) procedures must be designed to 122 they are less likely to benefit from the servicer has sent the borrower a implement those requirements. Thus, procedural safeguards for the reasons notice required by § 1024.41(c)(1)(ii) the servicer would be required to re- discussed above. stating that the borrower is not eligible evaluate the borrower’s eligibility for 41(f)(3)(i)(B) for any loss mitigation option and the loss mitigation under those appeal process in § 1024.41(h) is not requirements if the borrower’s financial The other element under final situation later changes. § 1024.41(f)(3)(i) provides that the applicable, the borrower has not procedural safeguards are only requested an appeal within the 41(f)(3)(ii)(B) Abandoned Property applicable if the statute of limitations applicable time period for requesting an Final § 1024.41(f)(3)(ii)(B) describes applicable to the foreclosure action appeal, or the borrower’s appeal has the second specified condition that being taken in the laws of the State been denied; (2) the borrower rejects all would allow the servicer to make the where the property securing the loss mitigation options offered by the first notice or filing while procedural mortgage loan is located expires on or servicer; or (3) the borrower fails to safeguards are in effect. Specifically, after January 1, 2022. In other words, perform under an agreement on a loss § 1024.41(f)(3)(ii)(B) provides that the final § 1024.41(f)(3) does not prohibit a mitigation option. servicer may make the first notice or servicer from making the first notice or As explained above, the Bureau filing if the property is abandoned filing if the applicable statute of believes that this provision will provide according to the laws of the State or limitations will expire before the appropriate incentives for servicers to municipality where the property is temporary special COVID–19 loss engage in meaningful outreach to solicit located when the servicer makes the mitigation procedural safeguards expire. a completed loss mitigation application first notice or filing required by As discussed in the section-by-section from the borrower and to promptly applicable law for any judicial or non- analysis of § 1024.41(f)(3) above, the evaluate the application, which should judicial foreclosure process. As Bureau is adopting this element to in turn increase the likelihood that the discussed in response to comments ensure that the procedural safeguards do borrower actively engages their servicer received in the section-by-section not permanently prevent a servicer from to discuss foreclosure alternatives. discussion of § 1024.41(f)(3) above, the enforcing their rights under the security Unlike the proposed approach, final Bureau believes that borrowers and instrument and note. § 1024.41(f)(3) allows servicers to make servicers are unlikely to benefit, and the first notice or filing without delay in 41(f)(3)(ii) Procedural Safeguards could be harmed, if servicers are these circumstances, but otherwise prohibited from making the first notice Final § 1024.41(f)(3)(ii) provides that a generally prohibits the servicer from procedural safeguard is met if one of doing so unless another procedural 122 2013 RESPA Servicing Final Rule, supra note three specified conditions is met. As safeguard is met or until the temporary 11, at 10836.

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or filing in connection with abandoned makes the first notice or filing required additional guardrails that are intended properties. by applicable law for any judicial or to ensure that the servicer has engaged Final § 1024.41(f)(3), like the rest of non-judicial foreclosure process and all in sufficient outreach when the this final rule, only applies to mortgage of the following conditions are met: (1) borrower is most likely to understand loans that are secured by the borrower’s The servicer made good faith efforts to and respond. In particular, this principal residence. While the Bureau establish live contact with the borrower provision requires that four elements be has previously stated that an abandoned after each payment due date, as required met before a servicer can make the first property may no longer be a borrower’s by § 1024.39(a), during the 90-day notice or filing under this provision. principal residence, and thus § 1024.41 period before the servicer makes the First, new § 1024.41(f)(3)(ii)(C)(1) generally would not apply,123 the first notice or filing required by clarifies that the servicer must make Bureau appreciates that servicers have applicable law for any judicial or non- good faith efforts to establish live difficulty in making that determination, judicial foreclosure process; (2) the contact with the borrower after each which could pose special challenges servicer sent the written notice required payment due date, as required by because of the circumstances presented by section 1024.39(b) at least 10 days § 1024.39(a), during the 90-day period by the COVID–19 pandemic emergency. and no more than 45 days before the before the servicer makes the first notice Thus, the Bureau is finalizing servicer makes the first notice or filing or filing required by applicable law for § 1024.41(f)(3)(ii)(B) to facilitate required by applicable law for any any judicial or non-judicial foreclosure servicer’s processes of determining judicial or non-judicial foreclosure process. This requirement is intended to whether a property is abandoned during process; (3) the servicer sent all notices ensure that the servicer has engaged in the surge by expressly permitting a required by this section, as applicable, sufficient outreach before determining servicer to make the first notice or filing during the 90-day period before the that the borrower is unresponsive. A before January 1, 2022, if the property servicer makes the first notice or filing servicer can satisfy this provision based is abandoned under the laws of the State required by applicable law for any on activities that occurred before the or municipality where the property is judicial or non-judicial foreclosure effective date of this final rule. located. process; and (4) the borrower’s Second, new § 1024.41(f)(3)(ii)(C)(2) The Bureau notes that this provision forbearance program, if applicable, requires the servicer to send the written is specific to the temporary special ended at least 30 days before the notice required by § 1024.39(b) at least COVID–19 loss mitigation procedural servicer makes the first notice or filing 10 days and no more than 45 days safeguards provision and is not required by applicable law for any before the servicer makes the first notice intended to more broadly define what is judicial or non-judicial foreclosure or filing. Servicers are already required considered an abandoned property or process. to provide the notice required by This provision is intended to allow a principal residence for purposes of the § 1024.39(b). This provision adds new servicer to make the first notice or filing rest of Regulation X. Further, a servicer timing requirements that are intended to if the servicer has reasonably attempted continues to have flexibility under ensure that the servicer has engaged in Regulation X to determine that a to contact the borrower and the borrower has been unresponsive. This sufficient outreach during the most property is not the borrower’s principal critical period before making the first residence for different reasons, provision is modeled after the loss mitigation requirements in Regulation X notice or filing on the basis that the including because it used a different borrower is unresponsive. The Bureau method to determine that the property to ease compliance burdens. The Bureau solicited comment on defining an believes that receipt of this notice is abandoned because the State and during this period will decrease the municipality in which the property is unresponsive borrower based on Home Affordable Modification Program likelihood that the borrower has not located does not define abandoned responded to servicer outreach because property. However, if a servicer requirements, and commenters suggested several alternative approaches they do not understand the importance incorrectly applies State or municipal of communicating with their servicer. law and makes the first notice or filing to defining unresponsive borrower. However, the Bureau is not finalizing Third, new § 1024.41(f)(3)(ii)(C)(3) on a property that is not abandoned requires the servicer to send all notices under the laws of the State or any of those options due to concerns that servicers would not have sufficient required by § 1024.41, as applicable, municipality in which the property is during the 90-day period before the located, the servicer will have failed to time to adopt new procedures that would satisfy those alternatives or be servicer makes the first notice or filing satisfy the procedural safeguard in required by applicable law for any § 1024.41(f)(3)(ii)(B) and may have able to track compliance with these requirements. The Bureau is concerned judicial or non-judicial foreclosure violated Regulation X, as well as other process. Applicable notices may applicable law. that servicers would be required to make significant changes to their include, for example, the notice 41(f)(3)(ii)(C) Unresponsive Borrower systems and procedures to meet the required by § 1024.41(c)(2)(iii). The Bureau notes that this provision, as well Final § 1024.41(f)(3)(ii)(C) describes standard, which could reduce the as § 1024.41(f)(3)(ii)(C)(1) and (2), the third specified procedural safeguard likelihood that a servicer would take require strict compliance with all that would allow the servicer to make advantage of it and may further applicable provisions of § 1024.41. This the first notice or filing while overwhelm servicer capacity during this includes all relevant aspects of those § 1024.41(f)(3) is in effect. Specifically, critical time. The Bureau believes it is provisions, including the timing § 1024.41(f)(3)(ii)(C) provides that the important to design this procedure so requirements. Thus, a servicer that has servicer may make the first notice or that servicers can apply it broadly not met existing timing requirements filing if the servicer did not receive any because, as commenters highlighted, the under Regulation X during the relevant communications from the borrower for first notice or filing may serve to prompt period cannot rely on at least 90 days before the servicer borrowers who have been unresponsive to contact their servicers, and State § 1024.41(f)(3)(ii)(C) to make the first notice or filing while the procedural 123 86 FR 18840, 18867 (Apr. 9, 2021). See also programs can help to do the same. 78 FR 60381, 60406–07 (Oct. 1, 2013); 81 FR 72160, This final rule builds on current safeguards are in effect, notwithstanding 72913, 72915 (Oct. 19, 2016). Regulation X requirements and adds the existing Joint Statement.

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Fourth, a servicer is only permitted to determine if a person that claims to be in borrowers exiting forbearance and the make the first notice or filing under new an agent of a borrower has authority related risks of servicer error and § 1024.41(f)(3)(ii)(C)(4) if the borrower’s from the borrower to act on the borrower delay or confusion. forbearance program, if applicable, borrower’s behalf, for example, by VI. Effective Date ended at least 30 days before the requiring that a person that claims to be servicer makes the first notice or filing. an agent of the borrower provide The Bureau proposed that any final Similar to § 1024.41(f)(3)(ii)(C)(1), this documentation from the borrower rule relating to the proposed rule take requirement is intended to address stating that the purported agent is acting effect on or before August 31, 2021, and concerns that a borrower would ignore on the borrower’s behalf. Upon receipt at least 30 days, or if it is a major rule, a servicer’s outreach efforts while the of such documentation, the comment at least 60 days, after publication of a borrower is in a forbearance program explains that the servicer shall treat the final rule in the Federal Register. The because the servicer and borrower have communication as having been Bureau sought comment on whether already agreed that the borrower will submitted by the borrower. there was a day of the week or time of not make payments until a later date. This comment clarifies that a the month that would best facilitate the The Bureau is concerned that a borrower who is attempting to implementation of the proposed borrower may not have a meaningful communicate with their servicer is changes. opportunity to pursue foreclosure afforded the protections of the The Bureau did not receive comments avoidance options if a servicer were procedural safeguards, regardless of the about a specific day of the week or time allowed to deem a borrower substance of the communication from of the month may best facilitate unresponsive because the borrower did the borrower. The Bureau will closely implementation of the proposed not communicate with the servicer monitor consumer complaints and changes. The Bureau did receive a few several months before the borrower’s examine servicers to ensure that a general comments on the effective date. forbearance program was scheduled to servicer’s procedures have not created These comments generally urged the end. obstacles that frustrate a borrower’s Bureau to make the final rule effective The Bureau believes that all of these ability to engage with the servicer or sooner than August 31, 2021, so that as provisions under § 1024.41(f)(3)(ii)(C) that make borrowers appear many borrowers as possible could be will ensure that the servicer’s outreach unresponsive even though they were benefit from the final rule. and the borrower’s failure to respond attempting to contact the servicer (for As discussed more fully in part II, occurs during a period of time when the example, if servicer phone lines have above, many of the protections available borrower should expect to be in contact unreasonably long hold times). to homeowners as a result of measures with the servicer. to protect them from foreclosure during As noted above, § 1024.41(f)(3)(ii)(C) 41(f)(3)(iii) Sunset Date the COVID–19 emergency are ending in provides that the servicer may make the Final § 1024.41(f)(3)(iii) provides that the coming weeks and months. The first notice or filing if the servicer did paragraph (f)(3) does not apply if a Bureau is keenly aware of the need for not receive any communications from servicer makes the first notice or filing quick action to protect vulnerable the borrower within a specified period required by applicable law for any borrowers during the unique of time. The Bureau is adopting new judicial or non-judicial foreclosure circumstances presented by the COVID– comment 41(f)(3)(ii)(C)–1 to help clarify process on or after January 1, 2022. 19 emergency. However, the Office of what is considered a communication Because the procedural safeguards Information and Regulatory Affairs has from the borrower. Specifically, provisions become effective on August designated this rule as a ‘‘major rule’’ comment 41(f)(3)(ii)(C)–1 provides that, 31, 2021, the provisions also would not for purposes of the Congressional for purposes of § 1024.41(f)(3)(ii)(C), a be applicable if the servicer makes the Review Act (CRA).124 The CRA requires servicer has not received a first notice or filing before August 31, that the effective date of a major rule communication from the borrower if the 2021. As discussed above, the Bureau must be at least 60 days after servicer has not received any written or believes that a significant number of publication in the Federal Register.125 electronic communication from the borrowers are likely to be seeking loss The Bureau anticipates that August 31, borrower about the mortgage loan mitigation assistance during this period 2021 will be at least 60 days from obligation, has not received a telephone from August 31, 2021 through December Federal Register publication of this call from the borrower about the 31, 2022. This is the period of time rule. The effective date of this final rule mortgage loan obligation, has not when, in light of the anticipated surge, will therefore be August 31, 2021. successfully established live contact there is a heightened risk of servicer While servicers will not have to with the borrower about the mortgage error, and borrowers may face more comply with this rule until the effective loan obligation, and has not received a difficulty in contacting and date, servicers may voluntarily begin payment on the mortgage loan communicating with their servicers to engaging in activity required by this obligation. A servicer has received a meaningfully pursue foreclosure final rule before the final rule’s effective communication from the borrower if, for alternatives. This is also the period date. In certain circumstances, such example, the borrower discusses loss when existing requirements may be voluntary activity can establish mitigation options with the servicer, insufficient to ensure borrowers have a compliance with the rule after its even if the borrower does not submit a meaningful opportunity to pursue effective date. For example, if the loss mitigation application or agree to a foreclosure alternatives and additional borrower’s forbearance is scheduled to loss mitigation option offered by the requirements could help ensure that the end on September 15th, and a servicer servicer. potentially unprecedented provides the additional information The Bureau is also adopting new circumstances do not result in borrower required by § 1024.39(e)(2) during a live comment 41(f)(3)(ii)(C)–2 to clarify that harm. The Bureau believes that the contact that occurs before the effective a servicer has received a communication sunset date will ensure that certain date, but fewer than 45 days before the from the borrower if the communication procedural safeguards are in place forbearance program is scheduled to is from an agent of the borrower. The during the temporary period when comment explains that a servicer may borrowers may face the greatest 124 5 U.S.C. 801 et seq. undertake reasonable procedures to potential harm because of the increase 125 5 U.S.C. 801(a)(3).

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expire, the servicer need not provide the moratoriums and forbearances end.128 insight into these benefits, costs, and information required by § 1024.39(e)(2) The Bulletin articulates the Bureau impacts. again after the effective date. Similarly, intends to consider a servicer’s overall certain conduct taking place before the effectiveness in communicating clearly C. Baseline for Analysis effective date of this rule can satisfy the with consumers, effectively managing In evaluating the benefits, costs, and procedural safeguards described in borrower requests for assistance, impacts of this final rule, the Bureau § 1024.41(f)(3). For a more detailed promoting loss mitigation, and considers the impacts of the final rule discussion of the required conduct that ultimately reducing avoidable against a baseline in which the Bureau can establish compliance, whether foreclosures and foreclosure-related takes no action. This baseline includes completed before or after the effective costs. It reiterates that the Bureau existing regulations and the current intends to hold mortgage servicers date of the final rule, please refer to the state of the market. Further, the baseline accountable for complying with section-by-section analyses of includes, but is not limited to, the Regulation X. §§ 1024.39 and 1024.41(f)(3). CARES Act and any new or existing While the Bureau declines to adopt an VII. Dodd-Frank Act Section 1022(b) forbearances granted under the CARES earlier effective date, for the reasons Analysis Act and substantially similar discussed above, the Bureau does not programs.130 intend to use its limited resources to A. Overview The baseline reflects the response and pursue supervisory or enforcement In developing this final rule, the actions taken by the Bureau and other action against any mortgage servicer for Bureau has considered the potential offering a borrower a streamlined loan benefits, costs, and impacts as required government agencies and industry in modification that satisfies the criteria in by section 1022(b)(2)(A) of the Dodd- response to the COVID–19 pandemic § 1024.41(c)(2)(vi)(A) based on the Frank Act.129 In developing this final and related economic crisis, which may evaluation of an incomplete loss rule, the Bureau has consulted or change. Protections for mortgage mitigation application before the offered to consult with the appropriate borrowers, such as forbearance effective date of this final rule.126 prudential regulators and other Federal programs, foreclosure moratoria, and In addition, some commenters agencies, including regarding other consumer protections and general expressed concern that servicers may consistency with any prudential, guidance, have evolved since the initiate the foreclosure process between market, or systemic objectives CARES Act was signed into law on when foreclosure moratoria are set to administered by such agencies, as March 27, 2020. It is reasonable to expire and the August 31, 2021 effective required by section 1022(b)(2)(B) of the believe that the state of protections for date of this final rule. The Bureau is Dodd-Frank Act. mortgage borrowers will continue to aware of the concern, but is not evolve. For purposes of evaluating the adopting an earlier effective date for the B. Data Limitations and Quantification potential benefits, costs, and impacts of reasons discussed above. In addition, as of Benefits, Costs, and Impacts this final rule, the focus is on a baseline most borrowers in forbearance programs The discussion below relies on that reflects the current and existing receive protection from foreclosure information that the Bureau has state of protections for mortgage during the forbearance program,127 an obtained from industry, other regulatory borrowers. Where possible, the analysis August 31, 2021 effective date of this agencies, and publicly available sources, includes a discussion of how estimates final rule ensures that most borrowers including reports published by the might change in light of changes in the exiting forbearance in September, when Bureau. These sources form the basis for state of protections for mortgage the Bureau expects a very high volume the Bureau’s consideration of the likely borrowers. of forbearance exits, are not at risk of impacts of the final rule. The Bureau As further discussed below, under the foreclosure immediately when their provides estimates, to the extent baseline, many mortgage borrowers who forbearance program ends. The Bureau possible, of the potential benefits and are currently protected by foreclosure recently released a Compliance Bulletin costs to consumers and covered persons moratoria and forbearance programs and Policy Guidance (Bulletin) of the final rule given available data. will be vulnerable to foreclosure when announcing the Bureau’s supervision However, as discussed further below, those programs begin to expire later this and enforcement priorities regarding the data with which to quantify the year. Bureau analysis using data from housing insecurity in light of potential costs, benefits, and impacts of the National Mortgage Database showed heightened risks to consumers needing the final rule are generally limited. that Black and Hispanic borrowers made loss mitigation assistance in the coming In light of these data limitations, the up a significantly larger share of months as the COVID–19 foreclosure analysis below generally includes a borrowers that were in forbearance (33 qualitative discussion of the benefits, percent) or delinquent (27 percent) as 126 costs, and impacts of the final rule. This statement is intended to provide reported through March 2021.131 information regarding the Bureau’s general plans to General economic principles and the Whereas, Black and Hispanic borrowers exercise its supervisory and enforcement discretion Bureau’s expertise in consumer made up 18 percent of all mortgage for institutions under its jurisdiction and does not financial markets, together with the impose any legal requirements on external parties, borrowers and 16 percent of borrowers limited data that are available, provide nor does it create or confer any substantive rights that were current. Forbearance and on external parties that could be enforceable in any delinquency were also significantly administrative or civil proceeding. In addition, this 128 86 FR 17897 (Apr. 7, 2021). statement is not intended to be rule, regulation, or 129 Specifically, sec. 1022(b)(2)(A) of the Dodd- more likely in majority-minority census interpretation for purposes of RESPA section 18(b) Frank Act requires the Bureau to consider the tracts and in tracts with lower relative (12 U.S.C. 2617(b)). potential benefits and costs of the regulation to income. 127 See, e.g., 12 CFR 1024.41(c)(2)(iii) (prohibiting consumers and covered persons, including the a servicer from making the first notice or filing potential reduction of access by consumers to required by applicable law for any judicial or non- consumer financial products and services; the 130 The Bureau has discretion in any rulemaking judicial foreclosure process and certain other impact of rules on insured depository institutions to choose an appropriate scope of analysis with foreclosure activity if the borrower is performing and insured credit unions with less than $10 billion respect to potential benefits, costs, and impacts, and pursuant to the terms of a short-term payment in total assets as described in sec. 1026 of the Dodd- an appropriate baseline. forbearance program offered based on the Frank Act; and the impact on consumers in rural 131 See CFPB Mortgage Borrower Pandemic evaluation of an incomplete application). areas. Report, supra note 5.

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D. Potential Benefits and Costs to procedural safeguards would likely foreclosure risk for the large number of Consumers and Covered Persons apply.132 borrowers who are expected to exit This section discusses the benefits In the context of the COVID–19 forbearance between September and pandemic and related economic crisis, a and costs to consumers and covered December of 2021 and for whom the very large number of mortgage loans persons of (1) the temporary special special procedural safeguards would may be at risk of foreclosure. Generally, COVID–19 loss mitigation procedural apply. a servicer can initiate the foreclosure The primary benefit to consumers safeguards (§ 1024.41(f)(3)); (2) the new process once a borrower is more than from this provision arises from a exception to the complete application 120 days delinquent, as long as no other reduction in foreclosure and its requirement (§ 1024.41(c)(2)(vi)); and (3) limitations apply. In response to the associated costs. There are a number of the clarifications of the early current economic crisis, there are ways a borrower who is delinquent on intervention live contact and reasonable existing forbearance programs and their mortgage may resolve the diligence requirements (§§ 1024.39(a) foreclosure moratoria in place that delinquency without foreclosure. The and (e); 1024.41(b)(1)). prevent servicers from initiating the borrower may be able to prepay by 1. Temporary Special COVID–19 Loss foreclosure process even if the borrower either refinancing the loan or selling the Mitigation Procedural Safeguards is more than 120 days delinquent. As of property. The borrower may be able to late-June, Federal foreclosure moratoria become current without assistance from The amendments to Regulation X are set to expire on July 31, 2021. This the servicer (‘‘self-cure’’). Or, the establish temporary special COVID–19 means that some borrowers not in a borrower may be able to work with the loss mitigation procedural safeguards forbearance plan may be at heightened servicer to resolve the delinquency that apply from the effective date of the risk of referral to foreclosure soon after through a loan modification or other rule until on or after January 1, 2022. the foreclosure moratoria end if they do loss mitigation option. Resolving the The final rule provides that, to give a not resolve their delinquency or reach a delinquency in one of these ways, if borrower a meaningful opportunity to loss mitigation agreement with their possible, will generally be less costly to pursue loss mitigation options, a servicer. Among borrowers in a the borrower than foreclosure. Even servicer must ensure that one of three forbearance plan, a significant number after foreclosure is initiated, a borrower procedural safeguards has been met of borrowers reached 12 months in a may be able to avoid a foreclosure sale before making the first notice or filing forbearance program in February by resolving their delinquency in one of because of a delinquency: (1) The (160,000) and March (600,000) of these ways, although a foreclosure borrower submitted a completed loss 2021.133 If these borrowers remain in a action is likely to impose additional mitigation application and forbearance program for the maximum costs and may make some of these § 1024.41(f)(2) permits the servicer to amount of time (currently 18 months), resolutions harder to achieve. For make the first notice or filing; (2) the then the forbearance program will end example, a borrower may be less likely property securing the mortgage loan is in September 2021. Other borrowers to obtain an affordable loan abandoned under State or municipal who were part of the initial, large wave modification if the administrative costs law; or (3) the servicer has conducted of forbearances that began in April of foreclosure are added to the existing specified outreach and the borrower is through June of 2020 will see their 18- unpaid balance of the loan all else unresponsive. A mortgage loan is month forbearance period terminate in equal.135 By providing borrowers with subject to the temporary procedural October or November of 2021. These additional time before foreclosure can safeguards if (1) the borrower’s mortgage loans may be considered more than 120 be initiated, the proposed provision loan obligation became more than 120 days delinquent for purposes of would give borrowers a better days delinquent on or after March 1, Regulation X even if the borrower opportunity to avoid foreclosure 2020 and (2) the statute of limitations entered into a forbearance program, altogether. applicable to the foreclosure action allowing the servicer to initiate To quantify the benefit of the being taken in the laws of the State foreclosure proceedings for these provision from a reduction in where the property securing the borrowers as soon as the forbearance foreclosure sales, the Bureau would mortgage loan is located expires on or program ends in accordance with need to estimate (1) the average benefit after January 1, 2022. This restriction is existing regulations.134 The final rule to consumers, in dollar terms, of in addition to existing § 1024.41(f)(1)(i), will be effective on August 31, 2021. preventing a single foreclosure and (2) which prohibits a servicer from making Thus, the final rule should reduce the number of foreclosures that would the first notice or filing required by be prevented by the provision. Given applicable law until a borrower’s 132 The benefits and costs to consumers will data currently available to the Bureau mortgage loan obligation is more than decrease to the extent that additional protections for and information publicly accessible, a 120 days delinquent. The amendment delinquent borrowers are extended by the Federal reliable estimate of these figures is government or investors. For instance, if new does not apply to small servicers. protections were introduced that prevent difficult due to the significant Benefits and costs to consumers. The foreclosure from being initiated for federally backed uncertainty in economic conditions, provision would provide benefits and mortgages until after January 1, 2022, then the evolving state of government policies, costs to consumers by providing certain benefits of the provision for borrowers with and elevated levels of forbearance and federally backed mortgages would be reduced or borrowers additional time to allow for eliminated. Similarly, the costs of the provision to delinquency. Below, the Bureau meaningful review of loan modification servicers of these loans, as discussed in the outlines available evidence on the and other loss mitigation options to help ‘‘Benefits and costs to covered persons’’ for this ensure that those borrowers who can provision, below, would be reduced. The most 135 In addition, the Bureau has noted in the past recent available data from Black Knight indicate avoid foreclosure through loss that consumers may be confused if they receive that about 1.6 million of the 2.2 million loans in foreclosure communications while loss mitigation mitigation will have the opportunity to forbearance as of April 2021 are federally backed reviews are ongoing, and that such confusion do so. The primary benefits and costs to mortgage loans. The benefits and costs of the potentially may lead to failures by borrowers to consumers of this additional time for provision for remaining loans would likely be complete loss mitigation processes, or impede largely unaffected. Black Apr. 2021 Report, supra review can be measured by actual borrowers’ ability to identify errors committed by note 7. servicers reviewing applications for loss mitigation avoidance of foreclosure among the set 133 See Black Jan. 2021 Report, supra note 44. options. 2013 RESPA Servicing Final Rule, supra of borrowers for whom the special 134 Supra note 62 and accompanying text. note 11, at 10832.

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average benefit to preventing foreclosure any of which can lead to significant referenced above estimates the average and the number of foreclosures that under or overestimation of the benefits. effect of foreclosure on neighboring could be potentially prevented as a Estimates of the cost of foreclosure to house values at $14,531, or $17,600 in result of the special procedural consumers are large and include both 2021 dollars, based on research from safeguards. significant monetary and non-monetary 2008 or earlier. Combined, the HUD Importantly, the Bureau notes that costs, as well as costs to both the figures suggest a benefit of at least any evidence used in the estimation of borrower and non-borrowers. The Office $30,100, which the Bureau believes is the benefits to borrowers of avoiding of Housing and Urban Development likely an underestimate of the average foreclosure, generally, comes from (HUD) estimated in 2010 that a benefit to preventing foreclosure.142 earlier time periods that differ in many borrower’s average out-of-pocket cost Furthermore, during the COVID–19 and significant ways from the current from a completed foreclosure was pandemic and associated economic economic crisis. In the decade $10,300, or $12,500 in 2021 dollars.138 crisis, the cost of foreclosure for some preceding the current crisis, the This figure is likely an underestimate of borrowers may be even larger than the economy was not in distress. There was the average borrower benefit of avoiding expected average cost of foreclosure significant economic growth that foreclosure. First, this estimate relies on more generally. Housing insecurity included rising house prices, low rates data from before the 2000s, which may presents health risks during the of mortgage delinquency and be difficult to generalize to the current pandemic that would otherwise be forbearance, and falling interest rates. period. Second, there are non-monetary absent and that could continue to be The current economic crisis also differs costs to the borrower of foreclosure that present even if foreclosure is not in substantive ways compared to the last are not included in the estimate. These completed for months or years.143 In recession from 2008 to 2009. In may include but are not limited to, addition, searching for new housing particular, housing markets have increased housing instability, reduced may be unusually difficult as a result of remained strong throughout the crisis. homeownership, financial distress the pandemic and associated House prices have increased almost 7 (including increased delinquency on restrictions. Recent analysis has shown percent year-over-year as of January other debts),139 and adverse medical that the pandemic has had 2021, whereas house prices plummeted conditions.140 Although the Bureau is disproportionate economic impacts on between 2008 and 2009.136 Delinquent not aware of evidence that would permit certain communities. For example, borrowers in the last recession had quantification of such borrower costs, Black and Hispanic homeowners were significantly less equity in their homes they may be larger on average than the more than two times as likely to be compared to borrowers in the current out-of-pocket costs. Third, there may be behind on housing payments as of 144 crisis.137 All else equal, this means that non-borrower costs that are December 2020. Black and Hispanic fewer borrowers in the current crises are unaccounted for, which can affect both borrowers were also two times as likely to be in forbearance compared to White expected to enter into foreclosure as a individual consumers or families and 145 result of their equity position compared the greater community. For example, borrowers as of March 2021. The to the last crisis, making it difficult to research using data from earlier periods benefit to avoiding foreclosure for these generalize foreclosure outcomes from has found that foreclosure sales reduce arguably ‘‘marginal’’ borrowers may be the last recession to the current period. the sale price of neighboring homes by significantly larger compared to the Overall, these differences make the 1 to 1.6 percent.141 The HUD study average borrower. The total benefit to borrowers of available data a less reliable guide to delaying foreclosure also depends on likely near-term trends and generate 138 This estimate from HUD is based on a number the number of foreclosures that would substantial uncertainty in the of assumptions and circumstances that may not apply to all borrowers who experience a foreclosure be prevented by the provision; in other quantification of the benefits of avoiding sale or those that remediate through non- words, the difference in the total foreclosure for borrowers. The Bureau foreclosures options. U.S. Dep’t of Hous. and Urban foreclosures between what would occur Dev., Economic Impact Analysis of the FHA must make a number of assumptions to under the baseline and what would provide reasonable estimates of the Refinance Program for Borrowers in Negative Equity Positions (2010), https://www.hud.gov/sites/ occur under the special procedural benefit to consumers of the provision, documents/IA- REFINANCENEGATIVEEQUITY.PDF. Adjustment Foreclosure Externalities: New Evidence, 87. J. of 136 See Am. Enterprise Inst., National Home Price for inflation uses the change in the Consumer Price Urban Econ. 42 (2015), https:// Appreciation Index (Jan. 2021), https:// Index for All Urban Consumers (CPI–U) U.S. city www.sciencedirect.com/science/article/pii/ www.aei.org/wp-content/uploads/2021/03/HPA- average series for all items, not seasonally adjusted, S0094119015000170. infographic-Jan.-2021-FINAL.pdf?x91208. from January 2010 to February 2021. U.S. Bureau 142 Based on comments received by the Bureau on 137 A recent Bureau report using data from the of Labor Statistics, Consumer Price Index, https:// the May 2021 Notice of Proposed Rulemaking, National Mortgage Database (NMDB) showed that www.bls.gov/cpi/. commenters suggested that the significant costs of borrowers with an LTV ratio above 95 percent, a 139 Rebecca Diamond et al., The Effect of foreclosure for borrowers include the non-monetary common measure of whether a borrower may be Foreclosures on Homeowners, Tenants, and cost to borrowers and the cost to communities. As underwater on their mortgage and potentially more Landlords, (Nat’l Bureau of Econ. Res., Working such, the Bureau will focus on the combined value vulnerable to foreclosure, made up 5 percent of Paper No. 27358, 2020), https://www.nber.org/ of $30,100 rather than only the direct costs of borrowers that were delinquent, 1 percent of papers/w27358. avoiding foreclosure as was used in the April 2021 borrowers that were in forbearance, and less than 140 One study estimated that, on average, a single Notice of Proposed Rulemaking. 1 percent of borrowers that were current as reported foreclosure is associated with an increase in urgent 143 See, e.g., Nrupen Bhavsar et al., Housing through March 2021, https:// medical care costs of $1,974. The authors indicate Precarity and the COVID–19 Pandemic: Impacts of files.consumerfinance.gov/f/documents/cfpb_ that a significant portion of this cost may be Utility Disconnection and Eviction Moratoria on characteristics-mortgage-borrowers-during-covid- attributed to distressed homeowners although some Infections and Deaths Across US Counties, (Nat’l 19-pandemic_report_2021-05.pdf. Similar evidence may be due to externalities imposed on the general Bureau of Econ. Res., Working Paper No. 28394, from the Urban Institute showed that during the public. See Janet Currie et al., Is there a link 2021), https://www.nber.org/papers/w28394. five years preceding Q4 2009, the rate of serious between foreclosure and health?, 7 a.m. Econ. Rev. 144 Bureau of Consumer Fin. Prot., Housing delinquency and home price appreciation had a 63 (2015), https://www.aeaweb.org/ insecurity and the COVID–19 pandemic at 8 (Mar. strong negative relationship. By contrast, this articles?id=10.1257/pol.20120325. 2021), https://files.consumerfinance.gov/f/ relationship was weak in Q4 2020, https:// 141 See, e.g., Elliott Anenberg et al., Estimates of documents/cfpb_Housing_insecurity_and_the_ www.urban.org/urban-wire/understanding- the Size and Source of Price Declines Due to Nearby COVID-19_pandemic.pdf (Housing Insecurity differences-between-covid-19-recession-and-great- Foreclosures, 104 a.m. Econ. Rev. 2527 (2014), Report). recession-can-help-policymakers-implement- https://www.aeaweb.org/articles?id=10.1257/ 145 See CFPB Mortgage Borrower Pandemic successful-loss-mitigation. aer.104.8.2527; Kristopher Gerardi et al., Report, supra note 5.

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safeguards provision. To estimate this, forbearance program. The true more than 120 days delinquent as of the first step is estimating the number distribution of outcomes for these two August 31, 2021, and unable to resolve of loans that will be more than 120 days groups may depend, for example, on the their delinquency at that time. This delinquent as of the effective date of the borrower’s loan type and the level of range allows for a lower and upper final rule, which is August 31, 2021, or equity the borrower has. If the rate of bound estimate that reflects the that will become 120 days delinquent growth in recovery over time is lower substantial uncertainty that exists in between the effective date and the end for borrowers with delinquent loans and forecasting the state of the market and of the period during which the special not in a forbearance program, these the state of financial circumstances of procedural safeguards will apply, on or borrowers will have a higher incidence borrowers as of the effective date of the after January 1, 2022. The second step of foreclosure on average. Estimates rule.152 Next, the Bureau excludes 14 is to estimate what share of these loans from April 2021 show that the number percent of these loans, reflecting an would end in a foreclosure sale, and the of loans in forbearance programs (2.2 estimate of the share of loans serviced third step is to estimate how that share million) is significantly larger than the by small servicers to which the rule would be affected by the provision. number of borrowers who are seriously would not apply.153 This leaves As of April 2021, there were an delinquent and with loans that are not between roughly 620,000 and 1.2 estimated 2.1 million loans that were at in a forbearance program (191,000).148 million loans at risk of an initial filing least 90 days delinquent, the large Given the difference in the size of the of foreclosure to which the final rule majority of which were in forbearance two groups, changes in the incidence of would apply. programs.146 An unknown number of foreclosure among borrowers who are The baseline number of such loans borrowers whose loans are now delinquent and not in a forbearance that will end with a foreclosure sale can delinquent may be able to resume program will have a relatively smaller be estimated using data from the payments at the end of a forbearance effect on any estimate of the total benefit Servicing Rule Assessment Report. period or otherwise bring their loans to borrowers from avoiding foreclosure. Using data from 2016 (the latest year current before the final rule’s effective Most loans that become delinquent do reported), 18 months after the initial 60- date. One publicly available estimate not end with a foreclosure sale. The day delinquency, 8 percent of based on current trends is that 900,000 Bureau’s 2013 RESPA Servicing Rule delinquent loans ended with a loans will reach terminal expirations Assessment Report (Servicing foreclosure sale and an additional 24 starting in the fall of 2021.147 Many of Assessment Report) 149 found that, for a percent remained delinquent and had the loans currently delinquent are range of loans that became 90 days not been modified.154 Of the loans that delinquent because borrowers have been delinquent from 2005 to 2014, remain delinquent without a loan taking advantage of forbearance approximately 18 to 35 percent ended in modification, the Bureau expects a programs, and some borrowers in that a foreclosure sale within three years of significant number of these loans will situation may be able to resume the initial delinquency.150 Focusing on end with a foreclosure sale although the payments under their existing mortgage loans that become 60 days delinquent, Bureau does not have data to identify contract at the end of the forbearance. the same report found that, 18 months the exact share. The Bureau assumes Given the uncertainty about the rate at after the initial 60-day delinquency, one-half of this group will end with a which loans will exit forbearance or between 8 and 18 percent of loans had foreclosure sale, which is a significant delinquency from now until the ended in foreclosure sale over the share although not a majority of effective date, a reasonable approach is period 2001 to 2016, with an additional loans.155 Overall, this gives a baseline to consider a range with respect to the 24 to 48 percent remaining at some level estimate of loans that will experience share of loans that will reach terminal of delinquency.151 An estimate of the expirations starting in September of rate at which delinquent loans end in 152 An alternative to providing a range of 2021 and through the remainder of the foreclosure can be taken from this range estimates is to forecast an expected number of loans that will exit forbearance after the effective date of year. For purposes of quantifying a albeit with uncertainty as to the extent the rule and be more than 120 days delinquent and potential range of benefits to consumers, to which these data can be generalized unable to resolve the delinquency. Forecasting a the discussion below assumes that as of to the current period. For example, specific value for a future period requires making August 31, 2021, all of loans reaching using values from 2009 might significant assumptions due to the uncertainty overestimate the number of foreclosures associated with predicting future outcomes. In terminal expiration in the fall will be order to account for this uncertainty, standard considered 120 days delinquent under due to differences in house price growth econometric and statistical forecasting models also Regulation X and not in a forbearance and the resulting amount of equity report standard errors or confidence bands around plan. borrowers have in their homes. All else the estimates, effectively providing a range of equal, this difference might lead to a plausible estimates given the uncertainty in future Furthermore, the Bureau assumes that outcomes. Absent formal forecasting models, the the distribution of performance higher share of delinquent borrowers Bureau believes it is reasonable to rely on a range outcomes as of August 31, 2021, is the who prepay. of plausible estimates rather than making same for borrowers who would exit a The Bureau outlines one approach to significant assumptions to pinpoint a single forbearance program and for borrowers estimating the baseline number of estimate, which may be less reliable. foreclosures, albeit with significant 153 See Bureau of Consumer Fin. Prot., Data Point: with delinquent loans and never in a Servicer Size in the Mortgage Market (Nov. 2019), uncertainty. First, the Bureau considers https://files.consumerfinance.gov/f/documents/ 146 See Black Apr. 2021 Report, supra note 7. a range of between one-third and two- cfpb_2019-servicer-size-mortgage-market_report.pdf 147 Id. Black Knight’s estimates require significant thirds of the number of loans that are in (estimating that, as of 2018, approximately 14 assumptions due to the uncertainty in how forbearance as of April 2021 will be percent of mortgage loans were serviced by small forbearance will evolve in future periods. In servicers). particular, Black Knight assumes that borrowers 154 2013 RESPA Servicing Rule Assessment 148 exit forbearance at a rate of 3 percent per month See Black Apr. 2021 Report, supra note 7. It Report, supra note 11, at 48. until the end of 2021. The Bureau believes there is is possible for a borrower to be delinquent for 155 A large share of foreclosures is not completed significant uncertainty in the rate at which purposes of Regulation X during a forbearance within the first 18 months of delinquency, so it is borrowers will exit forbearance during the program. See supra note 62 and accompanying text. reasonable to assume that many loans that are still remainder of the year and, therefore, the extent to 149 See 2013 RESPA Servicing Rule Assessment delinquent 18 months after an initial 60-day which this assumption will hold. Black Knight does Report, supra note 11. delinquency will eventually end in foreclosure. See not provide alternative estimates under different 150 Id. at 69–70. 2013 RESPA Servicing Rule Assessment Report, assumptions or a range of plausible outcomes. 151 Id. at 48. supra note 11, at 52–53.

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foreclosure sale of between roughly Estimating how many foreclosures than one percent per month during the 125,000 and 250,000. might be prevented by a four-month second year.160 The Bureau notes that The next step is to estimate how the delay requires making strong the above discussion is based on the number of foreclosures would change assumptions about the additional recovery experience of loans that under the final rule. The final rule is growth in the share of recovered loans became 30 days delinquent. A smaller effective on August 31, 2021 and over the additional four-month period, number of loans became more seriously requires servicers to comply with where recovered is defined as a self- delinquent. Relative to that smaller special procedural safeguards until cure, pre-payment, or permanent loan base, the share of loans recovering January 1, 2022, delaying any modification. The data available to the during later periods would be greater. foreclosure proceedings for certain loans Bureau do not provide direct evidence The special procedural safeguard until after that date. The Bureau of how protecting this group of requirements would provide certain assumes each loan will experience a borrowers from initiation of foreclosure borrowers additional time during which four-month delay in the point at which will affect the likelihood that their loans servicers cannot initiate foreclosure, servicers can initiate foreclosure for will ultimately end with a foreclosure unless the special procedural safeguards borrowers with loans that exit sale. In particular, some factors from the have been met. For these borrowers, the forbearance and are more than 120 days current environment that are difficult to special procedural safeguards may delinquent and cannot resolve the generalize using data from earlier increase the number of borrowers who delinquency upon exiting forbearance periods are: First, borrowers with loans are able to recover, in particular, by between the effective date of the final in a forbearance plan may be very ensuring more borrowers have the rule and the end of the period during different from borrowers with loans that opportunity to pursue foreclosure which special procedural safeguards are delinquent but not in a forbearance avoidance options before a servicer will apply.156 This approach also plan; second, among borrowers with makes the first notice or filing required assumes that existing borrower loans in a forbearance plan, some for foreclosure. The size of this increase protections do not change. If, for borrowers have made no payments for depends on how much of a difference example, forbearance programs and 18 months while others have made this additional time makes in a foreclosure moratoria are extended, then partial or infrequent payments; and, borrower’s ability to recover. This, in the maximum delay period would be third, borrowers who have missed turn, depends on factors such as the shorter and the number of foreclosures payments because of a forbearance plan financial circumstances of borrowers as prevented would be smaller under the may not be required to repay those of the effective date, the number of final rule.157 Similarly, if servicers missed payments immediately. Any of foreclosures that servicers would in fact would not immediately initiate these differences across borrowers can initiate, absent the rule, during the foreclosure proceedings with the significantly affect the growth in the months after the effective date, and the borrowers absent the rule as some share of recovered loans over time. effect of delaying foreclosure on commenters indicated, then the delay The Bureau provides some evidence borrowers’ ability to obtain loss period as a result of the rule would be on the rate at which delinquent loans mitigation options or otherwise recover. shorter and the number of foreclosures may recover to estimate the total benefit The special procedural safeguards prevented would be reduced.158 to borrowers of the provision using provision will not change the course of information reported in the Servicing recovery for all borrowers who exit 156 The Bureau believes there is significant Assessment Report. Among borrowers forbearance and are at least 120 days uncertainty in the average length of delay for who become 30 days delinquent in delinquent as of the effective date of the affected loans. The average delay could be shorter if a significant share of loans exit forbearance 2014: 60 percent recover before their rule. In particular, it will not affect the between October and December 2021 and servicers second month of delinquency, 80 likelihood of foreclosure for loans to are generally able to initiate foreclosure upon percent recover by the 12th month of which the special procedural safeguards termination of the period during which special delinquency, and 85 percent recover by do not apply or for loans for which the procedural safeguards will apply on January 1, 159 2022. On the other hand, if the rule indirectly the 24th month of delinquency. special procedural safeguards have been causes a delay in servicers’ ability to initiate These patterns, first, show that most met. The Bureau believes the special foreclosure after January 1, 2022, then loans that borrowers who become delinquent procedural safeguards will directly exit forbearance between October and December recover early in their delinquency. affect the course of recovery for the 2021 may experience delays that extend beyond the termination of the period during which special Second, the data show that the rate of remaining group of borrowers who are procedural safeguards will apply. The average change in recovery falls as the length of more likely to be in contact with their benefits to consumers will be overestimated if the the delinquency increases. For example, servicer and are experiencing financial average delay is shorter and will be underestimated after the initial month of delinquency, difficulty as a direct result of the current if the average delay is longer. an additional 20 percent of borrowers 157 An extension of forbearance programs or economic crisis. This group of foreclosure moratoria would reduce the total recover by the 12th month of borrowers is expected to have a higher number of months delay under the rule. This would delinquency, and then an additional 5 likelihood of recovery as a result of the reduce the number of foreclosures prevented under percent of borrowers by the 24th month. additional time for meaningful review the rule by the number of loans that self-cure, On a monthly basis, the number of prepay, or enter into a loan modification during the generated by the special procedural time between the end of forbearance programs or borrowers who recover increases by less safeguards provision. foreclosure moratoria and January 1, 2022. The The Bureau does not know exactly number of loans that will self-cure, prepay, or enter limited information on what the economic how many borrowers exist for whom the into a loan modification during that period is circumstances and financial status of borrowers will special procedural safeguard uncertain given limited information on what the be at that time. economic circumstances and financial status of 159 See 2013 RESPA Servicing Rule Assessment requirements will not apply or for borrowers will be at that time. Report, supra note 11, at 85. The data used in this 158 If servicers delay initiating foreclosure, then figure are publicly available loan performance data 160 The rate of change in borrowers who have the total number of foreclosures prevented under from Fannie Mae. See Fed. Nat’l Mortg. Ass’n, recovered is calculated as: [(85 percent ¥ 80 the rule would fall by the number of loans that self- Fannie Mae Single-Family Loan Performance Data percent) ÷ 80 percent] × 100 ≈ 6 percent. This gives cure, prepay, or enter into a loan modification (Feb. 8, 2021), https:// a monthly average increase in the share of loans during that period of time. The number of loans that capitalmarkets.fanniemae.com/credit-risk-transfer/ that have recovered between the 12th and 24th will self-cure, prepay, or enter into a loan single-family-credit-risk-transfer/fannie-mae-single- month of delinquency of approximately 0.5 percent modification during that period is uncertain given family-loan-performance-data. (6 percent ÷ 12 months).

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whom the procedural safeguards may be month delay, the additional share of 2.2 percent may significantly met, and therefore would have similar loans that recover could then be overestimate or underestimate the actual outcomes both under the baseline and estimated at about 2.2 percent of the effect of the rule on whether loans under the final rule. Publicly available initial group of delinquent loans.163 The recover or end with a foreclosure sale. estimates report that roughly 19 percent remaining distribution of outcomes The discussion above relies on data of borrowers in forbearance as of March (foreclosure, prepay, and delinquent from between 2014 and 2016, which 2021 were 30+ days delinquent in without loan modification) are was not a period of economic distress as February of 2020. Given the special estimated based on a constant relative described earlier. In the current period procedural safeguard requirements, the share across groups.164 This means that compared to 2014 and 2016, the level of share of borrowers that were 120+ days 7.8 percent of delinquent loans will end delinquency is higher and changes in delinquent in March 2020 is likely a with a foreclosure sale within 18 the incidence of recovery over time may smaller share of borrowers in months. Similar to under the baseline, be slower. On the other hand, forbearance. There are no publicly the Bureau assumes that one-half of significant house price growth and available numbers on the share of loans loans that are delinquent and not in a higher levels of home equity may make in forbearance that correspond to loan modification will end with a it more likely the borrowers can avoid abandoned properties 161 or the share of foreclosure sale after more than 18 foreclosure if borrowers have better unresponsive borrowers. Assuming months (meaning an additional 11.7 options for selling or refinancing their some overlap between these three percent of delinquent loans would end homes than in 2014 and 2017. groups, the Bureau believes that 25 with a foreclosure sale). Applying this Finally, an estimate of a plausible percent is a reasonable estimate of the to the assumed 75 percent of loans that range of the potential total benefit to share of borrowers for whom the special would be directly affected by the special borrowers of avoiding foreclosure sales procedural safeguard requirements will procedural safeguard requirements as a result of the provision can be not apply or for whom the servicer may generates an estimate of foreclosure calculated by taking the difference in exercise the special procedural sales under the rule for this set of loans the number of foreclosure sales under safeguards, and who therefore will not of between roughly 91,000 and 182,000. the baseline compared to under the final experience a change in their course of Comparing this to baseline foreclosures rule and multiplying that difference by recovery resulting from the special for this group of loans, the special the per-borrower cost of foreclosure. procedural safeguards provision. This procedural safeguards would lead to Based on a per foreclosure cost to the implies that 75 percent of borrowers approximately 2,500 and 5,000 fewer borrower of $30,100, the benefit to with terminal expirations between foreclosures compared to the baseline. borrowers of avoiding foreclosure under September 2021 and the end of the year The Bureau believes that an assumed the rule is estimated at between $75 will be directly affected as a result of the increase in the likelihood of recovery of million and $151 million. The estimate special procedural safeguard is based on a number of assumptions requirements and may experience a more likely to recover from delinquency. This and represents one approach to means the rate of recovery should be higher for this quantifying the total benefits to course of recovery different than they group compared to the average borrower. If the otherwise would have absent the special additional rate of recovery compared to the average borrowers. The above estimate of the per- procedural safeguard provision. borrower was smaller (e.g., 0.525 percent or a 5 percent increase compared to the average) then the borrower benefit of avoiding foreclosure For purposes of estimating a plausible number of prevented foreclosures would decrease. likely underestimates the true value of range of potential benefits of the final If the additional rate of recovery was larger (e.g., 0.6 the benefit. As discussed above, there is rule, suppose that, for borrowers who percent or a 20 percent increase compared to the evidence that borrowers incur are afforded additional time before average), then the number of prevented foreclosures would increase. significant non-monetary costs that are foreclosure can be initiated as a result 163 The extent of the delay depends on when a not accounted for in the above of the rule, the increase in the number loan exits forbearance and the specifics of how the special procedural safeguards delay initiation of estimates. Furthermore, there may be of borrowers who are ultimately able to non-borrower benefits, such as benefits recover as a result of the delay is 0.55 foreclosure. If the exact number of loans experiencing a delay of a certain number of months to neighbors and communities from percent per month of delay, which is was known, then one could multiply the number reduced foreclosures, that are similar to the monthly rate at which the of loans exiting forbearance each month by the unaccounted for. Therefore, estimates of number of borrowers who have month-adjusted expected recovery rate. Then, the number of recovered loans can be calculated by the total benefit to consumers, which recovered grows during the second year summing across months. includes the benefit to borrowers and after a 30-day delinquency, as discussed 164 More specifically, the Bureau assumes that the non-borrowers are expected to be larger above.162 Assuming an average four- number of loans that either self-cure or are modified increases by 2 percent, and that other outcomes than the reported estimates. decrease proportionately. For loans that became 60 Some borrowers will benefit from the 161 Publicly available information from ATTOM days delinquent in 2016, the Bureau estimated that provision even if they would not have Data Solutions’ reports that, of the roughly 216,000 about 46 percent either cured or were modified experienced a foreclosure sale under the homes currently in the foreclosure process, roughly within 18 months, about 8 percent had ended in 7,960 or 3.7 percent are abandoned as of the third foreclosure, about 24 percent remained delinquent, baseline. Many borrowers are able to quarter of 2021. It is unclear how to generalize this and about 22 percent had prepaid. See 2013 RESPA cure their delinquency or otherwise information to the group of borrowers that remain Servicing Rule Assessment Report, supra note 11, avoid a foreclosure sale after the in forbearance. ATTOM Data Solutions, Q3 2020 at 48. A 2 percent increase in recovery would mean servicer has initiated the foreclosure U.S. Foreclosure Activity Reaches Historical Lows that the share of loans that recover increases to 47 as the Foreclosure Moratorium Stalls Filings (Oct. percent (46 percent × 1.02) given the additional process. Even though these borrowers 15, 2020), https://www.attomdata.com/news/ four-month delay. The assumption of a constant do not lose their homes to foreclosure, market-trends/foreclosures/attom-data-solutions- relative share across groups means that an they may incur foreclosure-related costs, september-and-q3-2020-u-s-foreclosure-market- additional recovery reduces the number of such as legal or administrative costs, report/. foreclosures by 0.15, the number of prepaid by 0.41, 162 The average monthly rate of recovery is 10 and the number of delinquent loans without loan from the early stages of the foreclosure percent higher than the rate of recovery used in the modification by 0.44. An increase in the share of process. The special procedural Bureau’s Notice of Proposed Rulemaking, which loans that cure or are modified from 46 to 47 safeguards provision could mean that used an average monthly recovery rate of 0.5 percent implies a reduction in the share that end some borrowers who would have cured percent. As described, the Bureau believes the in foreclosure by 18 months to about 7.9 percent, group of borrowers for whom the special procedural and the share that remain delinquent at 18 months their delinquency after foreclosure is safeguards would delay foreclosure are relatively to about 23.6 percent. initiated are instead able to cure their

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delinquency before foreclosure is impetus to engage with the servicer to would be subject to the special initiated, meaning that they are able to discuss options for avoiding foreclosure. procedural safeguard requirements and avoid such foreclosure-related costs. For these borrowers, delaying the where the special procedural safeguards Preventing the initiation of foreclosure initiation of foreclosure may delay their are not met before January 1, 2022, the also may have longer-term benefits. For engagement in determining a next step rule could delay many foreclosures from example, foreclosure initiation may for resolving the delinquency on the being initiated by up to four months for make future access to both mortgage and loan, whether it be through repayment, this group of borrowers. The delay nonmortgage credit more difficult if the loan modification, foreclosure, or other could be shorter for loans subject to a foreclosure initiation is reported on the alternatives. This delay may put the forbearance that extends past August 31, consumer’s credit report. The Bureau borrower in a worse position because 2021, including some loans subject to does not have data that would permit it the additional delay can increase the CARES Act that entered into to estimate the extent of this benefit of unpaid amounts and thereby reduce forbearance later than March 2020 and the final rule, which would likely vary options to avoid foreclosure. In order to are extended to a total of up to 18 according to State foreclosure laws and quantify this effect, the Bureau would months. The delay could also be the borrower’s specific situation. need data on how often borrowers who reduced to the extent that servicers In addition, there may be significant are delinquent and have not yet taken would not actually initiate foreclosure indirect effects of additional time to steps to engage with their servicer about for all borrowers who are more than 120 enter into loss mitigation given recent resolving their delinquency decide to days delinquent and whose loans are policy changes affecting distressed initiate such steps because they receive not in forbearance in the period between 165 borrowers. For example, the U.S. a foreclosure notice. The Bureau does September and December 2021.168 For Treasury Department (Treasury) is not have such data that would permit it borrowers in this group where administering the Homeowner to estimate the extent of this cost of the foreclosures are eventually completed, a Assistance Fund (HAF), which was rule. However, the Bureau anticipates delay in the initiation of foreclosure established under section 3206 of the that the provision of the rule permitting would be expected, all else equal, to American Rescue Plan Act of 2021 (the foreclosures to proceed when borrowers 166 lead to an equivalent delay in the ARP). The purpose of HAF is to are unresponsive will mitigate any such foreclosure’s completion. prevent mortgage delinquencies and costs, by permitting some foreclosures defaults, foreclosures, loss of utilities or to be initiated when borrowers choose Any delay in completing foreclosure home energy services, and displacement not to engage with their servicers. will mean additional costs to service the of homeowners experiencing financial Benefits and costs to covered persons. loan before completing foreclosure. This hardship after January 21, 2020.167 The provision will impose new costs on includes, for example, the costs of Funds from the HAF may be used for servicers and investors by delaying the mailing statements, providing required assistance with mortgage payments, date at which foreclosure can be disclosures, and responding to borrower homeowner’s insurance, utility initiated for loans subject to the special requests. For loans that are seriously payments, and other specified purposes. procedural safeguard requirements but delinquent, servicers may be required Treasury is expected to distribute the where the special procedural safeguards by investors to conduct frequent majority of HAF funds to the States after are not met, which will prolong the property inspections to determine if June 30, 2021, with most funds available ongoing costs of servicing these non- properties are occupied and may incur by the end of the year. Any delays in performing loans and delay the point at costs to provide upkeep for vacant foreclosure initiation resulting from the which servicers are able to complete the properties. MBA data report that the special loss mitigation procedural foreclosure and sell the property. These annual cost of servicing performing safeguards provision may enable costs apply to foreclosures that the rule loans in 2017 was $156 (or $13 per borrowers to take advantage of HAF does not prevent. As further discussed month) and the annual cost of servicing funds when they begin to be distributed. below, the costs could be mitigated nonperforming loans was $2,135 (or In particular, the additional time somewhat by a reduction in foreclosure- approximately $178 per month).169 available to certain borrowers may related costs in cases where the delay in Some costs of servicing delinquent enable them to avoid foreclosure by initiating foreclosure permits borrowers loans would be ongoing each month, offering additional time to gain access to to avoid entering into foreclosure including costs of complying with HAF assistance. The Bureau does not altogether. certain of the Bureau’s servicing rules. have data that would permit it to As discussed above, the Bureau does However, many of the average costs of estimate the extent of this benefit of the not have data to quantify the number of servicing a delinquent loan likely reflect final rule. loans that will ultimately enter one-time costs, such as the costs of The provision may create costs for foreclosure or the number that will end paying counsel to complete particular some borrowers if it delays their with a foreclosure sale. However, as also steps in the foreclosure process, which engagement in the loan modification discussed above, past experience and likely would not increase as a result of and loss mitigation process. For some the large number of loans currently in a delay. In light of this, the additional borrowers, notification of foreclosure a nonpayment status suggest that as servicing costs associated with a delay process initiation may provide the many as 91,000 and 182,000 loans of the loans that could be subject to delay as 168 Even absent the special procedural safeguards, 165 While the Bureau considers this potential a result of the special procedural servicers may be delayed in initiating foreclosure benefit for purposes of sec. 1022(b)(2)(A), it does safeguard requirements could ultimately because the attorneys and other service providers not rely on these potential benefits to finalize the end in foreclosure. An additional that support foreclosure actions may not have rule’s regulatory interventions under RESPA or the capacity to handle the anticipated number of Dodd-Frank Act. number of these loans are likely to enter delinquent loans, particularly given that the long 166 American Rescue Plan Act of 2021, Public the foreclosure process but not end in foreclosure moratoria have eroded capacity. Law 117–2, 135 Stat. 4 (2021). foreclosure because the borrower is able 169 Mortg. Bankers Ass’n, Servicing Operations 167 U.S. Dep’t of the Treasury, Homeowner to recover or prepay the loan either Study and Forum for Prime and Specialty Servicers Assistance Fund Guidance at 1 (Apr. 14, 2021), (Dec. 2018), https://www.mba.org/news-research- https://home.treasury.gov/policy-issues/ through refinancing or selling the home. and-resources/research-and-economics/single- coronavirus/assistance-for-state-local-and-tribal- By preventing servicers from family-research/servicing-operations-study-and- governments/homeowner-assistance-fund. initiating foreclosure for loans that forum-for-prime-and-specialty-servicers.

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are likely to be well below $178 per servicer may incur additional costs of review period that would have taken month for each loan. servicing non-performing loans during place between the effective date of the In addition, some mortgage servicers the period before those consumers rule and December 31, 2021. are obligated to make some principal resolve their delinquencies. Such Such an alternative could provide and interest payments to investors, even additional costs would be qualitatively larger benefits for certain borrowers if borrowers are not making payments. similar to the additional costs associated whose loans are more than 120 days Servicers may also be obligated to make with a delay in foreclosure sales. delinquent and either not eligible for the escrowed real estate tax and insurance Servicers would also incur costs to special procedural safeguards or loans payments to local taxing authorities and ensure the provision is not violated. The where the procedural safeguards are insurance companies. For loans subject relative simplicity of the provision may met. In general, the benefits of a pre- to the special procedural safeguards but mean the direct cost of developing foreclosure review period would be where the special procedural safeguards systems to ensure compliance is not too lower for borrowers whose loans are not are not met, the provision will extend great. However, servicers that meet affected by the procedural safeguard the period of time that servicers must procedural safeguard requirements and requirements. For example, if the continue making such advances for seek to pursue foreclosure (for example, servicer has already determined a loans on which they are not receiving when a borrower is unresponsive) will borrower is not eligible for any loss payment. Servicers may incur incur additional costs to ensure that the mitigation options the borrower would additional costs to maintain the liquid procedural safeguard requirements are be less likely to obtain a loss mitigation reserves necessary to advance these in fact met so that they do not option even if afforded additional time. funds. inadvertently violate the provision. However, the alternative could permit When the servicer does not advance The costs to servicers described above some borrowers to benefit from the principal and interest payments to may be mitigated somewhat by a additional time for loss mitigation investors, including cases in which a reduction in foreclosure-related costs, to review in situations where a borrower’s loan’s owner is servicing loans on its the extent that the additional time for eligibility changes within a relatively own behalf, a delay will also impose certain borrowers to be considered for short period of time, as may happen costs on investors by delaying their loss mitigation options prevents some during this particular economic crisis, receipt of proceeds from foreclosure foreclosures from being initiated. Often, as certain businesses may begin to sales and preventing them from a borrower who is able to obtain a loss reopen or open more completely based investing those funds and earning an mitigation option in the months before on when different State and local investment return during the time by foreclosure would otherwise be initiated jurisdictions make adjustments to their which a foreclosure sale is delayed. would also be able to obtain that option COVID–19-related restrictions. The These costs depend on the length of any shortly after foreclosure is initiated. In Bureau is not aware of data that could delay, the amount of funds that the such cases, a delay in initiating reasonably quantify the number of investor stands to recover through a foreclosure could mean servicers avoid borrowers for whom such circumstances foreclosure sale, and the investor’s the costs of initiating and then mean the alternative would provide opportunity cost of funds. For example, terminating, the foreclosure process. For significant benefits. the average unpaid principal balance of example, servicers may avoid certain Similarly, the benefits of the mortgage loans in forbearance as of costs, such as the cost of engaging local alternative approach would likely be February 2021 was reported to be foreclosure counsel, that they generally lower for borrowers whom the servicer approximately $200,000.170 Assuming incur during the initial stages of is unable to reach. Where servicers are that investors would invest foreclosure foreclosure and that they may not be unable to reach a delinquent borrower, sale proceeds in short-term U.S. able to pass on to borrowers. Even the borrower is less likely to apply for Treasury bills, using the six-month U.S. absent the rule, servicers may choose to or be considered for a loss mitigation Treasury rate of approximately 0.06 delay initiating foreclosure for loans option. Moreover, the first notice or percent in March 2021, the cost of that are more than 120 days delinquent, filing for foreclosure could prompt delaying receipt of $200,000 by four subject to investor requirements, if the communication from some consumers months would be approximately $40. probability of recovery is high enough who are otherwise unresponsive to Assuming instead that investors would that the benefit of waiting, and servicer communication attempts. invest foreclosure sale proceeds at the potentially avoiding foreclosure-related However, there may be some consumers Prime rate, 3.25 percent in March 2021, costs, outweighs the expected cost of whom the servicer cannot contact the cost of delaying receipt of $200,000 delaying an eventual foreclosure sale. within the time required by the final by four months would be approximately By requiring servicers to delay initiating rule but who would benefit from the $2,170. foreclosure until on or after January 1, additional time to be considered for loss In addition, as discussed above, the 2022, the rule will cause servicers to mitigation options if they were to provision may delay some borrowers’ delay foreclosure in some cases even contact their servicer later in the pre- engagement in the loan modification when they perceive the net benefit of foreclosure review period. The Bureau and loss mitigation process. For some doing so to be negative, and therefore is not aware of data that could borrowers, notification of foreclosure any benefit servicers would receive from reasonably quantify the number of process initiation may provide the delayed foreclosures is expected to be borrowers who meet the final rule’s impetus to engage with the servicer to smaller on average than the cost to criteria for unresponsiveness and, of discuss options for avoiding foreclosure. servicers arising from the delay. those, the number for whom such an If this causes some borrowers to resolve additional time before foreclosure could their delinquencies later than they Alternative Approach: Special Pre- be initiated would meaningfully would have under the baseline, the Foreclosure Review Period increase their benefits from the rule. In the proposed rule, the Bureau Similarly, the Bureau is not aware of 170 As of February 2021, there were an estimated proposed an alternative in which data that could reasonable quantify the $2.7 million loans in forbearance representing a servicers would not be allowed to number of borrowers for whom the final total unpaid principle balance of $537 billion, for an average loan size of approximately $198,000. See initiate the foreclosure process for any rule might provide a greater benefit than Black Jan. 2021 Report, supra note 44, at 7. loans during a special pre-foreclosure the alternative because permitting a first

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notice or filing for foreclosure may their forbearances to the maximum mitigation application to certain prompt them to engage with their allowable extent, many would receive a streamlined loan modifications made servicer regarding loss mitigation longer protection from foreclosure available to borrowers experiencing a options. under the alternative, which could COVID–19-related hardship, such as This alternative approach would provide them with a greater opportunity certain modifications offered through generally impose greater costs on to work with servicers to obtain an the GSEs’ flex modification programs, servicers than the final rule because it alternative to foreclosure. FHA’s COVID–19 owner-occupant loan would delay the initiation of foreclosure The alternative would not provide modification, and other comparable for a larger number of loans. If servicers protection for borrowers who do not programs. Once a borrower accepts an were unable to initiate the foreclosure enter into forbearance programs, offer made under § 1024.41(c)(2)(vi), for process for any loans until after meaning that borrowers who are or any loss mitigation application the December 31, 2021, more loans would become delinquent and do not enter borrower submitted before that offer, a experience a delay of the overall forbearance would not receive any servicer is no longer required to comply foreclosure timeline. The loans that benefit from the alternative beyond the with § 1024.41(b)(1)’s requirements would not be affected by the final rule’s existing prohibition on initiating regarding reasonable diligence to collect procedural safeguard requirements may foreclosures until the borrower has been a complete loss mitigation application, be loans that are particularly likely to delinquent for more than 120 days. and a servicer also is no longer required move to foreclosure, so may be the loans For servicers, the alternative approach to comply with § 1024.41(b)(2)’s for which the cost of preventing an would, like the final rule, delay evaluation and notice requirements. If earlier initiation of foreclosure is foreclosure for many of the affected the borrower fails to perform under a greatest. The extent of such costs borrowers. The cost of delay, on a per- trial loan modification plan offered depends on the number of loans that loan and per-month basis, would not be pursuant to § 1024.41(c)(2)(vi)(A) or if would be covered by these appreciably different under the the borrower requests further assistance, circumstances and the extent to which alternative than under the final rule, but a servicer must immediately resume those loans are in fact loans for which the number of foreclosures delayed reasonable diligence efforts as required the alternative’s pre-foreclosure review would likely differ. Whether the number under § 1024.41(b)(1) with regard to any period would not have increased the of loans delayed, and the total cost of incomplete loss mitigation application a likelihood of finding a loss mitigation delay, are larger or smaller under the borrower submitted before the servicer’s option. alternative than under the final rule offer of a trial loan modification plan, depends on whether the effect of and must send the notice required Alternative Approach: ‘‘Grace Period’’ additional delay of loans in forbearance Rather Than Date Certain under § 1024.41(b)(2) with regard to the programs that expire after the beginning most recent loss mitigation application The Bureau considered an alternative of the pre-foreclosure review period is the borrower submitted prior to the offer to the special procedural safeguard greater than the effect of eliminating the the servicer made under the exception, requirements in which servicers would delay for loans that are not in unless the servicer has already sent that be prohibited from making the first forbearance programs but are more than notice. notice or filing for foreclosure until a 120 days delinquent during the period Benefits and costs to consumers. The certain number of days (e.g., 60 or 120 that the proposed pre-foreclosure review exception will benefit borrowers to the days) after a borrower exits their period would be in effect. extent that they may be able to receive forbearance program. The alternative could be significantly a loan modification more quickly or Such an approach would provide more costly for servicers to implement may be more likely to obtain a loan additional benefits to some borrowers in because it would require servicers to modification at all, without having to forbearance programs compared to the track a new pre-foreclosure review submit a complete loss mitigation final rule, while reducing the benefit to period for each loan exiting a application. Where the exception to the other borrowers who are delinquent but forbearance program and to revise their complete application requirement not in forbearance programs. For compliance systems to ensure that they applies, it will generally result in a borrowers who are in a forbearance do not initiate foreclosure for loans that reduction in the time necessary to program that ends well after the are within that pre-foreclosure review gather required documents and effective date of the rule, this alternative period. The alternative could require information. In some cases, if borrowers approach would provide a longer period servicer systems to account for loan- would not otherwise complete a loss than in the rule during which the specific fact patterns, such as cases in mitigation application and could not borrower would be protected from the which a borrower’s forbearance period otherwise obtain a different loss initiation of foreclosure. For example, a expires but the borrower subsequently mitigation option, the provision could borrower whose forbearance ends on seeks to extend the forbearance period. enable borrowers to obtain a loan November 30, 2021 and whose loan is This could introduce complexity that modification in the first place.171 For subject to the special procedural would make the alternative more costly some borrowers, a loan modification safeguard requirements would be to come into compliance with compared may be their only opportunity to protected from initiation of foreclosure to the final rule, which would apply to for approximately one month under the all covered loans until a certain date. 171 Under existing § 1024.41(c), servicers may final rule, and approximately four The Bureau does not have data to under some circumstances evaluate an incomplete months under this alternative. A large estimate such additional costs relative loss mitigation application and offer a borrower a share of the borrowers currently in to the final rule. loss mitigation option based on the incomplete forbearance programs entered into application if the application has remained 2. Evaluation of Loss Mitigation incomplete for a significant period of time. Section forbearance after April 2020 and could 1024.41(c)(2)(ii). By providing additional extend their forbearances until Applications conditions under which servicers may offer certain November 2021 or later, and borrowers Section 1024.41(c)(2)(vi) extends loss mitigation options based on an incomplete application, the final rule may increase the continue to be eligible to enter into certain exceptions from likelihood that a borrower is able to qualify for a forbearance programs. Although some of § 1024.41(c)(2)(i)’s general requirement loss mitigation option after submitting an these borrowers may not in fact extend to evaluate only a complete loss incomplete application.

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become or remain current and avoid to more borrowers who have incomplete particular the number of such loans in foreclosure. Thus, for some borrowers applications that never reach a forbearance program that will end who obtain a loan modification under completion and who could therefore not during a short window of time, this the exception, the benefit of the be considered for a loan modification benefit could be substantial. Without provision is the value of obtaining a under the baseline compared to what the provision, in each case, the servicers loan modification or obtaining a loan might occur under standard market would further need to exercise modification more quickly, potentially conditions. The Bureau also does not reasonable diligence to collect the preventing delinquency fees and have data available to predict how many documentation needed for a complete foreclosure. borrowers with loans currently in a loss mitigation application, evaluate the As discussed above in part II, an forbearance or a delinquency would complete application, and inform the estimated 2.2 million borrowers had experience foreclosure but for a loan borrower of the outcome of the mortgage loans that were in a modification offered under the application for all available options. The forbearance program as of April 2021. exception. Bureau understands that the process of Of these, an estimated 14 percent are The provision may create costs for conducting this evaluation and serviced by small servicers, leaving borrowers if it prevents them from communicating the decision to approximately 1.9 million whose considering, and applying for, loss consumers can require considerable servicers are covered by the rule. Many mitigation options that they would staff time, including time spent talking of these borrowers may recover before prefer to a streamlined loan to consumers to explain the outcome of the rule’s effective date, however the modification. Borrowers who are the evaluation for all options.174 This large number and the ongoing economic considered for a streamlined loan could make the cost of evaluating crisis suggest that many borrowers will modification after submitting an borrowers for all available options be in distress at that time. The Bureau incomplete application may not be particularly acute in light of staffing does not have data to estimate the presented with other loss mitigation challenges servicers may face during the number of distressed borrowers who, as options that might be offered if they COVID–19 pandemic and associated of the rule’s effective date, would not be were to submit a complete application. economic crisis and the large number of able to complete a loss mitigation In the 2013 RESPA Servicing Final Rule, borrowers who may be seeking loss application if they were required to the Bureau explained its view that mitigation at the same time. complete the application to receive a borrowers would benefit from the In addition to the reduced costs loan modification offer. However, the complete application requirement, in associated with evaluation for Bureau believes that in the present part because borrowers would generally streamlined loan modifications, the circumstances that percentage could be be better able to choose among available provision may reduce servicer costs substantial due to limitations in servicer loss mitigation options if they are when evaluating borrowers for other capacity and the challenges some presented simultaneously. The Bureau loss mitigation options, by freeing borrowers face in dealing with the social acknowledges that borrowers accepting resources that can be used to work with and economic effects of the COVID–19 an offer made under § 1024.41(c)(2)(vi) borrowers who may not qualify for pandemic and related economic crisis. could be prevented from considering streamlined loan modifications or for As discussed above in part II, if loss mitigation options that they may whom streamlined loan modifications borrowers who are currently in an prefer to a streamlined loan may not be the borrower’s preferred eligible forbearance program request an modification in connection with an option. Many servicers are likely to extension to the maximum time offered incomplete loss mitigation application need to process a large number of by the government agencies, those loans submitted before the offer. However, if applications in a short period of time that were placed in a forbearance a borrower is interested in and eligible while complying with the timelines and program early in the pandemic (March for another form of loss mitigation other requirements of the servicing and April 2020) will reach the end of besides a streamlined loan modification, rules. This may place strain on servicer their forbearance period in September under the rule a borrower who receives resources that lead to additional costs, and October of 2021. Black Knight data a streamlined loan modification after such as the need to pay overtime wages suggest there could be as many as evaluation of an incomplete application or to hire and train additional staff to 760,000 borrowers exiting their will still retain the ability under process loss mitigation applications. forbearance programs after 18 months of § 1024.41 to submit a complete loss The provision will reduce this strain forborne payments in September and mitigation application and receive an and may thereby reduce overall October of 2021.172 Although some evaluation for all available options after servicing costs. fraction of the borrowers with loans in the loan modification is in place. these forbearance programs may be able Benefits and costs to covered persons. The Bureau does not have data to to resume contractual payments at the Servicers will benefit from the reduction quantify the reduction in costs to end of the forbearance period, many in burden from the requirement to servicers from the provision. The may not be able to do so and may seek process complete loss mitigation Bureau understands that working with to modify their loans. Processing applications for streamlined loan borrowers to complete applications and complete loss mitigation applications modifications that are eligible for the to communicate decisions on complete for all these borrowers in a short period exception. Given the number of loans applications often requires significant of time would likely strain many that are currently delinquent, and in one-on-one communication between servicers’ resources.173 This might lead servicer personnel and borrowers. Even See Caroline Patane, Servicers report biggest a modest reduction in staff time needed challenges implementing COVID–19 assistance 172 for such communication, given the large Black Apr. 2021 Report, supra note 7, at 9. An programs, Fed. Nat’l Mortg. Ass’n, Perspectives estimated 14 percent of all loans are serviced by Blog (Jan. 12, 2021), https://www.fanniemae.com/ numbers of borrowers who may be small servicers, and if that percentage applies to research-and-insights/perspectives/servicers-report- seeking loan modifications, could lead these loans, then an estimated roughly 650,000 biggest-challenges-implementing-covid-19- to substantial cost savings. loans subject to the final rule would exit assistance-programs. Such challenges could forbearance in these months. become even more significant if a large number of 173 Servicers have reported challenges in borrowers seek foreclosure avoidance options 174 2013 RESPA Servicing Rule Assessment customer-facing staff capacity during the pandemic. during a short period of time after forbearances end. Report, supra note 11, at 155–156.

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3. Live Contact and Reasonable reasonable diligence to complete the The Bureau is not aware of how many Diligence Requirements loss mitigation application before the servicers provide general as opposed to Section 1024.39(e) temporarily end of forbearance. Comment 41(b)(1)– specific information about forbearance requires servicers to provide additional 4.iii already requires servicers to take programs or post-forbearance options information to certain borrowers during these steps before the end of the short- that are available to a particular live contacts established under existing term payment forbearance program borrower. The Bureau does not have requirements. In general, for borrowers offered based on the evaluation of an data that could be used to quantify the that are not in forbearance at the time incomplete application, but does not number of borrowers who will benefit live contact is established, if the owner specify how soon before the end of the from the provision. As discussed above, or assignee of the borrower’s mortgage forbearance program the servicer must an estimated 2.2 million borrowers were loan makes a forbearance program make these contacts. in forbearance programs as of April available to borrowers experiencing a Benefits and costs to consumers and 2021 and an estimated 191,000 COVID–19-related hardship, covered persons. Section 1024.39(e)(1) borrowers had loans that were seriously § 1024.39(e)(1) requires servicers to will benefit borrowers who are eligible delinquent and not in a forbearance inform the borrower that forbearance for a forbearance program but not program. Although some fraction of the programs are available for borrowers currently in one, by potentially making borrowers with loans in a forbearance it more likely that such borrowers are experiencing such a hardship. Unless program may be able to resume able to take advantage of such programs. the borrower states they are not contractual payments at the end of the Although most borrowers who have interested, the servicer must list and forbearance period, many may benefit briefly describe available forbearance missed mortgage payments are in from more specific information about programs to those borrowers and the forbearance programs, a significant the options available to them. actions a borrower must take to be number of delinquent borrowers are not. evaluated. Additionally, the servicer Research has found that some borrowers The costs to covered persons of must identify at least one way the are not aware of the availability of complying with the provision also borrower can find contact information forbearance or misunderstand the terms depend on the extent to which servicers for homeownership counseling services. of forbearance.175 Similarly, are already taking the actions required In general, proposed § 1024.39(e)(2) § 1024.39(e)(2), together with comment by the provision. Servicers that do not requires that, for borrowers who are in 41(b)1–4.iv, will benefit borrowers who currently take these actions will need to a forbearance program made available to are delinquent and are nearing the end revise call scripts and make similar those experiencing a COVID–19-related of a forbearance period by making it changes to their procedures when hardship at the time of live contact, more likely that they are aware of their conducting live contact servicers must provide specific options at the end of the forbearance communications.177 Even servicers that information about the borrower’s period in time to take the action most do currently take actions that comply current forbearance program and list appropriate for their circumstances. with the provisions will likely incur and briefly describe available post- For both provisions, the extent of the one-time costs to review policies and forbearance loss mitigation options benefit depends to a large degree on procedures and potentially make during the required live contact that whether servicers are already taking the changes to ensure compliance with the occurs at least 10 days but no more than actions required by the applicable rule. The Bureau does not have data to 45 days before the scheduled end of the provision. The Bureau understands that determine the extent of such one-time forbearance period. Servicers must also many servicers already have a practice costs. Although the changes are limited, identify at least one way the borrower of informing borrowers about the the short timeframe to implement the can find contact information for availability of general or specific changes, and the fact that they would be homeownership counseling services. forbearance programs, and options required at a time when servicers are The rule does not require servicers to when exiting forbearance programs, as make good faith efforts to establish live part of live contact communications.176 faced with a wide array of challenges contact with a borrower beyond those related to the pandemic, will tend to 178 already required by § 1024.39(a). 175 For example, recent survey evidence finds that make any changes more costly. In conjunction with § 1024.39(e)(2), among borrowers who reported needing forbearance the final rule adds a new comment but had not entered forbearance, the fact that they had not entered forbearance was explained by 41(b)1–4.iv, which states that if the factors including a lack of understanding about how borrower is in a short-term payment forbearance plans work or whether the borrower forbearance program made available to would qualify, or a lack of understanding about benefits, and incurring many of the costs, that borrowers experiencing a financial how to request forbearance. See Lauren Lambie- would otherwise be generated by the provision. Hanson et al., Recent Data on Mortgage 177 Servicers should already have access to the hardship due, directly or indirectly, to Forbearance: Borrower Uptake and Understanding information they would need to provide under the the COVID–19 emergency that was of Lender Accommodations, Fed. Reserve Bank of offered based on evaluation of an Phila. (Mar. 2021), https:// provision, because servicers are required to have policies and procedures to maintain and incomplete application, a servicer must www.philadelphiafed.org/consumer-finance/ mortgage-markets/recent-data-on-mortgage- communicate such information to borrowers under contact the borrower no later than 30 forbearance-borrower-uptake-and-understanding- 12 CFR 1024.40(b)(1)(i) and 1024.38(b)(2)(i). days before the end of the forbearance of-lender-accommodations. 178 One recent survey of mortgage servicing period to determine if the borrower 176 For example, Fannie Mae requires servicers to executives found that they identified adapting to wishes to complete the loss mitigation begin attempts to contact the borrower no later than investor policy changes as the biggest challenge in application and proceed with a full loss 30 days prior to the expiration of the forbearance implementing COVID–19 assistance programs. See plan term to, among other things, determine the Caroline Patane, Servicers report biggest challenges mitigation evaluation. If the borrower reason for the delinquency and educate the implementing COVID–19 assistance programs, Fed. requests further assistance, the servicer borrower on the availability of workout options, as Nat’l Mortg. Ass’n, Perspectives Blog (Jan. 12, should exercise reasonable diligence to appropriate. Fed. Nat’l Mortg. Ass’n, Lender Letter (LL–2021–02) (Feb. 25, 2021), https:// 2021), https://www.fanniemae.com/research-and- complete the application before the end singlefamily.fanniemae.com/media/24891/display. insights/perspectives/servicers-report-biggest- of the forbearance period. The servicer Servicers that are already complying with such challenges-implementing-covid-19-assistance- must also continue to exercise guidelines may already be providing many of the programs.

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E. Potential Specific Impacts of the Rule Impact of the Provisions on Consumers stand-alone line of business and would in Rural Areas likely need to service substantially more Insured Depository Institutions and than 5,000 loans to justify its investment Credit Unions With $10 Billion or Less Consumers in rural areas may in servicing activities.183 Therefore, the in Total Assets, as Described in Section experience benefits from the rule that Bureau has concluded that the final rule 1026 are different in certain respects from the benefits experienced by consumers in will not have an effect on a substantial The Bureau believes that a large general. Consumers in rural areas may number of small entities. majority of depository institutions and be more likely to obtain mortgages from Accordingly, the Acting Director credit unions with $10 billion or less in small local banks and credit unions that hereby certifies that this final rule will total assets that are engaged in servicing either service the loans in portfolio or not have a significant economic impact mortgage loans qualify as ‘‘small sell the loans and retain the servicing on a substantial number of small servicers’’ for purposes of Regulation X rights. These servicers may be small entities. Thus, neither an IRFA nor a because they service 5,000 or fewer servicers that are exempt from the rule, small business review panel is required loans, all of which they or an affiliate although they may already provide most for this proposal. own or originated. In the past, the of the benefits to consumers that the IX. Paperwork Reduction Act Bureau has estimated that more than 95 rule is designed to provide. percent of insured depositories and Under the Paperwork Reduction Act credit unions with $10 billion or less in VIII. Final Regulatory Flexibility Act of 1995 (PRA), Federal agencies are total assets service 5,000 mortgage loans Analysis generally required to seek the Office of or fewer.179 The Bureau believes that The Regulatory Flexibility Act (RFA) Management and Budget’s (OMB’s) servicers that service loans that they generally requires an agency to conduct approval for information collection neither own nor originated tend to an initial regulatory flexibility analysis requirements prior to implementation. service more than 5,000 loans, given the (IRFA) and a final regulatory flexibility The collections of information related to returns to scale in servicing technology. analysis of any rule subject to notice- Regulation X have been previously Small servicers are exempt from the rule and-comment rulemaking requirements, reviewed and approved by OMB and and are therefore not be directly affected unless the agency certifies that the rule assigned OMB Control number 3170– by the rule. will not have a significant economic 0016. Under the PRA, the Bureau may With respect to servicers that are not impact on a substantial number of small not conduct or sponsor and, small servicers but are depository entities.180 The Bureau also is subject to notwithstanding any other provision of institutions with $10 billion or less in certain additional procedures under the law, a person is not required to respond total assets, the Bureau believes that the RFA involving the convening of a panel to an information collection unless the consideration of benefits and costs of to consult with small business information collection displays a valid covered persons presented above representatives before proposing a rule control number assigned by OMB. generally describes the impacts of the for which an IRFA is required.181 The The Bureau has determined that this rule on depository institutions and Bureau certified that the proposed rule, final rule does not impose any new or credit unions with $10 billion or less in if adopted, would not have a significant revise any existing recordkeeping, total assets that are engaged in servicing economic impact on a substantial reporting, or disclosure requirements on 182 mortgage loans. number of small entities. covered entities or members of the Consistent with the proposed rule, the public that would be collections of Impact of the Provisions on Consumer final rule does not apply to entities that information requiring approval by the Access to Credit are ‘‘small servicers’’ for purposes of the Office of Management and Budget under Restrictions on servicers’ ability to Regulation X: Generally, servicers that the Paperwork Reduction Act. foreclose on mortgage loans could, in service 5,000 or fewer mortgage loans, The Bureau has a continuing interest theory, reduce the expected return to all of which the servicer or affiliates in the public’s opinions regarding this mortgage lending and cause lenders to own or originated. A large majority of determination. At any time, comments small entities that service mortgage increase interest rates or reduce access regarding this determination may be loans are small servicers and are to mortgage credit, particularly for loans sent to: The Bureau of Consumer therefore not directly affected by the with a higher estimated risk of default. Financial Protection (Attention: PRA rule. Although some servicers that are The temporary nature of the rule means Office), 1700 G Street NW, Washington, small entities may service more than that it is unlikely to have long-term DC 20552, or by email to CFPB_Public_ 5,000 loans and not qualify as small effects on access to mortgage credit. In [email protected]. servicers for that reason, the Bureau has the short run, the Bureau cannot rule previously estimated that approximately X. Congressional Review Act out the possibility that the rule will 99 percent of small-entity servicers have the effect of increasing mortgage Pursuant to the Congressional Review service 5,000 loans or fewer. The Bureau 184 interest rates or delaying access to credit Act, the Bureau will submit a report does not have data to indicate whether containing this rule and other required for some borrowers, particularly for these institutions service loans that they borrowers with lower credit scores who information to the U.S. Senate, the U.S. do not own and did not originate. House of Representatives, and the may have a higher likelihood of default However, as discussed in the preamble in the first few months of the loan term. Comptroller General of the United to the 2013 RESPA Servicing Final Rule, States at least 60 days prior to the rule’s The Bureau does not have a way of the Bureau believes that a servicer that quantifying any such effect but notes services 5,000 loans or fewer is unlikely 183 that it would be limited to the period 2013 RESPA Servicing Final Rule, supra note to service loans that it did not originate 11, at 10866. For example, one industry participant before January 1, 2022. The exemption because a servicer that services loans for estimated that most servicers would need a of small servicers from the rule will others is likely to see servicing as a portfolio of 175,000 to 200,000 loans to be help maintain consumer access to credit profitable. Bonnie Sinnock, Servicers Search for ‘Goldilocks’ Size for Max Profits, Am. Banker (Sept. through these providers. 180 5 U.S.C. 601 et seq. 10, 2015), https://www.americanbanker.com/news/ 181 5 U.S.C. 609. servicers-search-for-goldilocks-size-for-max-profits. 179 81 FR 72160 (Oct. 19, 2016). 182 86 FR 18840, 18877 (Apr. 9, 2021). 184 5 U.S.C. 801 et seq.

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published effective date. The Office of (e) Temporary COVID–19-Related Live such as referencing the borrower’s Information and Regulatory Affairs has Contact. Until October 1, 2022, in periodic statement. designated this rule as a ‘‘major rule’’ as complying with the requirements ■ 4. Section 1024.41 is amended by: defined by 5 U.S.C. 804(2). described in paragraph (a) of this ■ a. Revising paragraphs (c)(2)(i), and section, promptly after establishing live XI. List of Subjects in 12 CFR Part 1024 (c)(2)(v)(A)(1); contact with a borrower the servicer ■ b. Adding paragraph (c)(2)(vi); and Banks, banking, Condominiums, shall take the following actions: ■ c. Adding paragraph (f)(3). Consumer protection, Credit unions, (1) Borrowers not in forbearance The additions and revisions read as Housing, Mortgage insurance, programs at the time of live contact. At follows: Mortgages, National banks, Reporting the time the servicer establishes live and recordkeeping requirements, contact pursuant to paragraph (a) of this § 1024.41 Loss mitigation procedures. Savings associations. section, if the borrower is not in a * * * * * XII. Authority and Issuance forbearance program and the owner or (c) * * * assignee of the borrower’s mortgage loan (2) * * * (i) In general. Except as set For the reasons set forth in the makes a forbearance program available forth in paragraphs (c)(2)(ii), (iii), (v), preamble, the Bureau amends to borrowers experiencing a COVID–19- and (vi) of this section, a servicer shall Regulation X, 12 CFR part 1024, as set related hardship, the servicer shall not evade the requirement to evaluate a forth below: inform the borrower of the following complete loss mitigation application for PART 1024—REAL ESTATE information: all loss mitigation options available to SETTLEMENT PROCEDURES ACT (i) That forbearance programs are the borrower by offering a loss (REGULATION X) available for borrowers experiencing a mitigation option based upon an COVID–19-related hardship and, unless evaluation of any information provided ■ 1. The authority citation for part 1024 the borrower states that they are not by a borrower in connection with an continues to read as follows: interested in receiving information incomplete loss mitigation application. Authority: 12 U.S.C. 2603–2605, 2607, about such programs, the servicer shall * * * * * 2609, 2617, 5512, 5532, 5581. list and briefly describe to the borrower (v) * * * (A) * * * any such forbearance programs made (1) The loss mitigation option permits Subpart C—Mortgage Servicing available at that time and the actions the the borrower to delay paying covered amounts until the mortgage loan is ■ borrower must take to be evaluated for 2. Amend § 1024.31 by adding, in such forbearance programs. refinanced, the mortgaged property is alphabetical order, a definition of (ii) At least one way that the borrower sold, the term of the mortgage loan ends, ‘‘COVID–19-related hardship’’ to read as can find contact information for or, for a mortgage loan insured by the follows: homeownership counseling services, Federal Housing Administration, the § 1024.31 Definitions. such as referencing the borrower’s mortgage insurance terminates. For * * * * * periodic statement. purposes of this paragraph COVID–19-related hardship means a (2) Borrowers in forbearance programs (c)(2)(v)(A)(1), ‘‘covered amounts’’ financial hardship due, directly or at the time of live contact. If the includes, without limitation, all indirectly, to the national emergency for borrower is in a forbearance program principal and interest payments the COVID–19 pandemic declared in made available to borrowers forborne under a payment forbearance Proclamation 9994 on March 13, 2020 experiencing a COVID–19-related program made available to borrowers (beginning on March 1, 2020) and hardship, during the live contact experiencing a COVID–19-related continued on February 24, 2021, in established pursuant to paragraph (a) of hardship, including a payment accordance with section 202(d) of the this section that occurs at least 10 days forbearance program made pursuant to National Emergencies Act (50 and no more than 45 days before the the Coronavirus Economic Stabilization U.S.C.1622(d)). scheduled end of the forbearance Act, section 4022 (15 U.S.C. 9056); it * * * * * program or, if the scheduled end date of also includes, without limitation, all other principal and interest payments ■ 3. Section 1024.39 is amended by the forbearance program occurs between that are due and unpaid by a borrower revising paragraph (a) and adding August 31, 2021 and September 10, paragraph (e) to read as follows: 2021, during the first live contact made experiencing a COVID–19-related pursuant paragraph (a) of this section hardship. For purposes of this § 1024.39 Early intervention requirements after August 31, 2021, the servicer shall paragraph (c)(2)(v)(A)(1), ‘‘the term of for certain borrowers. inform the borrower of the following the mortgage loan’’ means the term of (a) Live Contact. Except as otherwise information: the mortgage loan according to the provided in this section, a servicer shall (i) The date the borrower’s current obligation between the parties in effect establish or make good faith efforts to forbearance program is scheduled to when the borrower is offered the loss establish live contact with a delinquent end; mitigation option. borrower no later than the 36th day of (ii) A list and brief description of each * * * * * a borrower’s delinquency and again no of the types of forbearance extension, (vi) Certain COVID–19-related loan later than 36 days after each payment repayment options, and other loss modification options. (A) due date so long as the borrower mitigation options made available to the Notwithstanding paragraph (c)(2)(i) of remains delinquent. Promptly after borrower by the owner or assignee of the this section, a servicer may offer a establishing live contact with a borrower’s mortgage loan at the time of borrower a loan modification based borrower, the servicer shall inform the the live contact, and the actions the upon evaluation of an incomplete borrower about the availability of loss borrower must take to be evaluated for application, provided that all of the mitigation options, if appropriate, and such loss mitigation options; and following criteria are met: take the actions described in paragraph (iii) At least one way that the (1) The loan modification extends the (e) of this section, if applicable. borrower can find contact information term of the loan by no more than 480 * * * * * for homeownership counseling services, months from the date the loan

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modification is effective and, for the unless the servicer has already provided (3) The servicer sent all notices entire modified term, does not cause the such notice to the borrower. required by this section, as applicable, borrower’s monthly required principal * * * * * during the 90-day period before the and interest payment to increase beyond (f) * * * servicer makes the first notice or filing the monthly principal and interest (3) Temporary Special COVID–19 Loss required by applicable law for any payment required prior to the loan Mitigation Procedural Safeguards. (i) In judicial or non-judicial foreclosure modification. general. To give a borrower a process; and (2) If the loan modification permits meaningful opportunity to pursue loss (4) The borrower’s forbearance the borrower to delay paying certain mitigation options, a servicer must program, if applicable, ended at least 30 amounts until the mortgage loan is ensure that one of the procedural days before the servicer makes the first refinanced, the mortgaged property is safeguards described in paragraph notice or filing required by applicable sold, the loan modification matures, or, (f)(3)(ii) of this section has been met law for any judicial or non-judicial for a mortgage loan insured by the before making the first notice or filing foreclosure process. Federal Housing Administration, the required by applicable law for any (iii) Sunset date. This paragraph (f)(3) mortgage insurance terminates, those judicial or non-judicial foreclosure does not apply if a servicer makes the amounts do not accrue interest. process because of a delinquency under first notice or filing required by applicable law for any judicial or non- (3) The loan modification is made paragraph (f)(1)(i) if: (A) The borrower’s mortgage loan judicial foreclosure process on or after available to borrowers experiencing a January 1, 2022. COVID–19-related hardship. obligation became more than 120 days delinquent on or after March 1, 2020; * * * * * (4) Either the borrower’s acceptance of and ■ 5. In Supplement I to Part 1024: an offer pursuant to this paragraph (B) The statute of limitations ■ a. Under § 1024.39—Early (c)(2)(vi)(A) ends any preexisting applicable to the foreclosure action intervention requirements for certain delinquency on the mortgage loan or the being taken in the laws of the State borrowers, 39(a) Live contact, revise loan modification offered pursuant to where the property securing the ‘‘39(a) Live contact’’; this paragraph (c)(2)(vi)(A) is designed mortgage loan is located expires on or ■ b. Under § 1024.41—Loss mitigation to end any preexisting delinquency on after January 1, 2022. procedures, revise ‘‘41(b)(1) Complete the mortgage loan upon the borrower (ii) Procedural safeguards. A loss mitigation application’’; and satisfying the servicer’s requirements for ■ procedural safeguard is met if: c. Under § 1024.41—Loss mitigation completing a trial loan modification (A) Complete loss mitigation procedures, after 41(f) Prohibition on plan and accepting a permanent loan application evaluated. The borrower Foreclosure Referral, add paragraphs modification. submitted a complete loss mitigation 41(f)(3) Temporary Special COVID–19 (5) The servicer does not charge any application, remained delinquent at all Loss Mitigation Procedural Safeguards fee in connection with the loan times since submitting the application, and 41(f)(3)(ii)(C) Unresponsive modification, and the servicer waives all and paragraph (f)(2) of this section borrower. existing late charges, penalties, stop permitted the servicer to make the first The revisions and addition read as payment fees, or similar charges that notice or filing required for foreclosure; follows: were incurred on or after March 1, 2020, (B) Abandoned property. The Supplement I to Part 1024—Official promptly upon the borrower’s property securing the mortgage loan is Interpretations acceptance of the loan modification. abandoned according to the laws of the Subpart C—Mortgage Servicing (B) Once the borrower accepts an offer State or municipality where the made pursuant to paragraph (c)(2)(vi)(A) property is located when the servicer * * * * * of this section, the servicer is not makes the first notice or filing required § 1024.39—Early Intervention Requirements required to comply with paragraph by applicable law for any judicial or for Certain Borrowers (b)(1) or (2) of this section with regard non-judicial foreclosure process; or 39(a) Live Contact to any loss mitigation application the (C) Unresponsive borrower. The 1. Delinquency. Section 1024.39 requires a borrower submitted prior to the servicer did not receive any servicer to establish or attempt to establish servicer’s offer of the loan modification communications from the borrower for live contact no later than the 36th day of a described in paragraph (c)(2)(vi)(A) of at least 90 days before the servicer borrower’s delinquency. This provision is this section. However, if the borrower makes the first notice or filing required illustrated as follows: fails to perform under a trial loan by applicable law for any judicial or i. Assume a mortgage loan obligation with modification plan offered pursuant to non-judicial foreclosure process and all a monthly billing cycle and monthly paragraph (c)(2)(vi)(A) of this section or of the following conditions are met: payments of $2,000 representing principal, requests further assistance, the servicer (1) The servicer made good faith interest, and escrow due on the first of each month. must immediately resume reasonable efforts to establish live contact with the A. The borrower fails to make a payment diligence efforts as required under borrower after each payment due date, of $2,000 on, and makes no payment during paragraph (b)(1) of this section with as required by § 1024.39(a), during the the 36-day period after, January 1. The regard to any loss mitigation application 90-day period before the servicer makes servicer must establish or make good faith the borrower submitted prior to the the first notice or filing required by efforts to establish live contact not later than servicer’s offer of the trial loan applicable law for any judicial or non- 36 days after January 1—i.e., on or before modification plan and must provide the judicial foreclosure process; February 6. borrower with the notice required by (2) The servicer sent the written B. The borrower makes no payments paragraph (b)(2)(i)(B) of this section notice required by § 1024.39(b) at least during the period January 1 through April 1, although payments of $2,000 each on January with regard to the most recent loss 10 days and no more than 45 days 1, February 1, and March 1 are due. mitigation application the borrower before the servicer makes the first notice Assuming it is not a leap year; the borrower submitted prior to the servicer’s offer of or filing required by applicable law for is 90 days delinquent as of April 1. The the loan modification described in any judicial or non-judicial foreclosure servicer may time its attempts to establish paragraph (c)(2)(vi)(A) of this section, process; live contact such that a single attempt will

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meet the requirements of § 1024.39(a) for two statement or in an electronic communication. the purported agent is acting on the missed payments. To illustrate, the servicer However, if a borrower is in a situation such borrower’s behalf. complies with § 1024.39(a) if the servicer that the additional live contact information is 6. Relationship between live contact and makes a good faith effort to establish live required under § 1024.39(e) or if a servicer loss mitigation procedures. If the servicer has contact with the borrower, for example, on relies on the temporary special COVID–19 established and is maintaining ongoing February 5 and again on March 25. The loss mitigation procedural safeguards contact with the borrower under the loss February 5 attempt meets the requirements of provision in § 1024.41(f)(3)(ii)(C)(1), mitigation procedures under § 1024.41, § 1024.39(a) for both the January 1 and providing no more than a sentence requesting including during the borrower’s completion February 1 missed payments. The March 25 that the borrower contact the servicer with of a loss mitigation application or the attempt meets the requirements of regard to the delinquencies in the periodic servicer’s evaluation of the borrower’s § 1024.39(a) for the March 1 missed payment. statement or in an electronic communication complete loss mitigation application, or if the ii. A borrower who is performing as agreed would not be a reasonable step, under the servicer has sent the borrower a notice under a loss mitigation option designed to circumstances, to make good faith efforts to pursuant to § 1024.41(c)(1)(ii) that the bring the borrower current on a previously establish live contact. Comment 39(a)-6 borrower is not eligible for any loss missed payment is not delinquent for discusses the relationship between live mitigation options, the servicer complies purposes of § 1024.39. contact and the loss mitigation procedures with § 1024.39(a) and need not otherwise iii. During the 60-day period beginning on set forth in § 1024.41. establish or make good faith efforts to the effective date of transfer of the servicing 4. Promptly inform if appropriate. establish live contact. When the borrower is of any mortgage loan, a borrower is not i. Servicer’s determination. Except as in a forbearance program made available to delinquent for purposes of § 1024.39 if the provided in § 1024.39(e), it is within a borrowers experiencing a COVID–19-related transferee servicer learns that the borrower servicer’s reasonable discretion to determine hardship such that the additional live contact has made a timely payment that has been whether informing a borrower about the information is required under § 1024.39(e)(2) misdirected to the transferor servicer and the availability of loss mitigation options is or if a servicer relies on the temporary special transferee servicer documents its files appropriate under the circumstances. The COVID–19 loss mitigation procedural accordingly. See § 1024.33(c)(1) and following examples demonstrate when a safeguards provision in comment 33(c)(1)–2. servicer has made a reasonable determination § 1024.41(f)(3)(ii)(C)(1), the servicer is not iv. A servicer need not establish live regarding the appropriateness of providing maintaining ongoing contact with the contact with a borrower unless the borrower information about loss mitigation options. borrower under the loss mitigation is delinquent during the 36 days after a A. A servicer provides information about procedures under § 1024.41 in a way that payment due date. If the borrower satisfies a the availability of loss mitigation options to would comply with § 1024.39(a) if the payment in full before the end of the 36-day a borrower who notifies a servicer during live servicer has only sent the notices required by period, the servicer need not establish live contact of a material adverse change in the § 1024.41(b)(2)(i)(B) and (c)(2)(iii) and has contact with the borrower. For example, if a borrower’s financial circumstances that is had no further ongoing contact with the borrower misses a January 1 due date but likely to cause the borrower to experience a borrower concerning the borrower’s loss makes that payment on February 1, a servicer long-term delinquency for which loss mitigation application. A servicer must need not establish or make good faith efforts mitigation options may be available. resume compliance with the requirements of to establish live contact by February 6. B. A servicer does not provide information § 1024.39(a) for a borrower who becomes 2. Establishing live contact. Live contact about the availability of loss mitigation delinquent again after curing a prior provides servicers an opportunity to discuss options to a borrower who has missed a delinquency. the circumstances of a borrower’s January 1 payment and notified the servicer delinquency. Live contact with a borrower that full late payment will be transmitted to * * * * * includes speaking on the telephone or the servicer by February 15. § 1024.41—Loss Mitigation Procedures conducting an in-person meeting with the ii. Promptly inform. If appropriate, a * * * * * borrower but not leaving a recorded phone servicer may inform borrowers about the message. A servicer may rely on live contact availability of loss mitigation options orally, 41(b)(1) Complete Loss Mitigation established at the borrower’s initiative to in writing, or through electronic Application satisfy the live contact requirement in communication, but the servicer must 1. In general. A servicer has flexibility to § 1024.39(a). Servicers may also combine provide such information promptly after the establish its own application requirements contacts made pursuant to § 1024.39(a) with servicer establishes live contact. Except as and to decide the type and amount of contacts made with borrowers for other provided in § 1024.39(e), a servicer need not information it will require from borrowers reasons, for instance, by telling borrowers on notify a borrower about any particular loss applying for loss mitigation options. In the collection calls that loss mitigation options mitigation options at this time; if appropriate, course of gathering documents and may be available. a servicer need only inform borrowers information from a borrower to complete a 3. Good faith efforts. Good faith efforts to generally that loss mitigation options may be loss mitigation application, a servicer may establish live contact consist of reasonable available. If appropriate, a servicer may stop collecting documents and information steps, under the circumstances, to reach a satisfy the requirement in § 1024.39(a) to for a particular loss mitigation option after borrower and may include telephoning the inform a borrower about loss mitigation receiving information confirming that, borrower on more than one occasion or options by providing the written notice pursuant to any requirements established by sending written or electronic communication required by § 1024.39(b)(1), but the servicer the owner or assignee of the borrower’s encouraging the borrower to establish live must provide such notice promptly after the mortgage loan, the borrower is ineligible for contact with the servicer. The length of a servicer establishes live contact. that option. A servicer may not stop borrower’s delinquency, as well as a 5. Borrower’s representative. Section collecting documents and information for borrower’s failure to respond to a servicer’s 1024.39 does not prohibit a servicer from any loss mitigation option based solely upon repeated attempts at communication satisfying its requirements by establishing the borrower’s stated preference but may stop pursuant to § 1024.39(a), are relevant live contact with and, if applicable, collecting documents and information for circumstances to consider. For example, providing information about loss mitigation any loss mitigation option based on the whereas ‘‘good faith efforts’’ to establish live options to a person authorized by the borrower’s stated preference in conjunction contact with regard to a borrower with two borrower to communicate with the servicer with other information, as prescribed by any consecutive missed payments might require on the borrower’s behalf. A servicer may requirements established by the owner or a telephone call, ‘‘good faith efforts’’ to undertake reasonable procedures to assignee. A servicer must continue to establish live contact with regard to an determine if a person that claims to be an exercise reasonable diligence to obtain unresponsive borrower with six or more agent of a borrower has authority from the documents and information from the consecutive missed payments might require borrower to act on the borrower’s behalf, for borrower that the servicer requires to no more than including a sentence requesting example, by requiring a person that claims to evaluate the borrower as to all other loss that the borrower contact the servicer with be an agent of the borrower to provide mitigation options available to the borrower. regard to the delinquencies in the periodic documentation from the borrower stating that For example:

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i. Assume a particular loss mitigation option but the borrower does not provide any borrower requests further assistance, the option is only available for borrowers whose information that a servicer would consider servicer must exercise reasonable diligence to mortgage loans were originated before a for evaluating a loss mitigation application. complete the application before the end of specific date. Once a servicer receives 4. Although a servicer has flexibility to the forbearance period. documents or information confirming that a establish its own requirements regarding the 5. Information not in the borrower’s mortgage loan was originated after that date, documents and information necessary for a control. A loss mitigation application is the servicer may stop collecting documents loss mitigation application, the servicer must complete when a borrower provides all or information from the borrower that the act with reasonable diligence to collect information required from the borrower servicer would use to evaluate the borrower information needed to complete the notwithstanding that additional information for that loss mitigation option, but the application. A servicer must request may be required by a servicer that is not in servicer must continue its efforts to obtain information necessary to make a loss the control of a borrower. For example, if a documents and information from the mitigation application complete promptly servicer requires a consumer report for a loss borrower that the servicer requires to after receiving the loss mitigation mitigation evaluation, a loss mitigation evaluate the borrower for all other available application. Reasonable diligence for application is considered complete if a loss mitigation options. purposes of § 1024.41(b)(1) includes, without borrower has submitted all information ii. Assume applicable requirements limitation, the following actions: required from the borrower without regard to established by the owner or assignee of the i. A servicer requires additional whether a servicer has obtained a consumer mortgage loan provide that a borrower is information from the applicant, such as an report that a servicer has requested from a ineligible for home retention loss mitigation address or a telephone number to verify consumer reporting agency. options if the borrower states a preference for employment; the servicer contacts the * * * * * a short sale and provides evidence of another applicant promptly to obtain such applicable hardship, such as military information after receiving a loss mitigation 41(f)(3) Temporary Special COVID–19 Loss Permanent Change of Station orders or an application; Mitigation Procedural Safeguards employment transfer more than 50 miles ii. Servicing for a mortgage loan is 1. Record retention. As required by away. If the borrower indicates a preference transferred to a servicer and the borrower § 1024.38(c)(1), a servicer shall maintain for a short sale or, more generally, not to makes an incomplete loss mitigation records that document actions taken with retain the property, the servicer may not stop application to the transferee servicer after the respect to a borrower’s mortgage loan account collecting documents and information from transfer; the transferee servicer reviews until one year after the date a mortgage loan the borrower pertaining to available home documents provided by the transferor is discharged or servicing of a mortgage loan retention options solely because the borrower servicer to determine if information required is transferred by the servicer to a transferee has indicated such a preference, but the to make the loss mitigation application servicer. If the servicer makes the first notice servicer may stop collecting such documents complete is contained within documents or filing required by applicable law for any and information once the servicer receives transferred by the transferor servicer to the judicial or non-judicial foreclosure process information confirming that the borrower has servicer; and before January 1, 2022, these records must an applicable hardship under requirements iii. A servicer offers a borrower a short- include evidence demonstrating compliance established by the owner or assignee, such as term payment forbearance program or a with § 1024.41(f)(3), including, if applicable, military Permanent Change of Station orders short-term repayment plan based on an evidence that the servicer satisfied one of the or employment transfer. evaluation of an incomplete loss mitigation procedural safeguards described in 2. When an inquiry or prequalification application and provides the borrower the § 1024.41(3)(ii). For example, if the request becomes an application. A servicer is written notice pursuant to § 1024.41(c)(2)(iii). procedural safeguards are met due to an encouraged to provide borrowers with If the borrower remains in compliance with unresponsive borrower determination as information about loss mitigation programs. the short-term payment forbearance program described in § 1024.41(f)(3)(ii)(C), the If in giving information to the borrower, the or short-term repayment plan, and the servicer must maintain records borrower expresses an interest in applying borrower does not request further assistance, demonstrating that the servicer did not for a loss mitigation option and provides the servicer may suspend reasonable receive communications from the borrower information the servicer would evaluate in diligence efforts until near the end of the during the relevant time period and that all connection with a loss mitigation payment forbearance program or repayment four elements of § 1024.41(f)(3)(ii)(C) were application, the borrower’s inquiry or plan. However, if the borrower fails to met. For example, records demonstrating that prequalification request has become a loss comply with the program or plan or requests the servicer did not receive any mitigation application. A loss mitigation further assistance, the servicer must communications from the borrower during application is considered expansively and immediately resume reasonable diligence any relevant time period may include, for includes any ‘‘prequalification’’ for a loss efforts. Near the end of a short-term payment example: (1) Call logs, servicing notes, and mitigation option. For example, if a borrower forbearance program offered based on an other systems of record cataloguing requests that a servicer determine if the evaluation of an incomplete loss mitigation communications showing the absence of borrower is ‘‘prequalified’’ for a loss application pursuant to § 1024.41(c)(2)(iii), written or oral communication from the borrower during the relevant period; and (2) mitigation program by evaluating the and prior to the end of the forbearance a schedule of all transactions credited or borrower against preliminary criteria to period, if the borrower remains delinquent, a debited to the mortgage loan account, determine eligibility for a loss mitigation servicer must contact the borrower to including any escrow account as defined in option, the request constitutes a loss determine if the borrower wishes to complete § 1024.17(b) and any suspense account, as mitigation application. the loss mitigation application and proceed required by § 1024.38(c)(2)(i). The method of 3. Examples of inquiries that are not with a full loss mitigation evaluation. retaining these records must comply with applications. The following examples iv. If the borrower is in a short-term comment 31(c)(1)–1. illustrate situations in which only an inquiry payment forbearance program made available has taken place and no loss mitigation to borrowers experiencing a COVID–19- 41(f)(3)(ii)(C) Unresponsive Borrower application has been submitted: related hardship, including a payment 1. Communication. For purposes of i. A borrower calls to ask about loss forbearance program made pursuant to the § 1024.41(f)(3)(ii)(C), a servicer has not mitigation options and servicer personnel Coronavirus Economic Stability Act, section received a communication from the borrower explain the loss mitigation options available 4022 (15 U.S.C. 9056), that was offered to the if the servicer has not received any written to the borrower and the criteria for borrower based on evaluation of an or electronic communication from the determining the borrower’s eligibility for any incomplete application, and the borrower borrower about the mortgage loan obligation, such loss mitigation option. The borrower remains delinquent, a servicer must contact has not received a telephone call from the does not, however, provide any information the borrower no later than 30 days before the borrower about the mortgage loan obligation, that a servicer would consider for evaluating scheduled end of the forbearance period to has not successfully established live contact a loss mitigation application. determine if the borrower wishes to complete with the borrower about the mortgage loan ii. A borrower calls to ask about the the loss mitigation application and proceed obligation, and has not received a payment process for applying for a loss mitigation with a full loss mitigation evaluation. If the on the mortgage loan obligation. A servicer

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has received a communication from the borrower. A servicer may undertake servicer shall treat the communication as borrower if, for example, the borrower reasonable procedures to determine if a having been submitted by the borrower. discusses loss mitigation options with the person that claims to be an agent of a * * * * * servicer, even if the borrower does not borrower has authority from the borrower to Dated: June 25, 2021. submit a loss mitigation application or agree act on the borrower’s behalf, for example, by to a loss mitigation option offered by the requiring that a person that claims to be an David Uejio, servicer. agent of the borrower provide documentation Acting Director, Bureau of Consumer 2. Borrower’s representative. A servicer has from the borrower stating that the purported Financial Protection. received a communication from the borrower agent is acting on the borrower’s behalf. [FR Doc. 2021–13964 Filed 6–29–21; 8:45 am] if the communication is from an agent of the Upon receipt of such documentation, the BILLING CODE 4810–AM–P

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Reader Aids Federal Register Vol. 86, No. 123 Wednesday, June 30, 2021

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING JUNE

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. Presidential Documents 2 CFR Ch. CII ...... 29931 Executive orders and proclamations 741–6000 1000...... 29483 Proposed Rules: The United States Government Manual 741–6000 843...... 34637 3 CFR 890...... 32813 Other Services Electronic and on-line services (voice) 741–6020 Proclamations: 6 CFR Privacy Act Compilation 741–6050 10218...... 29925 10219...... 29929 Proposed Rules: 10220...... 30131 37...... 31987 ELECTRONIC RESEARCH 10221...... 30133 10222...... 30135 7 CFR World Wide Web 10223...... 30137 3...... 30535 Full text of the daily Federal Register, CFR and other publications 10224...... 30139 205...... 33479 is located at: www.govinfo.gov. 10225...... 30141 273...... 34605 Federal Register information and research tools, including Public 10226...... 30143 407...... 34606 Inspection List and electronic text are located at: 10227...... 31903 457 ...... 33081, 33485, 34606 www.federalregister.gov. 10228...... 32359 984...... 32721 10229...... 32717 1206...... 33491 E-mail 10230...... 32719 4284, Subpart L...... 31585 FEDREGTOC (Daily Federal Register Table of Contents Electronic Executive Orders: Proposed Rules: Mailing List) is an open e-mail service that provides subscribers 13959 (partially 272...... 30795 with a digital form of the Federal Register Table of Contents. The superseded and 273...... 30795 digital form of the Federal Register Table of Contents includes amended by 966...... 33913 HTML and PDF links to the full text of each document. 14026) ...... 30145 3555...... 30555 To join or leave, go to https://public.govdelivery.com/accounts/ 13974 (revoked by USGPOOFR/subscriber/new, enter your email address, then 14032) ...... 30145 9 CFR follow the instructions to join, leave, or manage your 14031...... 29675 310...... 33085 subscription. 14032...... 30145 Proposed Rules: 14033...... 31079 PENS (Public Law Electronic Notification Service) is an e-mail 2...... 33567 13942 (revoked by EO service that notifies subscribers of recently enacted laws. 14034) ...... 31423 10 CFR To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 13943 (revoked by EO Ch. I ...... 29683 and select Join or leave the list (or change settings); then follow 14034) ...... 31423 15...... 32146 the instructions. 13971 (revoked by EO 34...... 29173 FEDREGTOC and PENS are mailing lists only. We cannot 14034) ...... 31423 170...... 32146 respond to specific inquiries. 14034...... 31423 171...... 32146 Reference questions. Send questions and comments about the 14035...... 34593 1061...... 29932 Federal Register system to: [email protected] Administrative Orders: The Federal Register staff cannot interpret specific documents or Memorandums: Proposed Rules: regulations. Memorandum of Ch. I ...... 32817 January 28, 2021 ...... 33077 429...... 29888 430 ...... 29704, 29888, 29954, FEDERAL REGISTER PAGES AND DATE, JUNE Memorandum of June 4, 2021 ...... 30533 29964, 34639, 34640 29173–29482...... 1 Memorandum of June 431 ...... 30796, 31182, 32332 29483–29674...... 2 8, 2021 ...... 32629 12 CFR 29675–29928...... 3 Memorandum of June 29929–30130...... 4 21, 2021 ...... 34591 204...... 29937 30131–30374...... 7 Presidential Ch. III ...... 32728 30375–30532...... 8 Determinations: 741...... 34611 30533–30752...... 9 PD No. 2021–08 of Ch. X...... 32723 30753–31086...... 10 June 11, 2021 ...... 32631 1024...... 34848 31087–31426...... 11 Notices: 1026...... 29685 31427–31584...... 14 Notice of June 8, Proposed Rules: 31585–31902...... 15 2021 ...... 31083 210...... 31376 31903–32184...... 16 Notice of June 8, 235...... 34644 32185–32360...... 17 2021 ...... 31085 365...... 33570 32361–32628...... 21 Notice of June 21, 615...... 34645 32629–32716...... 22 2021 ...... 33075 32717–33076...... 23 Orders: 14 CFR 33077–33478...... 24 Order of May 28, 11...... 31006 33479–33852...... 25 2021 ...... 29927 39 ...... 29176, 29178, 29181, 33853–34124...... 28 29183, 29185, 29187, 29483, 34125–34590...... 29 5 CFR 29486, 29939, 29942, 29944, 34591–34904...... 30 335...... 30375 30151, 30153, 30155, 30158,

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30162, 30380, 30383, 30753, 131...... 31117 525...... 29197 85...... 34308 30756, 30759, 30761, 30763, 1300...... 33861 86...... 34308 30766, 30768, 30770, 31087, 1301...... 33861 32 CFR 88...... 34308 31089, 31092, 31095, 31097, 1304...... 33861 45...... 32194, 33885 89...... 34308 31101, 31599, 31601, 31604, 1308 ...... 29506, 30772, 30775, 310...... 31430 90...... 34308 31609, 31612, 31905, 32735, 31427, 32633, 33508 91...... 34308 33088, 33091, 33094, 33097, 1310...... 30169 33 CFR 92...... 34308 33099, 33101, 33103, 33105, Proposed Rules: 100 ...... 29691, 32768, 33122 94...... 34308 33108, 33110, 33112, 33116, 73...... 34664 117...... 29204, 33885 97...... 29948 33494, 33498, 34125, 34127, 165 ...... 30178, 30180, 31166, 124...... 31172 34621, 34623 22 CFR 31167, 31170, 31431, 31620, 141...... 29526, 31939 71 ...... 29488, 29489, 29946, 22...... 31614, 31617 31916, 32215, 32218, 32219, 142...... 31939 30164, 30165, 30167, 30168, 120...... 30778 32635, 33124, 33126, 33128, 147...... 32221 31103, 31104, 31105, 31107, 121...... 29196 33130, 33133, 33135, 33511, 180 ...... 29694, 30206, 31948, 31108, 31109, 31111, 31112, 123...... 29196 33512, 33514, 33515, 33516, 31950, 33890, 34142, 34145 31113, 31114, 31907, 34130, 124...... 29196 33887, 33888, 34125, 34134, 257...... 33892 34625, 34626 126...... 29196 34136, 34138, 34139 261...... 31622 73...... 29687 129...... 29196 Proposed Rules: 271...... 29207, 31622 91...... 31006 213...... 31139 100 ...... 29711, 30221, 30224, 372...... 29698 97 ...... 29688, 29690, 33501, 306...... 30169 30851, 33598 716...... 34147 33503 Proposed Rules: 117...... 33153, 34172 721 ...... 30184, 30190, 30196, 111...... 31006, 32185 212...... 30558 165 ...... 29725, 29727, 30228, 30210 Proposed Rules: 30230, 31456, 31459, 31999, 1027...... 34308 25...... 33147 24 CFR 32846 1033...... 34308 39 ...... 29212, 29216, 29705, 5...... 30779 1036...... 34308 29707, 30216, 30218, 30395, 28...... 31619 34 CFR 1037...... 34308 30398, 30819, 30822, 30824, 91...... 30779 Ch. I ...... 32637 1039...... 34308 31194, 31451, 31453, 31989, 92...... 30779, 32767 Ch. III ...... 32770 1042...... 34308 31992, 31995, 32653, 33149, 570...... 30779 668...... 33518 1043...... 34308 33152, 33574, 33576, 33579, 574...... 30779 685...... 31432 1045...... 34308 33915, 33918, 33919, 34163, 1048...... 34308 576...... 30779 Proposed Rules: 34166, 34653, 34656, 34660 1051...... 34308 903...... 30779 75...... 34664 1054...... 34308 71 ...... 29530, 29531, 29967, Proposed Rules: 1060...... 34308 29969, 30399, 31998, 32363, 100...... 33590 37 CFR 33581, 33584, 33585, 33586, 1065...... 34308 11...... 32640 33588, 33920, 34168, 34663 26 CFR 1066...... 34308 201...... 32640 1068...... 34308 1...... 31146, 32185 15 CFR 202...... 32640 1074...... 34308 301...... 31146 Ch. VII...... 32757 203...... 32640 1507...... 34154 Proposed Rules: 210...... 32640 732...... 29189 Proposed Rules: 54...... 32813 351...... 31172 734...... 29189 52 ...... 29219, 29222, 29227, 370...... 32640 744 ...... 29190, 31909, 33119 27 CFR 30232, 30234, 30854, 31218, 760...... 30533 Proposed Rules: 31645, 32006, 32656, 32848, 9 ...... 32186, 32189, 32191 922...... 32737 381...... 34674, 34676 32850, 33154, 34175, 34177, Proposed Rules: Proposed Rules: 385...... 33601 34677 478...... 30826 922...... 34169 38 CFR 63...... 31225 479...... 30826 70...... 34677 16 CFR 5...... 30182 28 CFR 81 ...... 31460, 34177, 34187 1112...... 33022 9...... 30541 121...... 29541 1130...... 33022 31...... 31152 61...... 33518 141...... 32856 1236...... 33022 29 CFR 39 CFR 174...... 29229, 33922 1632...... 32758 180...... 29229, 33922 1473...... 29196 Proposed Rules: Proposed Rules: 261...... 30237 1910...... 32376 305...... 29533 20...... 29732 271...... 31233 2204...... 31165 Ch. II ...... 34171 111...... 29734 705...... 33926 4044...... 31619 721...... 31239 40 CFR 17 CFR Proposed Rules: 725...... 31239 200...... 31115 10...... 32818 1...... 31172 1036...... 34189 240...... 31115 531...... 32818 9 ...... 30184, 30190, 30196, 1037...... 34189 242...... 29195 2590...... 32813 34308 30...... 29515 41 CFR 249...... 31115 30 CFR 49...... 31918 Proposed Rules: 18 CFR 250...... 34132 51...... 29948 300–3...... 31659 35...... 33853 723...... 29509 52 ...... 29205, 29517, 29520, 302–2...... 31659 37...... 29491 724...... 29509 29948, 29949, 30201, 30387, 302–3...... 31659 38...... 29491 845...... 29509 30543, 30545, 30793, 31918, 302–12...... 31659 154...... 29503 846...... 29509 31920, 31922, 31924, 31926, 302–15...... 31659 260...... 29503 Proposed Rules: 31927, 32363, 32366, 33525, 302–17...... 31659 284...... 29503 250...... 34172 33527, 33528, 33539, 33541, 550...... 34172 33542, 33544, 34139 42 CFR 19 CFR 917...... 29709 59...... 34308 405...... 29526 Ch. I...... 32764, 32766 1206...... 31196 60...... 34308 410...... 33902 12...... 31910 1241...... 31196 70...... 33544, 33547 411...... 33902 78...... 29948 412...... 33902 21 CFR 31 CFR 81 ...... 29522, 30204, 31438, 414...... 33902 130...... 31117 50...... 30537, 31620 33547, 34141 416...... 33902

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417...... 29526 45 CFR 87...... 30860 383...... 32643, 34631 419...... 33902 1225...... 30169 90...... 30860 384...... 32643, 34631 422...... 29526 101...... 32669 Proposed Rules: 391...... 32643 423...... 29526 149...... 32813 48 CFR Proposed Rules: 455...... 29526 1174...... 33603 1180...... 30243 460...... 29526 Ch. I...... 31070, 31075 482...... 33902 47 CFR 7...... 31070 11...... 31074 50 CFR 485...... 33902 1...... 30389, 32775 16...... 31073 510...... 33135 2...... 33902 17 ...... 30688, 31830, 31955, 512...... 33902 19...... 31074 31972, 33159 27...... 30389, 32775 22...... 31074 Proposed Rules: 51...... 33136 300...... 31178 51c ...... 32008 26...... 31074 622 ...... 29209, 30393, 33911, 54 ...... 30391, 33549, 33551 42...... 31074 412...... 33157 64...... 29952 34159 413...... 33157 52...... 31074 648 ...... 32651, 33552, 33553 73 ...... 29702, 30550, 31954, 53...... 31074 425...... 33157 660 ...... 29210, 30551, 32361, 32221, 33551, 34158, 34627 636...... 33910 455...... 33157 32804, 33142, 34161 302...... 31638 637...... 33910 495...... 33157 665...... 32239 Proposed Rules: 652...... 33910 Proposed Rules: Ch. I ...... 31464 Proposed Rules: 43 CFR 1...... 29735 2...... 31468 17 ...... 29432, 29975, 30888, 3160...... 30548 2 ...... 29735, 30860, 32669 5...... 31468 31668, 32241, 32857, 32859, 9230...... 30548 4...... 34679 6...... 31468 33137, 33177, 33613, 34695 18...... 29364 Proposed Rules 9...... 34679 13...... 31468 91...... 32878 8365...... 31665 15...... 32669 19...... 31468 25...... 32669 52...... 31468 219...... 30080 27...... 29735, 32669 648...... 31262, 33191 44 CFR 52...... 31404 49 CFR 660...... 29544 61...... 31177 64 ...... 29969, 30571, 31668 107...... 29528 665...... 30582, 34711 328...... 31448 73 ...... 32011, 33612, 34695 380...... 34631 679...... 29977, 31474

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